World

Risk or opportunity? Outcomes for China amid worries of a US recession
8Aug By TheGreenZoneNo Comments
China, World

Risk or opportunity? Outcomes for China amid worries of a US recession

Global stock markets, particularly those in Asia, experienced a significant downturn on 5 August 2024, with the Nikkei 225 Index shedding 12.4%, its worst day since the 1987 Black Monday crash. A confluence of factors, including fears of a US recession, had triggered a massive sell-off in stock exchanges worldwide. The ripple effects of a potential US recession are profound and far-reaching. As the US is a major consumer and importer, a slowdown in the American economy can significantly dampen global demand, impacting export-oriented economies in Asia, which rely heavily on the US market. This is particularly concerning given that the US accounts for a substantial share of many Asian countries’ exports. According to the World Bank, the US accounts for more than 15% of China’s and South...
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Bangladesh’s economy is recovering from the epidemic, but it still faces chronically high inflation.
7Aug By TheGreenZoneNo Comments
Asia, World

Bangladesh’s economy is recovering from the epidemic, but it still faces chronically high inflation.

Bangladesh’s economy, which has been in recovery mode since the Covid-19 pandemic’s outbreak, has faced persistently high inflation that hit close to 10% in recent months. The resignation of Sheikh Hasina as the Prime Minister of Bangladesh and the subsequent takeover by the military could lead to further troubles for the economy that is also facing problems of liquidity and forex reserves. Even before the current political crisis, international agencies have called for structural reforms to help it take forward growth and maintain economic stability. However, the country has been one of the fastest growing economies in the world with high GDP per capita. As per its Budget, which was passed on June 30, the country is targeting an inflation rate of 6% and GDP growth rate of 6.75%. Th...
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A concise overview of the Venezuela crisis
6Aug By TheGreenZoneNo Comments
World

A concise overview of the Venezuela crisis

Tension in Venezuela is running high after a government-controlled electoral authority declared Nicolás Maduro the winner of the presidential election and handed him a third consecutive term in office. Not only has the election been described as "undemocratic" by independent observers, but the result announced by the National Electoral Council (CNE) has also been dismissed as fraudulent by the opposition. The European Union, the United States and a number of Latin American nations have refused to recognise the result, calling instead on the CNE to release detailed data from polling stations which the opposition says proves that its candidate, Edmundo González, won by a wide margin. Anti-government protests have flared up and hundreds of people have been arrested by the security f...
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No reconsideration of the policy on Chinese FDI: Goyal
31Jul By TheGreenZoneNo Comments
Asia, World

No reconsideration of the policy on Chinese FDI: Goyal

The government is not looking at a review of the cautious policy regarding foreign direct investment (FDI) from China though the Economic Survey had backed a a more open approach to capital inflows from the neighbour to meet the manufacturing ambitions of the country. “There is no rethinking at present to support Chinese investments in the country,” commerce and industry minister Piyush Goyal said here on Tuesday, in the first categorical statement on this from a senior government functionary. He said the Economic Survey was a report that always flags new ideas, though it is “not at all binding on the government.” The survey last week had suggested that welcoming FDI from China will help India better meet its ambition of having a greater share in the global va...
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Eurozone economy experiences some growth, but prognosis remains far from ideal.
31Jul By TheGreenZoneNo Comments
World

Eurozone economy experiences some growth, but prognosis remains far from ideal.

The euro zone's economy grew slightly more than expected in the three months to June, data showed on Tuesday, but a mixed underlying picture and a string of pessimistic surveys cloud the outlook for the rest of the year. The figures portray a bloc struggling to regain ground in global trade but continuing to enjoy a domestic rebound fuelled by higher real incomes and public spending. Output in the 20 countries that share the euro increased by 0.3 per cent in the second quarter of the year, Eurostat data showed, keeping up the pace from the previous quarter and just ahead of economists' expectations. Among large economies, France and Spain did better than expected, Italy held its ground, while German output unexpectedly contracted, strengthening fears about a lengthy crisis in a c...
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What role does toilet paper have in the Indian economy?
26Jul By TheGreenZoneNo Comments
Asia, World

What role does toilet paper have in the Indian economy?

The discussion on India's economy took a toilet break. Among the numerous mentions in the Economic Survey 2023-2024 of tax, trade deficit, fiscal prudence -- terms that some might find difficult to metabolise -- there was a very unusual mention of toilet paper. It tries to send a green message to the West, which might not be a smooth wipe. The Economic Survey 2023-24 presented by Nirmala Sitharamanmentioned toilet paper to underscore its rampant use in Western countries and its significant environmental implications. In the chapter dealing with climate change, the annual document also highlighted how substitute hygiene practices followed in Asian countries have been ignored by the West and how they can provide valuable insights into more sustainable use of resources. The que...
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Will 2024 See a Recession in Australia?
20Jul By TheGreenZoneNo Comments
World

Will 2024 See a Recession in Australia?

Australia’s recession risk has increased sharply throughout the middle of 2024 as the economy cools and inflation is still not under control. When the year began, inflation was in a downtrend, as the next chart shows. But as of July we can say with confidence that the trend did not continue. Inflation has now been hovering outside the RBA’s target range for months, with little sign of further falls. They want it to land between 2% and 3%, but it is instead heading in the other direction. Alarm Bells at RBA The stubborn persistence of inflation greater than 3% will alarm the Reserve Bank of Australia. “Inflation remained above the target range and had been a little higher than expected in prior months,” the RBA wrote in the minutes of their most recent Board meeting. ”Susta...
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<strong>Potential tariffs on Chinese EVs spark retaliation concerns and trade tensions in Canada</strong>
9Jul By Joe RodriguezNo Comments
Asia, China, World

Potential tariffs on Chinese EVs spark retaliation concerns and trade tensions in Canada

Canada has begun evaluating the impact of China’s alleged unfair trade practices on its electric vehicle (EV) market, leaving China unhappy and perturbed. This decision follows actions by the US and the European Commission, Canada’s international partners, which have recently responded to unfair competition in their EV industries. The purpose of the consultation, which will continue until August 1, is to assess the risk of Canada’s EV market being inundated with cheaper Chinese plug-ins. Experts have not ruled out the possibility of retaliation from China. If Canada imposes tariffs on Chinese electric vehicles, two trade experts predict that the world’s second-largest economy will forcefully retaliate. Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security, s...
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World economy’s “biggest risk” is geopolitical upheaval, according to ICCB
30Jun By TheGreenZoneNo Comments
World

World economy’s “biggest risk” is geopolitical upheaval, according to ICCB

The International Chamber of Commerce Bangladesh (ICCB) identified geopolitical tensions as the biggest risk to the global economy and recommended structural reforms to address those as Bangladesh looks to achieve middle and upper-middle-income status, according to a press release. ICCB President Mahbubur Rahman, presenting the Executive Board Report at the 29th Annual Council in Dhaka on Saturday, said the Russia-Ukraine war has caused an economic crisis in Bangladesh due to rising global commodity prices. The country's foreign currency reserves are depleting rapidly due to higher import bills. Middle East tensions are further straining the economy, he added. While Bangladesh's economy made a strong recovery from the Covid-19 pandemic, the ICCB president noted that the post-pand...
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China’s economy has grown to be worth US$2 trillion, but its industry is still in its infancy.
30Jun By TheGreenZoneNo Comments
World

China’s economy has grown to be worth US$2 trillion, but its industry is still in its infancy.

The final consumption value of products and services designed with China’s growing older population in mind – a sector that is not yet “fully mature” according to a white paper released this week – has reached about 14.4 trillion yuan (US$2 trillion), an indication of the already ballooning industry’s prospects for further expansion. Low-cost travel, e-commerce, live streaming by older influencers and sorghum wine – a high alcohol drink – are among that population’s top buys according to the white paper from Shanghai-based China Insights Consultancy and Chinese online education service QuantaSing Group. “With rapid socio-economic development, increases in life expectancy, and a decline in fertility rates, China is gradually transitioning into an ‘aged society,’” said the p...
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