Malaysia’s economy grows 16.1pc in Q2
The Malaysian economy grew 16.1 percent year on year in the second quarter of 2021, due to the low base from the significant decline in activity during the second quarter in the previous year when movement restriction was first imposed in the country, the central bank said on Friday. However, owing to the re-imposition of nationwide containment measures, the central bank has lowered Malaysia’s full-year GDP growth forecast this year to 3-4 percent, from the previous forecast of 6-7.5 percent, it said in a statement. The economic performance in the second quarter was mainly supported by the improvement in domestic demand and continued robust exports performance, said the central bank. Economic activity picked up at the start of the second quarter, but slowed down thereafter, following the re-imposition of stricter containment measures nationwide, it added.
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Japan’s consumer price falls narrow
Japan’s core consumer prices narrowed their annual pace of falls for three straight months in July, a sign global commodities inflation was offsetting some of the deflationary pressure from a pandemic-induced spending slump. But analysts expect consumer inflation to stay well below levels seen in the United States and Europe, as Japan’s decision on Tuesday to extend state of emergency curbs into mid-September is seen dealing a blow to already weak household spending. Japan’s core consumer price index (CPI), which includes oil but excludes fresh food prices, fell 0.2 percent in July from a year earlier, marking the 12th straight month of declines, government data showed on Friday.
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Unease over covid, fed tapering and China’s economy grips markets
Iron ore, luxury stocks and the dollar are all sending the same message across markets: investors are getting uneasy. That anxiety was on display on Thursday as global markets shuddered in the wake of concerns stretching from China’s economy, Covid and the tapering of Federal Reserve stimulus. While the pain was sharpest in commodities and cyclicals, even defensive tech stocks slumped. “What if the Fed can’t taper, let alone hike? This market is wedded to the narrative,” said Kit Juckes, chief foreign-exchange strategist at Societe Generale SA in London. While global equity markets are still teetering near all-time highs, there’s evidence across other markets that all is not well. The clearest alarm bell is coming from commodities most sensitive to any shifts in economic growth. Iron ore, the raw material for steel, sank to an eight-month low. Oil fell to the lowest since May and global commodity shares lost almost 2 percent.
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April-June GDP growth to be ‘deceptively high’ at 20pc: ICRA
India’s GDP is estimated to grow at the “deceptively high” level of 20 percent for the April-June quarter but would still remain far below the pre-COVID level, ratings agency ICRA said on Wednesday. ICRA said the low base of the last fiscal year, when GDP had contracted by close to 24 percent, ‘conceals’ the impact of the second wave of COVID-19 infections. Economic activity has been boosted by robust government capital expenditure, merchandise exports and demand from the farm sector, it said, estimating the GDP to grow by 20 percent and the gross value added (GVA) to register a growth of 17 percent for the June quarter. GVA is estimated to contract 15 percent compared with the preceding March quarter, showing the impact of the second wave.
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Indonesia set to keep rates low on bleak outlook
Indonesia’s central bank is expected to keep its policy rate at a record low Thursday as extended lockdown measures hamper economic recovery and unsettle the rupiah. Bank Indonesia will likely hold its seven-day reverse repurchase rate at 3.5 percent, according to all 28 economists surveyed by Bloomberg. It would be the sixth straight meeting that the central bank has stood pat as it affirms a “pro-growth” stance to keep monetary policy settings loose through next year as the economy regains steadier footing. Indonesia exited recession in the second quarter, but the return of partial lockdowns across the country have cast a pall over recovery prospects in the latter half of this year.
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Bangladesh’s economy evolves despite hard times
Businesses and economies are struggling across the globe facing the real hardships of Covid-19 pandemic. Bangladesh is not out of this brawl. It is a small and overpopulated country. However, despite the size, its economy has been growing for decades. Bangladesh’s stable political situation and economic growth over the past two decades has made it a model for economic development in comparison to the other developing nations and it keeps the pace despite the hard times. COVID-19 pandemic created an unprecedented economic and social crisis across the globe. The pandemic has imposed tremendous negative impacts on the livelihood of the marginal population all over the world. Many people have lost their jobs and incomes due to the ongoing pandemic. But with the effective measures taken by the Bangladesh government and private sector, the businesses and economies are seen recovered in a rapid manner.
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Philippines lowers 2021 economic growth target
The Philippines lowered its growth target for 2021 after the emergence of the COVID-19 Delta variant forced key cities to undergo another round of strict lockdowns. The Development Budget Coordination Committee (DBCC) on Wednesday, August 18, revised its gross domestic product (GDP) growth assumption for 2021 to 4 percent to 5 percent, from the previous 6 percent to 7 percent, “in light of the reimposition of stricter mobility restrictions in various areas of the country to effectively address the heightened risks brought about by the COVID-19 Delta variant.” This is the second downward revision by the country’s economic managers in 2021. The latest figures are now in line with previous pessimistic projections made by debt watchers and multilateral lenders. The latest downward revision also means that the government no longer sees the economy returning to pre-pandemic levels in 2021.