Asia

Plummeting iron ore prices on the basis of China’s property crisis might wipe out $3 billion from the government budget.
19Aug By TheGreenZoneNo Comments
Asia, China, World

Plummeting iron ore prices on the basis of China’s property crisis might wipe out $3 billion from the government budget.

Plummeting iron ore prices could cost the federal government $3 billion in revenue, which is likely to push the budget further into deficit this financial year. China's property market is in a precarious state, which has seen demand for iron ore — the key component for making steel – drop significantly. Australia has done exceptionally well riding the boom in the Chinese economy. But the political and economic uncertainty surrounding the world's two biggest economies — the US and China — points to tougher times ahead. But that decline has accelerated in recent weeks, with prices now sitting around $82 per tonne, which is below the price the Treasury had anticipated at this point. It had forecast the iron ore price gradually declining to settle at $60 per tonne by the first qua...
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Sri Lanka strengthens ties with India: Wickremesinghe
18Aug By TheGreenZoneNo Comments
Asia

Sri Lanka strengthens ties with India: Wickremesinghe

Colombo, Aug 18 (PTI) Sri Lankan President Ranil Wickremesinghe has emphasised the importance of strengthening economic cooperation and regional integration with Japan to India, with a special focus on deepening ties with New Delhi, as his country seeks to emerge from bankruptcy. Wickremesinghe's comments came as he was virtually addressing the Head of State Session of the 3rd Voice of Global South Summit, held under the theme "An Empowered Global South for a Sustainable Future." From the north-central town of Anuradhapura yesterday. The conference, chaired by Indian Prime Minister Narendra Modi, brought togetherheads of state from various countries. Reflecting on Indo-Sri Lankan relations, the President emphasised the "vision"statement shared between the two nations, which celeb...
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How Bangladesh’s turmoil may affect its economic growth: Explained
8Aug By TheGreenZoneNo Comments
Asia, World

How Bangladesh’s turmoil may affect its economic growth: Explained

As Bangladesh faces regime change, an expert warned that one of the tasks before the new government will be "to stop the free fall of the economy." It is now feared that the damage from mass violence, unemployment, persisting inflation, and "slowed real GDP [Gross Domestic Product] growth" may impact Bangladesh's economy. Saad Hammadi, a fellow at the Balsillie School of International Affairs, told Al Jazeera on Monday, “The job of the interim and subsequent government will be extremely challenging to stop the free fall of the economy and recover the state at a time when even the global economic and political orders are extremely chaotic.”Thousands of protesters stormed and looted prime minister's residence. Several police stations, buildings and public assets were vandalised and set o...
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Bangladesh’s economy is recovering from the epidemic, but it still faces chronically high inflation.
7Aug By TheGreenZoneNo Comments
Asia, World

Bangladesh’s economy is recovering from the epidemic, but it still faces chronically high inflation.

Bangladesh’s economy, which has been in recovery mode since the Covid-19 pandemic’s outbreak, has faced persistently high inflation that hit close to 10% in recent months. The resignation of Sheikh Hasina as the Prime Minister of Bangladesh and the subsequent takeover by the military could lead to further troubles for the economy that is also facing problems of liquidity and forex reserves. Even before the current political crisis, international agencies have called for structural reforms to help it take forward growth and maintain economic stability. However, the country has been one of the fastest growing economies in the world with high GDP per capita. As per its Budget, which was passed on June 30, the country is targeting an inflation rate of 6% and GDP growth rate of 6.75%. Th...
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Japan’s stock market plunges due to worries about the US economy.
2Aug By TheGreenZoneNo Comments
Asia

Japan’s stock market plunges due to worries about the US economy.

Japanese stocks have taken a dramatic plunge after Wall Street shares tumbled over concerns about the US economy and a stronger yen. The benchmark Nikkei 225 index closed down 5.81 percent on Friday, or 2,216.63 points, at 35,909.70 – the second-biggest points drop in history, and the largest fall in percentage terms since March 2020 at the start of the pandemic. The broader Topix index lost 6.14 percent, or 166.09 points, to 2,537.60 “The chain of stock market declines did not stop,” IwaiCosmo Securities said following US and European index falls. Most Tokyo shares faced selloffs from early trade on Friday, having ended sharply lower the previous day, it added. On Wall Street, all three major indices finished decisively lower as weak manufacturing data led to worries about...
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No reconsideration of the policy on Chinese FDI: Goyal
31Jul By TheGreenZoneNo Comments
Asia, World

No reconsideration of the policy on Chinese FDI: Goyal

The government is not looking at a review of the cautious policy regarding foreign direct investment (FDI) from China though the Economic Survey had backed a a more open approach to capital inflows from the neighbour to meet the manufacturing ambitions of the country. “There is no rethinking at present to support Chinese investments in the country,” commerce and industry minister Piyush Goyal said here on Tuesday, in the first categorical statement on this from a senior government functionary. He said the Economic Survey was a report that always flags new ideas, though it is “not at all binding on the government.” The survey last week had suggested that welcoming FDI from China will help India better meet its ambition of having a greater share in the global va...
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Together, China and Australia can accelerate Asean’s energy transformation.
31Jul By TheGreenZoneNo Comments
Asia

Together, China and Australia can accelerate Asean’s energy transformation.

The Australia-China relationship has stabilised after years of geopolitical and trade turbulence. This lays the groundwork for further cooperation, including through joint initiatives in Asia. A significant opportunity lies in Southeast Asia’s push towards an electrified future. Almost all countries in the region have committed to achieving net zero carbon emissions, and electrifying the end-user sectors, including transport, is a crucial strategy in this effort. According to the International Renewable Energy Agency’s road map to keep the global temperature rise under 1.5 degrees Celsius by 2050, Southeast Asia is set for a rapid electrification, with more than half of its energy consumption coming from electricity by 2050, up from 22 per cent in 2018. This shif...
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China offers Pakistan $300 million in Panda bonds in an effort to alleviate its economic woes.
27Jul By TheGreenZoneNo Comments
Asia, China

China offers Pakistan $300 million in Panda bonds in an effort to alleviate its economic woes.

Panda Bonds are onshore renminbi-denominated bonds issued in the People’s Republic of China by non-Chinese entities and serve as a capital-raising platform for foreign countries or companies targeting Chinese investors. With an aim to improve the financial stability of a cash-strapped country which is grappling with several other challenges such as high inflation and declining forex reserves, Pakistan has sought cooperation from Chinese institutional investors to launch Panda Bonds to raise between $250 million and $300 million initially. Federal Minister for Finance and Revenue Muhammad Aurangzeb discussed the plan with the Governor of the People’s Bank of China (PBoC) Pan Gongsheng during a meeting in Beijing, covering a wide range of economic issues on Friday. Panda Bonds are ...
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What role does toilet paper have in the Indian economy?
26Jul By TheGreenZoneNo Comments
Asia, World

What role does toilet paper have in the Indian economy?

The discussion on India's economy took a toilet break. Among the numerous mentions in the Economic Survey 2023-2024 of tax, trade deficit, fiscal prudence -- terms that some might find difficult to metabolise -- there was a very unusual mention of toilet paper. It tries to send a green message to the West, which might not be a smooth wipe. The Economic Survey 2023-24 presented by Nirmala Sitharamanmentioned toilet paper to underscore its rampant use in Western countries and its significant environmental implications. In the chapter dealing with climate change, the annual document also highlighted how substitute hygiene practices followed in Asian countries have been ignored by the West and how they can provide valuable insights into more sustainable use of resources. The que...
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China’s downturn suggests a special liquidity trap
25Jul By TheGreenZoneNo Comments
Asia, China

China’s downturn suggests a special liquidity trap

HONG KONG, July 25 (Reuters Breakingviews) - China is awash with money and its growth is slowing. To avert a prolonged stagnation, President Xi Jinping’s administration may need to spend its way out of the problem. Yet this and other classic remedies to such a malaise may not be effective in Beijing’s “socialist market economy”. China’s condition may be seen as what economists call a liquidity trap, though the term means different things to different people. Writing a century ago during the Great Depression, John Maynard Keynes described a situation where bond yields fall to a lower limit and individuals hoard cash. In 1998 after Japan’s property bubble burst, its economy slid into recession and monetary policy lost impact as interest rates were close to zero, Paul Krugman warned,...
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