Philippine economy seen to grow by 4.5 pc
The Philippine economy is foreseen to grow by at least 4.5 percent this year and 5.5 percent in 2022, according to an Asian Development Bank report released Wednesday.
Public spending on infrastructure and social assistance, better pandemic response, substantial progress in vaccination rollout and a steady recovery in global economy will boost growth this year and the next, according to the Asian Development Outlook 2021.
Household spending, exports and remittances are also expected to grow this year, ADB Philippines Country Director Kelly Bird told reporters in a virtual briefing.
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US population time bomb muddles economic race with China
The U.S. marked its slowest population growth since the Great Depression over the last decade, highlighting the demographic challenge the country will face in its rivalry with China as its citizens become older and less diverse.
The U.S. population increased to more than 331 million in 2020, growing 7.4 percent from 10 years earlier, for the lowest recorded rise since 1940, according to the data released by the Census Bureau on Monday.
The U.S. slowdown comes at a time when its supremacy on the world stage is facing a serious challenge from China. The winner of this race is likely to be determined by their economic strength, which directly benefits from population growth.
White Americans are expected to become a minority in the U.S. toward the middle of this century. Concern over shifting demographics was one of the driving forces that led to the election of former President Donald Trump in 2016. But fewer immigrants resulted in slower population growth and less diversity, which have historically been crucial to the competitiveness of the American economy.
Roughly 16 percent of the U.S. population is aged 65 or above, according to the United Nations. Though this is a smaller percentage than the almost 30 percent in Japan or the roughly 20 percent in many other advanced economies, the U.S. for the past decade or so has failed to reach replacement-level fertility — the average number of children each woman needs to have throughout her lifetime to maintain current population levels.
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India’s GDP to grow at 11pc this fiscal, says ADB
The Indian economy is projected to grow at 11 percent in the current financial year amid the “strong” vaccine drive, said ADB on Wednesday, while cautioning that the recent surge in COVID cases may put the country’s economic recovery at “risk”.
“India’s economy is expected to grow 11 percent in fiscal year (FY) 2021, which ends on March 31, 2022, amid a strong vaccine drive,” ADB said in its flagship Asian Development Outlook (ADO) 2021 released on Wednesday.
However, the Asian Development Bank (ADB) cautioned that the surge in COVID-19 cases may put the country’s economic recovery at risk.
For FY2022, India’s GDP is expected to expand at 7 percent, it added.
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Auto sector stimulus not enough for Indonesia economy
The Indonesian government’s stimulus for the automotive sector is not sufficient to revive the economy, an expert said on Tuesday.
“It is necessary to add cash-intensive programs,” Mohammad Faisal, an economist at the Center of Reform on Economics, said during a virtual discussion.
Since the start of April, Indonesia has cut luxury sales tax on sales of some new cars to boost its automotive industry.
Faisal said the move could increase car sales but the growth was unlikely to be sustainable.
“That means car sales will decline when the tax discount finishes at the end of this year and things will return to how they were before this stimulus,” he said.
Along with the domestic market, the government needs to focus on automotive exports, he said, pointing out that Indonesia is lagging far behind in the field compared to neighboring Thailand.
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Japan approves world’s biggest free-trade deal
Japan’s parliament approved joining the world’s largest free-trade deal, the Regional Comprehensive Economic Partnership (RCEP), on Wednesday as signatories aim for it to come into effect from the start of next year.
It comes a day after China called for the deal to be ratified to shore up the economy in the Asia-Pacific.
The China-backed RCEP was signed in November last year and included 10 members of the Association of Southeast Asian Nations (Asean) plus China, Japan, South Korea, Australia and New Zealand. By eliminating tariffs on 91 percent of goods, the RCEP will create a free-trade zone covering nearly one-third of the world’s economy, trade and population.
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Vietnam’s economic prospects under the new leadership
Vietnam has witnessed a transition to new leadership with new President Nguyen Xuan Phuc, Prime Minister Pham Minh Chinh and Chairman of National Assembly Vuong Dinh Hue taking charge. The third time re-elected general secretary Nguyen Phu Trong made it clear that there will be structural reforms and the anti-corruption drive would continue. This is meant to cleanse party of corrupt cadres and provide corruption free environment in the country. The Covid-19 and the recovery from the economic setback that was brought about by this pandemic, is now incrementally reversed. Mr. Trong has highlighted in his opening speech that pro business reforms is critical for the economy to take a giant leap as a liberal economy but with specific Vietnamese characteristics.