World

February, India’s economy continues to grow rapidly
Asia, World

February, India’s economy continues to grow rapidly

The Indian economy, which expanded at a four-month high in January, continued to strengthen in February, seeing accelerations in both manufacturing and services sectors during the month. While services sector output climbed to a seven-month high in February, manufacturing sector output reached a five-month high, firming India’s position as one of the fastest-growing major economies. The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, climbed to 61.5 in February from a revised reading of 61.2 for January—well above the 50-point threshold that differentiates expansion from contraction. The seasonally adjusted index measures month-on-month change in the combined output of India’s manufacturing and service sectors. “Growth improved in both ...
Following a “messy” quarter caused by the China issue, HSBC shares fell.
China, World

Following a “messy” quarter caused by the China issue, HSBC shares fell.

HSBC was stung by China’s economic slowdown after a “messy” quarter including a $3bn (£2.4bn) writedown sent its share price tumbling by 8pc in one of the worst falls in the bank’s history. China’s crippling economic woes prompted the Asia-focused lender to slash the value of its investment in Bank of Communications (BoCom), one of China’s “Big Five”. The devaluation of the Argentine peso in December because hyperinflation in the country also shaved $500m from profits. This contributed to an 80pc fall in fourth-quarter profits to $1bn, marring an annual record as gains for the entire year rose to $30.3bn. Citigroup analyst Andrew Coombs said the final quarter was “messy” due to the one-off impairments, with the share price fall wiping £10bn from the bank’s value. HSBC chief...
China is under increasing pressure to make significant policy changes to improve its economy.
China, World

China is under increasing pressure to make significant policy changes to improve its economy.

The start of the year saw Chinese stocks tumbling to five-year lows on growth concerns and deflation deepening to levels unseen since the global financial crisis, prompting comparisons with the 2015 turmoil that forced policymakers into action. As the annual meeting of China's parliament approaches next month, its leaders are facing the greatest pressure in almost a decade to take bold policy decisions that safeguard the economy's long-term growth potential. The start of the year saw Chinese stocks tumbling to five-year lows on growth concerns and deflation deepening to levels unseen since the global financial crisis, prompting comparisons with the 2015 turmoil that forced policymakers into action. "The last time the Chinese leadership faced this kind of pressure was in 2015," sa...
The economic decline in Bangladesh and the Rohingya crisis
Asia, World

The economic decline in Bangladesh and the Rohingya crisis

In August 2017, a deadly ethnic clearance operation, backed by the Myanmar military against the minority Rohingya (Muslim) population in Rakhine state, began the displacement of thousands of Rohingyas. By the end of 2017, around 745,000 people had fled to Cox’s Bazar, a district in southeast Bangladesh. Bangladesh, though not a signatory to the 1951 refugee convention, and despite being a country with a high population density, sheltered and welcomed these forcibly displaced Myanmar nationals on an ad hoc basis. By April 2019, more than 900,000 Rohingyas were living in coastal Bangladesh, and today about 90% of the Rohingya population lives in Bangladesh. With limited financial resources, Bangladesh, in collaboration with donor and global aid bodies, has worked hard to provide shelt...
Talks on an economic and trade cooperation agreement between India and Sri Lanka move further.
Asia, World

Talks on an economic and trade cooperation agreement between India and Sri Lanka move further.

New Delhi, Feb 21 (KNN) India and Sri Lanka are poised to advance discussions on the Economic and Trade Cooperation Agreement (ETCA), with upcoming bilateral talks set for later this month and in March. This development marks significant progress for both nations, as previous attempts to finalise the pact faced obstacles, including opposition from certain worker unions and nationalist politicians in Sri Lanka. The ETCA negotiations, which were initiated during the Maithripala Sirisena-Ranil Wickremesinghe administration, saw 11 rounds of discussions between 2016 and 2019 but failed to reach fruition due to protests in Sri Lanka. However, under President Wickremesinghe's leadership, discussions resumed last year, signalling a renewed commitment to bolstering economic ties between ...
New investment to support India’s economy’s next phase of expansion as inflation is expected to level off: RBI Bulletin
World

New investment to support India’s economy’s next phase of expansion as inflation is expected to level off: RBI Bulletin

The Indian economy continued to sustain the momentum achieved in the first half of 2023-24, going by high-frequency indicators and the expectations of a fresh round of capex by the corporate sector are likely to fuel the next leg of growth, said the Reserve Bank of India (RBI) in its February Bulletin released on Tuesday. The funds raised through external commercial borrowings (ECBs) for capex and initial public offerings (IPOs) remained robust during the second and third quarters of the current financial year, though their levels were lower than such resources raised during Q1 2023-24. The central bank also added in its monthly State of the Economy article that India's inflation expectations may stabilise and edge down going ahead but renewed pressures from cereals and proteins can...
Maldives: Indebtedness and Reliance
World

Maldives: Indebtedness and Reliance

As the distance between Maldives and India widens, with the latter being asked to withdraw its uniformed personnel stationed in the former, questions are being asked about how Maldives will manage without India’s help on the economic and regional security fronts.
World

Reaching Extraordinary Development: Unrealities and Myths

Companies in India can be a powerful engine for driving economic goals. Here’s how they can realize extraordinary growth. As India anticipates a century of independence in 2047, it is committing to sustainable and inclusive growth in its goal of becoming a developed economy. This ambition is likely to see 600 million jobs created, income rising sixfold to over $12,000 per capita and GDP growing to $19 trillion.1 In realizing this goal, the private sector is an indispensable partner. We set out to understand how Indian enterprises can achieve the extraordinary growth necessary for them to propel India towards its centennial aspirations. We analyzed the performance of 837 Indian publicly traded companies between 2012 and 2022.2 The results of the research were clear. Most companies pe...
Leader of China, Xi Jinping, is struggling with a $7 trillion recession as the nation’s debt levels rise, real estate collapses, and markets retreat more than 21% from their 2021 highs.
China, World

Leader of China, Xi Jinping, is struggling with a $7 trillion recession as the nation’s debt levels rise, real estate collapses, and markets retreat more than 21% from their 2021 highs.

As China grapples with the fallout from a $7 trillion stock decline, officials are gearing up to brief President Xi Jinping on measures to stabilize the market. This move signifies Beijing’s urgency to restore investor confidence and halt the market’s slide, which has erased a significant value from Hong Kong and China equities since their 2021 peaks. The Shanghai Composite Index, for example, is down over 21% from its high in December 2021. The downturn has been attributed to a variety of factors, including regulatory crackdowns, geopolitical tensions, real estate defaults and internal economic pressures, prompting a call for decisive action to prevent further damage to consumer confidence, especially as the country approached the Lunar New Year holiday. China’s real estate sector ...
Year of the Dragon: China is at a turning point in its efforts to boost the economy
China, World

Year of the Dragon: China is at a turning point in its efforts to boost the economy

Analysts say Beijing needs to roll out measures to stimulate greater domestic consumption amid slowing growth. China last year narrowly beat its economic growth target of 5 percent, one of its lowest benchmarks in decades. Looking ahead, analysts expect the economy to face stiff headwinds in the Year of the Dragon. Against the backdrop of a crisis-stricken property market, subdued export earnings and crackdowns on private industry, international investors are pulling out of Chinese stocks at record rates. With business sentiment faltering, economists broadly agree that Beijing needs to roll out measures to stimulate more domestic consumption. While some analysts are calling for radical measures to jolt China’s economy, expectations are subdued owing to Beijing’s aversion to br...