World

27Jun By Online DeskNo Comments
Asia, Market, World

Meltdown Looms for the West Bank’s Financial Lifelines

With world attention focused on the Gaza war, another crisis is brewing in the Israeli-occupied West Bank, one that could also have grave implications for stability in Israel-Palestine. Palestinian banks may collapse after 1 July, unless Israel renews a waiver that allows Israeli banks to transact with them by that date. The waiver is critical for imports of essential goods into the Palestinian territories, payments of essential services and salaries, and all banking activity. Without it, the Palestinian economy could face a liquidity crisis and a meltdown with dire consequences for West Bank Palestinians – and maybe for Israel as well.  Bezalel Smotrich, Israel’s far-right finance minister, issued a three-month waiver for transactions in March, but indicated that he did...
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27Jun By Online DeskNo Comments
Asia, China, Market, World

China Mid-year Outlook 2024 : Waiting for policy

What we think This July there are two important meetings in China that may provide further insight into the macro outlook: the Third Plenum and the Politburo meeting. The two policy areas we’ll closely watch are domestic demand and fiscal reform. The economy appears to be at an inflection point. The resilience of the manufacturing sector is a bright spot, while other parts of the economy look mixed, but could start to improve. Investment implications We retain a relatively cautious view on offshore China markets. The downside is limited, but the upside is capped by a mixed macro backdrop and earnings that have yet to show meaningful upside. We expect the A-share market to be relatively more resilient thanks to lower exposure to geopolitical risks (and foreign outflows), limited F...
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27Jun By Online DeskNo Comments
Asia, China, Market, World

China and global development: what to read in June 2024

Welcome to the June 2024 edition of our China and Global Development round-up. This month, I have curated a selection of resources that delve into the Belt and Road Initiative’s role in promoting structural transformation, the evolving dynamics of Africa-Asia relations, the EU and China’s distinct development approaches in Africa, and the New Development Bank. Read 1: The Belt and Road and dynamics of structural transformation Along with my colleagues Lorena Lombardozzi and Rhys Jenkins, I have edited a special issue on “China’s Belt and Road Initiative and dynamics of structural transformation”. This project stemmed from our observation that while there is a lot of discussion about the Belt and Road Initiative (BRI) and international development, they rarely engag...
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Sri Lanka’s Journey From Economic Crisis To Stabilization: From Turmoil To Triumph
27Jun By Online DeskNo Comments
World

Sri Lanka’s Journey From Economic Crisis To Stabilization: From Turmoil To Triumph

Sri Lanka, an island nation south of India in the Indian ocean, has faced immense challenges over the past decades, including a brutal civil war that lasted thirty years, followed by a cascade of economic crises, political instability, and social unrest. The lingering echoes of conflict, combined with the devastating impacts of natural disasters, rising debt, and the global COVID-19 pandemic, have further strained the nation's recovery efforts. Despite these hurdles, Sri Lanka stands on the brink of a new era, ready to embark on a journey of recovery and prosperity. Aquarius Horoscope For Today, June 29, Saturday - Innovation Leads Your Way! A significant milestone in Sri Lanka's path to economic recovery has been achieved with the finalization of a debt restructuring deal with its bil...
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June factory activity dips anticipated to be prolonged in China: Reuters Poll
27Jun By Online DeskNo Comments
World

June factory activity dips anticipated to be prolonged in China: Reuters Poll

IN BRIEF Japan is adjusting its economic relationship with China to reduce dependency, driven by rising labour costs, geopolitical concerns and changes in supply chains rather than by an intention to fully decouple economically. Despite shifts in business strategies, their mutual economic interdependence remains significant, with commitments to economic integration seen in regional agreements like the CPTPP and RCEP, and the continued growth of e-commerce trade. Japan is one of the countries most affected by geopolitical competition between the United States and China. Although the economies of Japan and China seem to be on the first track of economic decoupling in many ways as a result, they are actually only experiencing a period of structural economic change. Contrary to the p...
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Which way is the Chinese economy going?
27Jun By Online DeskNo Comments
World

Which way is the Chinese economy going?

Earlier this year, China announced an ambitious goal of reaching 5% economic growth in 2024. Today, nearly seven months into the year, economists and government officials say they are optimistic that China can reach its goal. “We have the confidence and capability to achieve the growth target,” Chinese Premier Li Qiang said at the World Economic Forum’s Annual Meeting of the New Champions (AMNC), a gathering of top global voices from government, business, civil society and academia held in Dalian, People’s Republic of China. “China’s large market is open,” Li stated. “The rapid growth of new industries and new drivers has buttressed the sound and sustained development of the Chinese economy.” Peng Sen, the President of the China Society of Economic Reform, added at the ...
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26Jun By Online DeskNo Comments
Asia, China, Market, USA, World

China and the renminbi dominate US foreign exchange concerns

Unexciting Treasury report should focus more on dollar strength The US Treasury released its latest foreign exchange report last week. It has not garnered much excitement. Dollar strength poses a bigger foreign exchange question for the current international economic juncture than other currencies, but the report does not devote enough discussion to this. Further, the external positions of key surplus countries raise more nettlesome structural bugs than foreign exchange developments. Nonetheless, several salient themes are well explored, while other parts miss their mark. What are the hits and misses? The hits The first hit is the Treasury’s discussion of the Chinese economy and external position. The report documents China’s efforts to resist renminbi depreciation a...
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Indonesia is continuously looking for a solution to its housing problem.
26Jun By Online DeskNo Comments
World

Indonesia is continuously looking for a solution to its housing problem.

The high demand for housing is not being met in Indonesia due to a lack of supply. For Indonesian people, a house can only be a house if it is on the ground — not in a flat or apartment. This increases market demand for land and property, which drives prices to increase. But rising prices are not being matched by proportionate income increases. In response to this difficulty, the Indonesian government established the Public Housing Savings Management Agency — Tapera — in 2016. Due to socioeconomic developments, the government updated this regulation to now compel all Indonesian workers to participate in the Tapera program, with a monthly contribution of three per cent deducted from their salaries. Salary deductions to fund Tapera enraged the public. Employers were also unhappy, as t...
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25Jun By Online DeskNo Comments
Asia, Market, World

Revenue Statistics in Asia and the Pacific 2024

This annual publication compiles comparable tax revenue statistics for 36 economies, including Armenia, Australia, Azerbaijan, Bangladesh, Bhutan, Cambodia, People’s Republic of China, the Cook Islands, Fiji, Georgia, Hong Kong (China), Indonesia, Japan, Kazakhstan, Kiribati, Korea, Kyrgyzstan, Lao People’s Democratic Republic, Malaysia, the Maldives, the Marshall Islands, Mongolia, Nauru, New Zealand, Pakistan, Papua New Guinea, the Philippines, Samoa, Singapore, the Solomon Islands, Sri Lanka, Thailand, Timor-Leste, Tokelau, Vanuatu and Viet Nam. Additionally, it provides information on non-tax revenues for 22 of the 36 economies. The publication applies the OECD Revenue Statistics methodology to Asian and Pacific economies, facilitating consistent comparison of tax levels and structure...
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25Jun By Online DeskNo Comments
Asia, China, Market, USA, World

OECD Economic Surveys: United States 2024

The United States economy has continued to expand at a solid pace and price pressures have eased somewhat. However, a sustained fiscal deficit has contributed to raising public debt as a share of GDP to its highest level since World War II, with a further substantial increase in prospect over coming decades as the population ages. To put the public finances on a more sustainable path, a multi-year fiscal adjustment should be enacted that achieves savings on pensions and healthcare and raises taxation, including on capital incomes. A more medium-term oriented and less complicated federal budgeting process would support this. At the same time, economic growth would benefit from productivity enhancing reforms that promote competition, including through maintaining international trade opennes...
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