World

Sri Lanka is mired in unstable political and economic conditions.
9Feb mmBy Michael SmithNo Comments
Asia, World

Sri Lanka is mired in unstable political and economic conditions.

In 2023, Sri Lanka faced a complex interplay of economic and political challenges. Although fuel and food queues have disappeared, the dire impact of the economic crisis was inescapable. Sri Lanka’s economic outlook was initially grim, with a 3.1 per cent GDP contraction in the second quarter of 2023 and a projected 2 per cent shrinkage for the year. The first quarter saw an alarming 11.5 per cent contraction, highlighting the severity of the crisis. Despite a peak inflation rate of 70 per cent in September, it dropped to 3.4 per cent in November due to subdued demand, offering temporary relief for poorer households The World Bank later revised its forecasts, noting Sri Lanka’s progress in reducing inflation and benefits accruing from tourism revenue and currency appreciation. The B...
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IMF cautions that Maldives faces a serious danger of foreign debt crisis.
7Feb mmBy Joe RodriguezNo Comments
World

IMF cautions that Maldives faces a serious danger of foreign debt crisis.

The Maldives is at a high risk of external and overall debt distress, the International Monetary Fund (IMF) warned on Wednesday but did not provide any details about the debt. It said the country's fiscal and external vulnerabilities have increased, calling for urgent policy adjustment. "Maldives remains at high risk of external and overall debt distress," said IMF staff teams in a report prepared after a visit to the country. The global financial institution said that without significant policy changes, the archipelago nation's overall fiscal deficits and public debt are projected to stay elevated. "Amid elevated fuel prices coupled with continued strong import demands, the current account deficit in 2024 is projected to remain large, albeit gradually narrowing over the medium term." ...
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Pakistan’s Elections Are Conducted Amid Crisis
7Feb mmBy Walter ParezNo Comments
World

Pakistan’s Elections Are Conducted Amid Crisis

The highlights this week: Pakistan readies for elections that will follow the usual script, an Indian government spokesperson affirms the country’s engagement with the Taliban, and a Sri Lankan cabinet minister resigns amid a health care scandal. Pakistan’s Elections Will Follow the Usual ScriptA top Pakistani political party is subjected to a harsh crackdown ahead of national elections. Its members are harassed, abducted, and arrested. Media outlets are pressured not to cover any of the party’s activities, and critics of this repression are silenced. The party’s top leader is given a long jail sentence on the eve of the polls. This was the situation for the Pakistan Muslim League-Nawaz (PML-N) in 2018. Today, the PML-N is contesting Pakistan’s Feb. 8 elections with no problems, and...
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Pakistan’s troubled economy is being turned around by old dreamers
6Feb mmBy Michael SmithNo Comments
World

Pakistan’s troubled economy is being turned around by old dreamers

Pakistani voters head to the polls on Thursday amid a deep-seated economic crisis. Inflation is hovering at 30 percent, close to 40 percent of people live below the poverty line, and the debt-to-gross domestic product (GDP) ratio has climbed to 72 percent. Pakistan’s new government will have to contend with these and an ageing public infrastructure. “We have power outages every day for two hours,” says Muhammad Waqas, a janitor from Islamabad. “In the summer, when it’s hot, you sit idly and suffer.” As with other state-owned firms, the inability of successive governments to invest in Pakistan’s National Transmission and Despatch Company has left it prone to failure. More recently, the COVID-19 pandemic and energy supply challenges dampened Pakistan’s growth prospects and constrai...
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To boost its economy, Sri Lanka and Thailand negotiate a free trade agreement.
3Feb mmBy Walter ParezNo Comments
Asia, World

To boost its economy, Sri Lanka and Thailand negotiate a free trade agreement.

Thailand and Sri Lanka have signed a Free Trade Agreement (FTA), a move Sri Lanka hopes will help it emerge from its worst financial crisis in decades. “This move aims to enhance market opportunities, with negotiations covering various aspects such as Trade in Goods, Investment, Customs Procedure, and Intellectual Property Rights,” read a statement published on Saturday by the Sri Lankan president’s media department. The island nation has been renewing a focus on trade deals to foster economic growth and help its battered economy, which is estimated by the World Bank to have contracted 3.8 percent last year after a severe foreign exchange crunch plunged it into a wider financial crisis. A delegation headed by Thai Prime Minister Srettha Thavisin arrived in Colombo on Saturday to ...
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Managing Bangladesh’s economic development
1Feb mmBy Brian ThompsonNo Comments
World

Managing Bangladesh’s economic development

Bangladesh, since its liberation in 1971, has undergone a profound economic transformation, evolving from one of the world’s most impoverished nations to one of the fastest-growing economies. Despite significant progress in indicators such as the Human Development Index (HDI) and Sustainable Development Goals (SDGs), recent external shocks, particularly from the Covid-19 pandemic and the Russia-Ukraine conflict, have brought attention to the vulnerabilities in the nation’s economic landscape. In the face of adversity, Bangladesh showcased resilience by achieving GDP growth of 3.4% in 2020, outperforming many developing nations and earning accolades for its government’s adept management. However, the subsequent move to seek a US$4.5 billion loan from the International Monetary Fun...
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1Feb mmBy Mike TrudellNo Comments
Asia, World

Leading organizations confirm that the Indian economy will rise rapidly in FY24.

The RBI's Survey of Professional Forecasters (SPF) is aligning with the positive trend, upgrading India's real GDP growth from 6.4 per to 7.0 per cent. India is poised to remain the fastest-growing major economy in the world in FY24, according to a poll of economists conducted by news agency Reuters. The economists polled by the news agency also suggested that inflation may not surge again. It may be noted that the Indian economy has performed better than expected in the first two quarters of the ongoing financial year, backed by strong spending by the government as it prepares for the all-important Lok Sabha polls later this year. While infrastructure continues to be a key area of focus for the government heading into the Interim Budget 2024 on February 1, some issues in the bac...
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<strong>Elon Musk: China’s EV dominance a threat to local players</strong>
29Jan mmBy Mike TrudellNo Comments
China, Market, World

Elon Musk: China’s EV dominance a threat to local players

Tesla maker Elon Musk has been critical of China’s rising authority in the EV market. He has called for global trade barriers in the EV market otherwise Chinese player BYD will demolish the local players. Musk’s comments are in response to “unimaginable” performance by Warren Buffett’s backed Chinese automaker BYD. BYD has surpassed Tesla as the world’s top-selling EV company in the last quarter. Tesla has been marred by slowing sales in the United States even after a price cut in 2023, while BYD’s cheaper EVs has propelled the Chinese automaker at the top spot. Musk while addressing a group of analysts accepted the competitive nature of Chinese carmaker BYD and predicted its success outside China, unless there are suitable trade barriers in place. He feels without any trade barrier...
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What economic future does Bangladesh face?
22Jan mmBy Brian ThompsonNo Comments
World

What economic future does Bangladesh face?

In 2023, Bangladesh experienced the worst macroeconomic instability in recent years. While until 2019, the country was cited as a successful case of macroeconomic stability, the Covid-19 pandemic inflicted a significant scar in 2020 and 2021. While the economy went through a recovery process in late 2021 and early 2022, the war in Ukraine and resultant global supply shock triggered domestic macroeconomic instability, which persists. The crisis has affected the economy through various channels. The monthly average inflation rate (January-November) increased from 7.6 percent in 2022 to 9.5 percent in 2023. Export earnings increased by only 2.4 percent in January-November 2023 compared to the same period in 2022. Remittance growth through formal channels was only 1.7 percent in January-No...
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India’s fintech boom: A roadmap for inclusion and growth in the budget?
22Jan mmBy Joe RodriguezNo Comments
Asia, World

India’s fintech boom: A roadmap for inclusion and growth in the budget?

As India's vibrant fintech industry gears up for another leap, the upcoming Union Budget 2024 carries immense weight. On February 1st, Finance Minister Nirmala Sitharaman's decisions will shape the trajectory of this rapidly evolving sector, impacting not just millions of financial service providers but also the broader quest for financial inclusion and economic growth. India Fintech Credit Fund: A dedicated fund offering affordable financing to fintech companies, particularly small and medium players, could unlock vital growth opportunities. Tax breaks for financial inclusion: Incentivising fintechs operating in underserved areas is crucial to bridging the financial gap and empowering marginalized communities. GST rationalization measures would further ease this journey. Empower...
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