Asia

Over the past decade, India has swiftly risen as a dominant force within the global economic landscape. Positioning itself as one of the fastest-growing major economies in the world, India's burgeoning prowess is predicated on a myriad of factors, ultimately attesting to its journey as an emerging global economic powerhouse. The Onset of the Transformation: A Time of Economic Flux At the onset of the past decade, India's economy was in a state of volatility. Thegrowth was stifled shrinking global demand and the increasing trade deficits. However, the resilient Indian economy quickly sprung back in action, chiefly driven by dynamic policy changes, robust domestic demand, and advancements in technology. Technology, A Critical Catalyst Technology has been a crucial catalyst in th...

When property markets go bust, banks often follow—most famously in the U.S. in 2008. Now China is in the midst of its own property blowup, with major developers teetering and housing sales—in floor space terms, year-to-date—at levels last seen in 2015. Does that mean a financial crisis is in the making? Not necessarily, thanks to some surprising quirks of China’s housing market and Beijing’s heavy hand in the financial system. But the cost will likely be serious damage to bank balance sheets, impairing their ability to support growth for years. Moreover, widespread financial turbulence can’t be ruled out—especially if housing and land prices fall too fast—or if Beijing doesn’t do more to support cash-strapped local governments and small lenders. Property is the heart of China’...

Sri Lanka's economy shrank 3.1% in the April-June quarter, official data showed on Friday, as the country struggles to claw out of its worst financial crisis in decades. The downturn was driven by high inflation, a depreciating currency and lower purchasing power, the Census and Statistics Department said in a statement. The agriculture sector grew 3.6% from a year earlier, but output from industries contracted 11.5% and services dropped 0.8%, the department said. ri Lanka's central bank projects that gross domestic product (GDP) will shrink by 2% this year, having contracted 7.8% in 2022, after the island's economy fell into a severe foreign exchange crisis that decimated growth. The economy contracted 11.5% in the first three months of this year but activity has gradually st...

As it struggles to secure funds to maintain its operations, Pakistan International Airlines (PIA) has reportedly resorted to grounding several aircraft.  Dawn reports that over the next few months, PIA's core functions and non-core assets are expected to be put up for sale. Just last week, Pakistan's Ministry of Aviation issued a stern warning and told the federal government that the airline is grappling with a severe cash flow crisis.  This, the ministry said, has led to arrears with creditors, aircraft lessors, fuel suppliers, insurers, international and domestic airport operators, and even the International Air Transport Association (IATA). Also read | 'Landmine' explosion in Pakistan's Peshawar injures 11, one FC personnel killed Due to this, Pakistan's n...

Pakistan’s risk of defaulting has receded for now, but it needs more help from the IMF and foreign benefactors for a sustainable economic recovery. In the first half of 2023, Pakistan appeared to be moving toward a catastrophic economic default. An IMF loan program Pakistan entered into in 2019 had gone off track after the Fund found Islamabad’s commitment to reform lacking, leading to a suspension of loan disbursements. The derailment of the IMF program resulted in a significant drop in the country’s foreign exchange reserves — at one point this year, reserves could only cover about two weeks' worth of imports due to concurrent debt repayment pressure. To avoid defaulting, the government imposed stringent import restrictions in an attempt to control dollar outflows. That caused a majo...