One reason China is willing to engage again
Three months ago it appeared that China’s economy was on track to recover relatively quickly after being closed off to the world during the pandemic. Consumers were spending again. Exports picked up. Even China’s beleaguered housing market gave hints it was stabilizing.
That is no longer the case. Official data released Monday revealed that the annual pace of growth in China’s economy tumbled to just a little over 3 percent in the spring, well below the government’s target.
Now the faltering economy appears to have helped prompt a shift in the willingness of senior Chinese officials to engage in diplomatic talks with geopolitical rivals abroad, and to show more openness on economic policy at home.
The Change in tone is particularly visible in China’s relations with the United States. Despite several years of fraying ties and concerted efforts to become less dependent on each other, the two countries remain closely linked economically, together accounting for two-fifths of global output.
Can India’s new billion-dollar funding agency boost research?
India is planning to set up a national agency to increase research across the nation’s thousands of universities, colleges, institutes and laboratories. Legislation to establish the fund is expected to be introduced into the Indian Parliament in the next three weeks.
The National Research Foundation (NRF) will have a budget of roughly US$6 billion over five years. Some 70 percent of these funds is intended to come from investors in the private sector, and the remaining portion will be covered by the government.
The NRF’s goal is to “seed, grow and promote” research across the country’s institutions by strengthening ties between academia, industry and the government, according to a statement from the Ministry of Science and Technology. “It’s a big move,” says Namita Roy Choudhury, a chemical engineer at RMIT University in Melbourne, Australia, who collaborates with researchers at the Indian Institute of Technology Kanpur.
ADB raises growth forecast for Bangladesh’s economy to 6pc for fy23
The Asian Development Bank raised growth projection for Bangladesh’s economy to 6 percent for the Fiscal Year (FY) 2022-23, as net exports performed better than expected.
The Latest forecast by the Manila-based multilateral lender is close to the estimate by the Bangladesh Bureau of Statistics (BBS) at 6.03 percent for the FY23.
The ADB in April forecasted 5.3 percent growth for Bangladesh’s economy for the fiscal year.
For the current FY24, the ADB has kept forecast for growth of Bangladesh’s economy is unchanged at 6.5 percent.
“The Higher estimate of 6 percent for FY23 ended on June 30 reflects strong net exports as imports fell more sharply than expected and export growth slowed less than expected,” said the ADB in its Asian Development Outlook (ADO) for July 2023.
The ADB maintains its growth outlook for developing economies in Asia and the Pacific at 4.8 percent this year, as robust domestic demand continues to support the region’s recovery.
Inflation is expected to continue falling, approaching pre-pandemic levels as fuel and food prices decline, it said, forecasting inflation in developing Asia 3.6 percent this year, down from its April forecast of 4.2 percent.
Japan to establish lng reserves this year
Japan will establish a liquefied natural gas (LNG) reserve system this year to secure gas resources for “unexpected situations”, industry minister Yasutoshi Nishimura said on Tuesday.
Japan, the world’s top LNG buyer along with China, is promoting gas as a transition fuel before its economy reaches zero-neutrality in 2050. Japan also wants to be an LNG trading hub for Asia, especially for nations switching from coal to gas.
“We must accelerate energy transition and within that transition, LNG plays an extremely important role,” Nishimura told the LNG Producer-Consumer Conference in Tokyo. “We have to establish a reserve for unexpected situations.”
As Security of the LNG market – which relies on spot sales as well as mid-to-long-term contracts – requires liquidity, Japan supports the elimination of the destination clause, an obligation not to switch the final buyer, Nishimura added.
Swatch sues Malaysia over seizure of LGBTQ pride watches
Swatch has sued the Malaysian government over authorities’ seizure of watches celebrating LGBTQ pride.
In a lawsuit filed with the High Court in Kuala Lumpur, the Swiss watchmaker is seeking compensation and the return of 172 watches seized by officials over their alleged “LGBT elements”.
Swatch said in the filing that the seizure of the watches, valued at 64,795 ringgit ($14,232), had no legal basis as well as including items that had no connection to LGBTQ activism.
“Without a doubt, the seized watches did not and are not in any way capable of causing any disruption to public order or morality or any violations of the law,” Swatch said in the lawsuit, which was filed on June 24 and first reported by the Malay Mail.
Malaysia’s home affairs ministry seized the watches, some of which featured the rainbow colours associated with LGBTQ pride, during raids at a number of shopping malls across the country in May.
President for boosting trade, economic coop with Maldives
President Dr Arif Alvi has underlined the need for increasing trade and economic cooperation with Maldives for the mutual benefits of two countries.
He said that there was a great potential to expand bilateral trade and export Pakistani products to Maldives, particularly textiles, fabrics, rice, cement and pharmaceutical. He expressed these views while talking to the outgoing High Commissioner of Maldives to Pakistan, Ms Farzana Zahir, who called on him, at Aiwan-e-Sadr on Tuesday.
Talking to the outgoing High Commissioner, the President highlighted that Pakistan attached great importance to its relations with Maldives in bilateral context and within the framework of the SAARC, OIC, UN and Commonwealth. He said that both countries had commonality of views on important regional and global issues, particularly the threat posed by global warming.
EU grants 16.7 mn euros for Nepal’s agriculture, school development
The European Union has granted 12 million euros to support Nepal’s agriculture and rural development and another 4.7 million euros for school sector development, continuing its support for Nepal’s development.
The EU said that it has been supporting the agriculture sector development programme since 2019 with 36 million euro and the school sector development since 2016 with 81 million euro.
“I take this opportunity to congratulate the authorities for the results and progress achieved in the sectors since the launch of the Agriculture Development Strategy in 2015 and the School Sector Development Programme in 2016,” stated EU Ambassador Nona Deprez.
She added: “Both sectors were major drivers in overcoming the challenges posed by Covid-19, and we are happy that the EU could support them directly to Nepal’s treasury. The EU and Nepal work hand in hand to prioritise agriculture and education and we remain strong partners in this field also in the future.”
School education is the basis for future growth and prosperity. The government’s School Sector Development Programme has been successful in addressing access to education, despite the parallel challenges of adapting to the new federal system and the Covid crisis, the EU said in a statement.
Philippines’ marcos signs $9 bn wealth fund into law
Philippine President Ferdinand Marcos yesterday signed into law a bill creating a $9 billion sovereign wealth fund aimed at boosting economic growth and infrastructure spending, but critics warned it will be prone to misuse.
Marcos had pushed Congress for swift approval of the bill, which was filed by his son and cousin late last year.
During a signing ceremony at the presidential palace, Marcos said the fund would “leverage a small fraction” of the government’s money without adding to the country’s debt burden.
But a small group of protesters rallied near the palace in opposition to the law, claiming the fund was a “deception” and would put public money “in danger.”
The 500-billion-peso “Maharlika Investment Fund” will draw most of its funds from the national government, including the central bank, gaming revenue and two state-owned banks.
Private banks and companies will also be allowed to invest.
The Original proposal was for a $4.9 billion fund that would be partly bankrolled by state-run pensions for government and private-sector workers, sparking public fears that retirement savings could be put at risk.
Think of the children in Sri Lanka’s economic crisis
Sri Lanka hangs on the precipice of losing its much-lauded educational achievements after two and half years of interrupted learning from COVID-19 and now an economic collapse. Often viewed as a model of post-colonial success, with a long history of free and compulsory education and high literacy rates, Sri Lanka’s education system and children face an uncertain future.
Sri Lankan families are not only unable to afford to send their children to school, they can barely afford to feed them. How the Sri Lankan government responds and whether civil society will hold their government accountable will largely determine whether this crisis will be a catalyst for the transformation of an obsolete education system or a future in which Sri Lanka loses its educational gains and possibly its middle-income status.
COVID-19, poor economic and agricultural decisions, a corrupt government and the Ukraine war have resulted in an acute economic crisis in Sri Lanka. Over 6.2 million people, including 2.9 million children, urgently need humanitarian assistance. The education sector has been hit hard, with children facing a triple threat — learning loss, poor nutrition and challenges to well-being. School closures during COVID-19 and repeated closures in 2022 from fuel shortages due to the economic crisis have robbed a generation of children of their right to education for nearly two years.
Thailand’s economic growth forecast at 3.6pc
Delay in the formation of the new government will impact the disbursement of the 2024 national budget, especially investment in new mega projects, which may not be launched, according to Chayawadee Chai-anant, assistant governor for Corporate Relations Group of the Bank of Thailand.
She admits that the current political situation in Thailand is difficult to assess accurately, because of the high degree of uncertainty, particularly as regards the selection of the new prime minister.
She also said, though, that confidence has not been greatly affected, as she pointed out that, in the past, the Thai economy has not been seriously affected, despite episodes of political violence.
Vietnam in h1: economic report card shows mixed results
Vietnam’s economy did not start 2023 in a great place. The truth is, it was struggling broadly with lower demand in key export markets weighing on its manufacturing industry, tourist visa limitations and an ongoing closed border with China stifling the tourism industry’s recovery, and an intense desire to keep the Vietnamese dong stable coming at the cost of business borrowing. As a result, it was unclear how 2023 would unravel for Vietnam’s economy.
Overall, the first six months of the year have been a mixed bag. On one hand, GDP growth forecasts from key institutions, along with imports, exports, and FDI have slumped. On the other hand, these troubling circumstances led to an upward swing in mergers and acquisitions and attempts to stimulate the economy through a reduction in administrative costs.
Indeed, despite the current economic challenges, there is still an abundance of value to be found in the Vietnamese economy. That said, understanding these challenges and how both government and businesses are responding, is critical to maximizing a firm’s advantage.