Sri Lanka’s economy has ‘completely collapsed
Sri Lanka’s economy has “completely collapsed,” Prime Minister Ranil Wickremesinghe said Wednesday, as the crisis-hit nation faces an increasingly dire situation that has left millions struggling with fuel, electricity and food shortages. “Our economy has faced a complete collapse,” Wickremesinghe told Sri Lanka’s Parliament, adding the government was seeking help from its global partners and the International Monetary Fund (IMF) to stabilize the economy. But Wickremesinghe warned the island nation of 22 million was “facing a far more serious situation” beyond the shortages. Sri Lanka is in the midst of its worst financial crisis in seven decades, after its foreign exchange reserves plummeted to record lows, with dollars running out to pay for essential imports including food, medicine and fuel. In recent weeks, the government has taken drastic measures to cope with the crisis, including implementing a four-day work week for public sector workers to allow them time to grow their own crops. However, the measures are doing little to ease the struggles faced by many in the country. In several major cities, including the commercial capital, Colombo, hundreds continue to queue for hours to buy fuel, sometimes clashing with police and the military as they wait. Trains have reduced in frequency, forcing travelers to squeeze into compartments and even sit precariously on top of them as they commute to work.
Patients are unable to travel to hospitals due to the fuel shortage and food prices are soaring. Rice, a staple in the South Asian nation, has disappeared from shelves in many shops and supermarkets.
US, China hold rare discussion on economic challenges
Top officials from the United States and China held a “candid” video call on Tuesday to discuss global economic challenges, especially regarding supply chains. The exchange between Chinese Vice Premier Liu He and US Treasury Secretary Janet Yellen came as President Joe Biden considers lifting some tariffs on imports from China to try and ease soaring inflation. The world’s two biggest economies are also grappling with Covid-snarled supply chains and rising global energy prices. “The two sides agree that as the world economy is facing severe challenges, it is of great significance to strengthen macro-policy communication and coordination between China and the United States,” China’s official Xinhua news agency reported.
India’s economy after covid
One cost of the past two years of limited air travel is that it became too easy to lose touch with what was really happening in other countries. Having not returned in a number of years, a trip last month was a reminder that it’s always impressive to absorb, even fleetingly, how fast emerging economies such as India are changing, and notwithstanding the pandemic, largely improving. Better infrastructure, cleaner streets, more and better cars, fewer but better motorbikes, fancier shops and restaurants, way more mobile phones. The pace of change is well beyond what most people in rich countries like Australia are used to. Nowhere is India’s progress more evident than in the tech sector. In the past India’s tech story was all about its dynamic entrepreneurs and skilled IT workers. Today however, the most impressive elements are what is happening at the bottom of the pyramid, via digitally enabled inclusion. Sustained government efforts over more than a decade have delivered in spades. Most of India’s population now has access to both a unique biometric ID and a bank account. A decade ago, most lacked access to either formal identification or the banking system. A unified payments interface now allows for easy transfers and payments. And all this digitalisation is not only driving a boom in innovation and start-ups, but also enabling a promising modernisation of India’s notoriously “leaky” welfare system – using direct benefit transfers that are better targeted and reduce opportunities for corruption. Arriving just in time to make a difference during the pandemic, according to one study.
Malaysia central bank lifts key rate again
Malaysia’s central bank on Wednesday raised its benchmark interest rate for the second straight meeting, as it looked to tame rising inflation while keeping an eye on unexpectedly weak global economic growth.
Bank Negara Malaysia (BNM) lifted its overnight policy rate by 25 basis points to 2.25 percent, as expected by all 22 economists polled by Reuters. It was the first rise at a consecutive BNM meeting in more than a decade.
Widodo’s Russia-Ukraine trip divides critics in Indonesia
When Indonesian President Joko “Jokowi” Widodo announced plans to visit Russia and Ukraine last week, he raised hopes of a solution to export blockages that have sent food prices soaring globally. “War has to be stopped and global food supply chains need to be reactivated,” Widodo said last Sunday before departing for Ukraine, the first trip by a Southeast Asian leader to the region since the war erupted in February. Striking a similar note, Indonesian Foreign Minister Retno Marsudi stressed the need “to secure a grain corridor” from Ukraine, which is often described as “the bread basket of the world”, and release food and fertiliser exports from Russia. The war in Ukraine has caused serious disruptions to food production and distribution, particularly for cereals and grains, exacerbating a spike in global food prices that has been fuelled by a confluence of factors, including the COVID-19 pandemic, bad weather and poor harvests. But for some observers, the high hopes surrounding the trip failed to materialise, with unclear communication adding to a sense of confusion about what was actually achieved.
Bangladesh has become role model for developing countries
The Deputy High Commissioner of Bangladesh in Karachi Mahbubul Alam in his address under the auspices of QAHM, Institute of Nation Building, to the members of Board of Governors Karachi Council on Foreign Relations (KCFR) said that Bangladesh had become a role model for the developing countries. He said that Bangladesh’s progress had been recognized by the United Nations for development and termed as a “remarkable success story.” He added that 100 Specialized Economic Zones had been set up and achieved as Millennium Development Goals. He said that 2021 marked a very significant year for Bangladesh as they celebrated their 50th anniversary of independence. According to an IMF report, Bangladesh is one of the three countries of the world that has achieved the highest economic growth until 2021. He said from nearly no foreign reserves the country’s foreign exchange reserves today stood at US 47 billion dollars. He said Bangladesh was utilizing its manpower and became a middle-income country with a per-capita GDP of $2,554; which is growing further and fast and the life expectancy has risen to 73 years.
| GDP Of Bangladesh In Statistics | ||||
|---|---|---|---|---|
| Related | Last | Previous | Unit | Reference |
| GDP | 324.24 | 302.56 | USD Billion | Dec 2020 |
| GDP per capita | 1625.67 | 1603.95 | USD | Dec 2020 |
| GDP per capita PPP | 4818.10 | 4753.73 | USD | Dec 2020 |
| GDP From Utilities | 1761.10 | 1681.40 | BDT Million | Jun 2021 |
| GDP From Transport | 12871.80 | 12135.50 | BDT Million | Jun 2021 |
| GDP From Services | 164109.00 | 154029.00 | BDT Million | Jun 2021 |
| GDP From Public Administration | 4342.40 | 4090.60 | BDT Million | Jun 2021 |
| GDP From Mining | 1873.50 | 1868.10 | BDT Million | Jun 2021 |
| GDP From Manufacturing | 27576.40 | 26072.80 | BDT Million | Jun 2021 |
| GDP From Construction | 9582.40 | 8816.90 | BDT Million | Jun 2021 |
| GDP From Agriculture | 11540.50 | 11242.30 | BDT Million | Jun 2021 |
Australia risks recession and housing downturn
The negative impact of interest rate rises on Australian housing prices, household spending and the volume of dwelling investments may hurt consumer confidence and fuel the likelihood of a recession in Australia, analysts and economists say. The Reserve Bank of Australia raised interest rates for the third time in a row on Tuesday. Joining central banks around the world, the bank lifted the cash rate by 50 basis points to 1.35 percent after two previous rate hikes this year of 25 and 50 basis points, as the RBA tries to bring inflation under control. Anticipating a “peak to trough” fall in house prices between 15 percent and 20 percent in capital cities in 2023, AMP Australia Senior Economist Diana Mousina told CNBC’s “Street Signs” on Tuesday the size of that fall would be a “big hit” to households. “For many decades in Australia, we’ve seen some small corrections, but that [15 percent-20 percent] will be quite a decent fall,” she said. “We have obviously had a very big run-up in home prices over the past two-and-a-half years of the pandemic because we’ve had such a strong housing market, lots of demand as well for the regions in Australia.” “It will just be a bit of a hit to households … because of the wealth effect that comes through when home prices decline.”