Asia

14Oct By TheGreenZoneNo Comments
Asia, China, Market

The pendulum of Chinese economic policy has swung in favor of stimulus, but moderate expectations are advised.

Policymakers in Beijing have spent the past three weeks trying to convince the world that they are determined to deliver meaningful support to China’s sagging economy.  Since late September statements have come from the central bank, which promised to cut interest rates, release liquidity, and provide funding to securities firms; from the politburo, which said it wanted to stabilize the real estate market, boost the capital market and shift towards looser fiscal and monetary policy; from the government’s main planning body, which promised a package of policies to support domestic demand; and from the finance minister himself, who at the weekend committed to issue more debt to recapitalize banks, support local governments and aid unhappy consumers. Though details have been scant...
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China’s stimulus plan targets its largest debt wall.
14Oct By TheGreenZoneNo Comments
Asia, China

China’s stimulus plan targets its largest debt wall.

Chinese policymakers trying to fire up growth in the world’s second-largest economy appear intent on smashing through a wall of debt, opens new tab that poses a systemic financial risk and on not repeating past mistakes in delivering fiscal stimulus. That is some consolation for the fact that Beijing, so far, has mapped out only half of a plan. At a highly anticipated press conference on Saturday, the Ministry of Finance signaled it is ready to significantly boost spending but it declined to say by how much. The lack of a concrete number will disappoint those looking for quick fixes; Chinese benchmark stock indices including the Hang Seng (.HSI), opens new tab opened largely unmoved on Monday. To spur consumption, economists reckon the People’s Republic may need to spend up to 10 trill...
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13Oct By TheGreenZoneNo Comments
Asia, China, Market, World

India starts to reconcile its economic ambitions with security fears about China.

Indian Prime Minister Narendra Modi's government tightened scrutiny of foreign direct investment amid security concerns during the COVID-19 pandemic, largely curtailing China's economic influence. But as India aspires to become the world's third-largest economy by 2029 and a developed nation by 2047, it must grapple with balancing economic ambitions with security concerns and is beginning to cautiously accept Chinese investments in sectors such as electronics manufacturing to boost local production capabilities. Since first assuming office in 2014, Prime Minister Narendra Modi’s government has aimed to increase the share of manufacturing in India’s GDP. In 2014, the government launched the Make-in-India campaign, which pushed for more manufacturing and invited foreign direct ...
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As the world’s oil supply surges, Pakistan’s gasoline situation worsens and another price increase is imminent: Report
12Oct By TheGreenZoneNo Comments
Asia

As the world’s oil supply surges, Pakistan’s gasoline situation worsens and another price increase is imminent: Report

Pakistan is gearing up for another fuel price hike as the nation grapples with severe economic challenges. The impending rise in petrol and diesel prices comes in the wake of escalating global crude oil rates, as reported by The Tribune. The increase in petroleum prices is primarily driven by the soaring international market rates, exacerbated by the ongoing crisis in the Middle East. Pakistan’s reliance on imported oil, coupled with rampant smuggling and illegal trade, has left the country vulnerable, with limited control over its energy security, the report added. Over the past two weeks, international prices for petrol have surged by about $2.80 per barrel, while high-speed diesel (HSD) prices have spiked by approximately $7 per barrel, according to The Tribune. In response, t...
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Here are four factors that make the cash-strapped economy of Pakistan the subject of international attention.
12Oct By TheGreenZoneNo Comments
Asia, Market

Here are four factors that make the cash-strapped economy of Pakistan the subject of international attention.

Pakistan's economic crisis deepens as the International Monetary Fund (IMF), a global financial agency, eyes implementing policy reforms in the South-Asian nation. This is the latest development in Pakistan's economic crisis row as the nation tries to borrow its way out of its debt situation. IMF's row with Pakistan to improve its economic situation has been spread over several events. The nation aims to reduce expenditures, increase the tax-to-GDP ratio, tax non-traditional sectors like agriculture and real estate, limit subsidies, and transfer some fiscal responsibilities to provinces. The news agency PTI reported on Saturday, October 12, quoting a local news portal, The News International. It said that the International Monetary Fund (IMF) has focuse...
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10Oct By TheGreenZoneNo Comments
Asia, Market, World

According to the World Bank, implementing reforms is still essential for sustained economic recovery and poverty reduction.

Pakistan’s economy has continued to stabilize from the recent economic crisis, with growth recovering to 2.5 percent in the fiscal year ending June 2024, says the World Bank in its latest country economic update. Released today, the Pakistan Development Update: The Dynamics of Power Sector Distribution Reform, finds that following recession in FY23, economic activity strengthened in FY24 reflecting strong agricultural output, lower inflation, prudent macroeconomic measures, and reduced political uncertainty. But this level of growth is not sufficient to bring down poverty rates, which increased from 40.2 percent in FY23 to 40.5 percent in FY24. “Pakistan’s stabilizing economy is on a path of recovery. To sustain and strengthen that positive momentum, steady implementa...
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10Oct By TheGreenZoneNo Comments
Asia, China, Market, World

China’s economy is predicted by the World Bank to slow down in 2025.

According to World Bank estimates, China’s GDP growth rate next year will decrease to 4.3% compared to the projected 4.8% in 2024. This is stated in the institution’s new economic forecast for the Asian region. China’s economic slowdown in 2025 is expected amid continued weakness in the real estate market, low consumer and investor confidence, as well as structural challenges such as an ageing population and global tensions, it said. Expectations for 2024 rose by 0.3% compared to the bank’s April forecast. As CNBC notes, this reflects Beijing’s recent introduction of a series of stimulus measures that boosted investor confidence and sparked a stock market rally that has since stalled. Economies in the rest of East Asia and the Pacific region will grow from 4.7% in ...
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8Oct By TheGreenZoneNo Comments
Asia, China, Market

When stimulus news is disappointing, the China stock surge stalls.

A stock market rally in China has fizzled out as a highly-anticipated announcement on plans to boost the country's ailing economy disappointed investors. Shares had jumped by over 10% as trading restarted after the Golden Week holiday but fell back after a news conference by the country's economic planners. After a volatile day of trading, the Shanghai Composite Index in mainland China closed 4.6% higher, while the Hang Seng in Hong Kong slumped by 9.4%. Investors had been hoping for more information about how the government plans to support economic growth but the announcement gave little in the way of details. The chairman of China's National Development and Reform Commission Zheng Shanjie said he is "fully confident" the country will achieve its full-year economic and socia...
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Some indications that the Indian economy may be slowing down
8Oct By TheGreenZoneNo Comments
Asia, Market

Some indications that the Indian economy may be slowing down

The Indian economy is showing signs of slowing down, with high-frequency data released last week suggesting GDP growth could again come below 7 per cent in the Jul-Sep quarter of 2024-25. In Apr-Jun, India’s GDP growth had fallen to a five-quarter low of 6.7 per cent. A series of weak numbers emerged on the last day of September, with the central government's finances showing its capital expenditure was down 30 per cent on-year in August and 19.5 per cent in Apr-Aug. Core sector data, also released on Sep 30, showed output contracted by 1.8 per cent on year in August, the worst performance in 42 months. The numbers have continued to trend downwards: the manufacturing and services Purchasing Managers’ Index for September, while still in expansionary territory, fell to eight and 10-mo...
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The European Union decides to levy taxes on electric cars made in China.
5Oct By TheGreenZoneNo Comments
Asia, China, Market, World

The European Union decides to levy taxes on electric cars made in China.

The European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs). “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement. The EU first announced that it would slap higher tariffs on Chinese electric vehicle imports in June, on the grounds that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to electric vehicle producers in Europe. Duties were also disclosed for individual companies, depending on the extent of their cooperation with the probe. Provisional duties were put in place from early Jul...
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