Asia

3Jun By Online DeskNo Comments
Asia, Market, World

World Economic Situation and Prospects: June 2024 Briefing, No. 181

Enhanced global economic outlook amid persistent vulnerabilities Global macroeconomic outlook The global economic outlook has improved since the previous forecast released in January 2024. Despite the most aggressive monetary tightening in decades, a hard landing scenario of the United States economy has largely receded. Most major economies have managed to bring down inflation without increasing unemployment and triggering a recession. However, the outlook is only cautiously optimistic as higher-for-longer interest rates, debt difficulties, and escalating geopolitical risks will continue to challenge stable and sustained economic growth. Ever-worsening climate shocks continue to pose additional challenges to the global economic outlook, threatening decades of development gains, esp...
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31May By Online DeskNo Comments
Asia, China, Market, World

Has investment banking lost its appeal among graduates from China’s elite schools?

In April, six months into an internship at an investment firm in Beijing, 24-year-old Wang Xuan (pseudonym) was told by Human Resources (HR) that he would not be offered a full-time position. Wang was unexpectedly calm when he got the news, remarking: “I anticipated this.” Signs of trouble emerged last year. He had come across reports of job cuts within the sector and got wind of discussions in the pantry regarding unpaid bonuses from the previous year. Senior colleagues openly expressed a desire to “lie flat” and resign themselves to the possibility of being laid off. Wang sighed, “Longtime employees might receive a retrenchment package of up to a million RMB. With that sum, they can afford to take a gap year and recharge. But for fresh graduates like us, it’s all about facing the ...
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“Booming” economy, while many still struggle
31May By Online DeskNo Comments
Asia

“Booming” economy, while many still struggle

When it comes to the simultaneous existence of growth and crisis, Bangladesh has become a model. There is a growth of per capita income on the one hand, and financial hardship, unemployment, hunger, malnutrition, and financial insecurity suffered by the majority of people on the other. Unprecedented expansion of private banks is happening while the banking sector faces a crisis with rising defaulted loans and big theft of bank money. Over the last decade, we have seen a construction boom on the one hand, and the highest rates of deforestation, air and water pollution, and land- and river-grabbing on the other. The super active propaganda machine of the government as well as their local and foreign partners consistently try to make us believe that the country is on the highway of develo...
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India’s rapid economic development creates a solid foundation for the upcoming government.
31May By Online DeskNo Comments
Asia

India’s rapid economic development creates a solid foundation for the upcoming government.

NEW DELHI, May 31 (Reuters) - India's economy grew at a faster-than-expected pace of 7.8% year-on-year in the first three months of 2024, helped by a strong performance in the manufacturing sector, and economists expect the momentum to continue this year.The highest growth pace among the largest economies globally will bolster the economic record of Prime Minister Narendra Modi, who is hoping to win a rare third term in the national election, with results set to be released on June 4.Investors are looking ahead to the election outcome and the full-year budget in mid-July to see what steps the new government might take to boost the economy.The Reserve Bank of India's (RBI) record surplus transfer of 2.11 trillion rupees ($25.3 billion) will help the next government to increase state spendi...
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According to Moody’s, India’s economy would rise rapidly in 2024 and 2025.
31May By Online DeskNo Comments
Asia

According to Moody’s, India’s economy would rise rapidly in 2024 and 2025.

The Indian economy is expected to witness 6.8% growth this year and 6.5% in 2025, according to Moody’s Ratings, which was based on robust economic performance and continued post-election policy. Real GDP growth in India increased to 7.7% in 2023 from 6.5% in 2022, primarily due to the government’s heavy capital spending and brisk manufacturing output. High-frequency indicators have shown continued economic momentum in the March and June quarters of this year. These indicators include robust goods and services tax revenues, growing auto sales, consumer optimism, and expanding manufacturing and services PMIs. “We believe the Indian economy should comfortably register 6-7 per cent annual real GDP growth and we forecast around 6.8 per cent growth,” Moody’s said in its update to Globa...
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AI and climate shocks present difficulties for the Indian economy, according to the RBI annual report.
30May By Online DeskNo Comments
Asia

AI and climate shocks present difficulties for the Indian economy, according to the RBI annual report.

Mumbai: The Indian economy would need to navigate some of the challenges arising out of the rapid adoption of artificial intelligence and machine learning technologies, and recurrent climate shocks, even as it is poised for stronger growth over the next decade, the Reserve Bank of India (RBI) said in its annual report for FY24. The central bank said that the growth in the next decade would come in the backdrop of macroeconomic and financial stability as India uses its demographic dividend and make the most of competitive advantages. “…the Indian economy is navigating the drag from an adverse global macroeconomic and financial environment,” it said in the report released on Thursday. However, real gross domestic product (GDP) growth is robust on the back of solid investment demand...
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29May By Online DeskNo Comments
Asia, China, Market, World

China hands rare death sentence to former senior banker for taking US$151 million in bribes

Former manager Bai Tianhui is the second China Huarong official to receive the ultimate penalty, after his former boss was executed in 2021No mention was made of Bai’s intention to appeal the court’s ruling, which is unusually severe in Chinese corruption cases A court in eastern China delivered a rare death sentence on Tuesday, after finding that a former senior banker accepted bribes worth more than 1.1 billion yuan (US$151 million) in his role with one of the country’s top four state asset managers. Bai Tianhui, former general manager of China Huarong International Holdings (CHIH), took advantage of his position to aid others in the acquisitions and financing of projects in exchange for the huge sums, the court found. A report on the Secondary Intermediate People’s Court of Ti...
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29May By Online DeskNo Comments
Asia, China, Market, World

Georgian Finance Minister, delegation of China’s Export-Import Bank discuss cooperation

Georgian Finance Minister Lasha Khutsishvili on Wednesday discussed economic and trade cooperation with China with a visiting delegation of the country’s Export and Import Bank state policy bank. The meeting comes as part of intensified ties between the two governments, who signed a strategic partnership agreement in July last year. The Georgian Ministry said the meeting with the delegation also featured Ekaterine Guntsadze, the country’s Deputy Finance Minister.
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Over the past five months, confidence in the US economy has almost doubled.
29May By Online DeskNo Comments
Asia

Over the past five months, confidence in the US economy has almost doubled.

The proportion of chief economists expecting strong growth in the US this year has gone to 97% now from 59% in January 2024, according to the World Economic Forum (WEF). The implication is that, despite high interest rates, the world's largest economy isn't slowing down. Global markets have their hopes pinned on interest rate cuts from the US Federal Reserve, as inflation inches down. Nearly seven out of every 10 economists polled by Reuters expect a rate cut by the American Central Bank in September this year. However, if growth remains strong in the US and new jobs continue to get added, it may affect the odds of a reduction in inflation, further deferring the impending rate cut cycle that the markets are waiting for. The US added 175,000 jobs in April, a strong growth, al...
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S&P updates India’s outlook to “positive” after ten years and maintains its “BBB-” long-term rating.
29May By Online DeskNo Comments
Asia

S&P updates India’s outlook to “positive” after ten years and maintains its “BBB-” long-term rating.

Taking note of robust growth and rising quality of government spending, S&P Global Ratings on Wednesday revised outlook on India’s economy to ‘positive’ from ‘stable’. However, it retained the sovereign rating as ‘BBB Minus’. The rating has been on BBB- since January 30, 2007 (when it was upgraded from BB+). It has been on BBB-/stable since September 26, 2014 (it was placed on negative outlook on April 25, 2012).  Meanwhile, it is the first agency which has revised the outlook. Earlier in January, relying on a robust medium-term GDP growth outlook and sound external finances, Fitch affirmed India’s sovereign rating at ‘BBB Minus’ with stable outlook. ‘BBB Minus’ is the lowest investment grade rating offered. Rating upgrade Change in outlook means there is ...
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