Asia

On 4 February 2023, Sri Lanka celebrated its 75th anniversary of independence from British rule. With the country amid a crippling economic crisis and a fall in per capita income, Sri Lankans have mixed views on whether there was much to celebrate. Sri Lankans do agree, however, on the need to re-double policy efforts to tackle the economic crisis and build a prosperous and inclusive economy for future generations. An IMF program is necessary to stabilise the economy and enable Sri Lanka to borrow prudently from abroad again but no panacea. As China is yet to provide assurances on debt sustainability, IMF Board approval of a $ 3.9 billion IMF program over four years may take some time. Trading more with dynamic Asia economies is a complementary pathway for Sri Lanka to earn foreign e...

As concerns for user data privacy on social media platforms continue to rise, the popular video-sharing app TikTok is facing growing bans in the United States. The app, which has over 100 million active users in the country, has come under scrutiny for its data collection practices and alleged ties to the Chinese government. Several states, including Texas, New York, and Florida, have already banned the use of TikTok on government-owned devices. Additionally, some US military branches have prohibited the use of the app on government-issued phones. The latest ban was imposed by the US Transportation Security Administration (TSA), which has prohibited its employees from using TikTok for work-related purposes. The agency cited concerns about the security of user data and potential thre...

Eleventh-hour negotiations between Pakistan and the International Monetary Fund (IMF) have failed to unlock $1.1bn in crucial funds aimed at preventing the country from going bankrupt. A deepening economic crisis has all but emptied Pakistan's foreign exchange reserves, leaving it barely enough dollars to cover a month of imports and it is struggling to service sky-high levels of foreign debt. The IMF team, which leaves Islamabad on Friday, said "considerable progress" had been made after 10 days of talks. "Virtual discussions will continue in the coming days," the head of the IMF mission Nathan Porter said in a statement. Although there was no financial lifeboat, both sides tried to paint the meeting positively. Pakistan's finance minister told a news conference the country h...

Sustaining the recovery will require both monetary and fiscal support as well as accelerated structural reforms China’s economy is set to rebound this year as mobility and activity pick up after the lifting of pandemic restrictions, providing a boost to the global economy. The economy will expand 5.2 percent this year, according to our latest projections, versus 3 percent last year. That’s good news for China and the world as the Chinese economy is now expected to contribute a third of global growth this year. Even so, China still faces significant economic challenges. The contraction in real estate remains a major headwind, and there is still some uncertainty around the evolution of the virus. Longer-term, headwinds to growth include a shrinking population and slowing produ...

After an economic collapse and political upheaval, Sri Lankans have become resigned to leaner meals and reduced horizons. On the surface, calm has returned to Sri Lanka since the South Asian nation plunged into political chaos and virtual bankruptcy last summer. Gone are the fuel lines that snaked for blocks; a seaside expanse that had been the site of a monthslong protest encampment was resplendent over the holidays with Christmas lights and carnival rides. But underneath, the island’s economy remains on a ventilator, with the government yet to secure a way out of crushing debt. Sri Lankans have become resigned to a sad reality: pared-down meals, shrunken incomes and reduced expectations. Many young people are desperately trying to find a way out of the country. ...

China's National Bureau of Statistics (NBS) announced that the country's annual GDP growth decreased to 3%, much below the declared objective of 5.5% in 2022, and that its economic slowdown may have global repercussions, according to Financial Post.  Vice-premier of the People's Republic of China Liu He, who spoke at the World Economic Forum in Davos in 2023, effectively outlined the issues and difficulties that China and the world economy are currently confronting. "Over the past five years, we have experienced all kinds of unexpected events, and witnessed profound changes in the world's political and economic landscape. Therefore, the theme of this year's Annual Meeting, 'Cooperation in a Fragmented World', cannot be more relevant," He said. "The Covid-19 pandemic puncture...

Pakistan’s economic crisis is worsening with each passing day. As of the beginning of 2023, the foreign exchange crisis has deepened significantly. On January 6, the country's forex reserves, held by the State Bank of Pakistan (SBP), dropped to a low of USD 4.343 billion, enough to cover only three weeks of imports.[1] This decline was due to the repayment of USD 1 billion in commercial loans to two UAE-based banks. Additionally, remittances in the recently concluded six-month period of July-December 2022 were recorded at USD 14.1 billion, USD 1.7 billion less than in the same period last year (USD 15.8 billion).[2]  Moreover, the weekly food inflation has reportedly jumped by nearly 31 per cent compared to last year.[3] All these factors have exacerbated daily hardships of...

Former Australian Prime Minister Tony Abbott turned down President Barack Obama's request to halt Australia's profitable iron ore trade with China in 2014; Treasurer Joe Hockey called the request "crazy." However, there is a real possibility that Australia may be preparing to restrict or obstruct what is expected to be a profitable future export: lithium, especially in light of the escalating geopolitical competition. Lithium is a crucial component of electric car batteries and has been dubbed the "new oil" by Tesla CEO Elon Musk. China is the global leader in the production of this good, which plays a significant role in its post-energy transition economic plan. China is a significant investor in Australia's lithium business, owning holdings in three of the country's main mines as ...

 December 23, 2022 Pakistan is on a spending spree, with economy in shambles and people in dire straits. The proverbial ostrich finds its parallel in the banana nation and buries its head in sands, in denial of the existence of painful realities. However, the extravagant nature of expenditure is not directed towards welfare, but for glossing over the counts it does not fare well. It leaves no stones unturned in sustaining the make-believe world of normalcy, even as most of its citizens have hardly any access to square meals. It remains a mystery that how a cash-strapped Pakistan manages to fund its obsession with Kashmir and other unproductive ventures, while continuing to barrel down the negative growth track and poised for smashing into bankruptcy. A close look in its s...