China spending billions to get people to open their wallets?
The Chinese government has promised new child care subsidies, increased wages and better paid leave to revive a slowing economy. That is on top of a $41bn discount programme for all sorts of things, from dishwashers and home decor to electric vehicles and smartwatches.
Beijing is going on a spending spree that will encourage Chinese people to crack open their wallets.
Simply put, they are not spending enough.
Monday brought some positive news. Official data said retail sales grew 4 percent in the first two months of 2025, a positive sign for consumption data. But, with a few exceptions like Shanghai aside, new and existing home prices continued to decline compared to last year.
While the US and other major powers have struggled with post-Covid inflation, China is experiencing the opposite: deflation – when the rate of inflation falls below zero, meaning that prices decrease. In China, prices fell for 18 months in a row in the past two years.
Prices dropping might sound like good news for consumers. But a persistent decline in consumption – a measure of what households buy – signals deeper economic trouble. When people stop spending, businesses cut prices to attract buyers. The more this happens, the less money they make, hiring slows, wages stagnate and economic momentum grinds to a halt.
| Singapore | |||||
|---|---|---|---|---|---|
| Details | Last | Previous | Highest | Lowest | |
| Currency (Mar/25) | 1.33 | 1.33 | 2.31 | 1.2 | |
| Stock Market (Mar/25) | 3895 | 3859 | 3952 | 800 | points |
| GDP Growth Rate (Dec/24) | 0.5 | 3 | 9 | -11.9 | percent |
| GDP Annual Growth Rate (Dec/24) | 5 | 5.7 | 18.6 | -11.8 | percent |
| Unemployment Rate (Dec/24) | 1.9 | 1.9 | 6 | 1.4 | percent |
| Inflation Rate (Jan/25) | 1.2 | 1.5 | 34.3 | -3.1 | percent |
| Balance of Trade (Feb/25) | 6159 | 3040 | 7973 | -2000 | SGD Million |
India projects big growth in 2025
India is projected to maintain its status as the world’s fastest-growing major economy in 2025, fueled by both domestic and external factors. According to a statement from the statistics ministry, the country’s gross domestic product (GDP) grew by 6.2 percent in the three months leading up to December 2024.
While forecasts for the Indian economy indicate a growth rate of 6.5 percent in 2025, attaining the higher rates necessary to compete with China’s economy poses a considerable challenge. To realize its ambition of becoming a developed nation by 2047, India must achieve an annual growth rate of 8 percent or more. Meeting this goal will require the government to implement comprehensive economic reforms to capitalize on geopolitical convergence, an approach Indian leadership seems hesitant to adopt.
Over the past three decades, India has steadily drawn global attention with its significant economic potential. With a labor force of 600 million, a rapidly expanding middle class and a strategic geographical position, the country has become a magnet for foreign investment. In 2022, India achieved the milestone of becoming the fifth-largest economy in the world and projections indicate that it will climb to the fourth position by 2026. Furthermore, India may soon surpass China as the leading global manufacturing hub.
Yet, despite retaining its title as the world’s fastest-growing major economy, India’s expansion has slowed to its weakest pace in years – down from a decade-long average of 7 percent to just 5.4 percent annually. This is primarily due to a sluggish manufacturing sector, persistent food inflation of over 8 percent, stagnant job growth, a rising trade gap, disappointing capital flows and weak urban consumption. In fact, in February, the newly appointed governor of the central bank cut interest rates for the first time in nearly five years to boost a slowing economy.
| Philippines (Dec/24) | |||||
|---|---|---|---|---|---|
| Indicators | Last | Previous | Highest | Lowest | |
| Consumer Confidence | -11.1 | -15.6 | 13.1 | -54.5 | points |
| Consumer Spending | 4624531 | 3876628 | 4624531 | 1238391 | PHP Million |
| Consumer Credit | 935 | 845 | 935 | 76 | PHP Billion |
| Gasoline Prices (Feb/25) | 1.1 | 0.99 | 1.55 | 0.34 | USD/Liter |
Malaysia’s 1mdb scandal still casting a long shadow over its economy?
Seventy percent of the US$10 billion stolen from Malaysia in the 1MDB corruption scandal has been recovered by Malaysia, the country’s anti-corruption agency announced on Monday, following the return of US$3.2 million in assets from associates of Jho Low, the scheme’s larger-than-life alleged mastermind.
Nearly seven years after the scandal unravelled with Low’s co-conspirator and former Prime Minister Najib Razak losing in the 2018 election, Malaysia is still seeking to recover its stolen assets linked to the sovereign wealth fund.
Authorities say the nation faces formidable legal and financial hurdles as it hunts down the balance of pilfered funds to settle 1MDB-linked repayments, which the country is burdened with until 2039.
Bangladesh reaches out to U.K. for support
Bangladesh has established a road map to recover assets it says were stolen from the country — estimated at between $75 billion and $100 billion — during the government of ousted Prime Minister Sheikh Hasina, aiming to claw back at least half of the assets in 11 priority cases involving Hasina, former ministers and nine business groups by the end of this year.
Dhaka is reaching out to the U.K., hoping to persuade it to impose financial and travel sanctions on individuals who have allegedly laundered billions of dollars from Bangladesh and left them in the U.K., the U.S., Malaysia, Singapore, Hong Kong and the Cayman Islands.
According to the plan, Bangladesh Bank Gov. Ahsan H. Mansur was scheduled to meet with the All-Party Parliamentary Group (APPG) in London on Monday, seeking its support to encourage the U.K. government to take actions against 11 Bangladeshi business groups in order to quickly retrieve the allegedly siphoned money.
At the meeting at Portcullis House, Mansur told members of the U.K. Parliament that a handful of business magnates directly syphoned $20 billion to $25 billion out of Bangladesh’s banking system.
“The U.K. is the first country we would like to get help from… If something positive happens in the U.K.’s legal system, there are global ramifications,” the governor said.
He also sought the British government’s support in lobbying other countries to do the same.
During the visit, Mansur and his team also plan to meet with the U.K. Foreign Office, the National Crime Agency and the current and former justice secretaries. On Wednesday, he will hold a conference with international law firms and law enforcement agencies.
| Thailand (Feb/25) | |||||
|---|---|---|---|---|---|
| Indicators | Last | Previous | Highest | Lowest | |
| Inflation Rate | 1.08 | 1.32 | 24.56 | -4.38 | percent |
| Consumer Price Index CPI | 101 | 101 | 101 | 101 | points |
| Core Consumer Prices | 101 | 101 | 101 | 101 | points |
| Core Inflation Rate | 0.99 | 0.83 | 8.54 | -1.12 | percent |
| GDP Deflator (Mar/24) | 161 | 164 | 172 | 73.83 | points |
Indonesian stocks tumble 4 pc
Indonesia’s main stock index fell nearly 4 percent on Tuesday as concerns mounted over weakening consumer spending in south-east Asia’s largest economy and President Prabowo Subianto’s costly spending plans.
The Jakarta Composite index dropped as much as 7.1 percent to hit its lowest level since 2021, triggering a brief trading halt. The market closed down 3.8 percent after paring some losses.
The index has fallen 14.8 percent in the past year and is among the worst performers globally. The rupiah has also dropped about 2 percent against the dollar this year.
Investors have been spooked by slowing consumption in Indonesia, where purchasing power and consumer confidence have been declining in recent months.
The latest consumer price data showed year-on-year deflation in February, the first such reading in 25 years. Consumer confidence also dropped in February for a second consecutive month.
Indonesia’s middle class has been under pressure from a lack of adequate formal employment and a decline in the manufacturing sector.
In January, Bank Indonesia unexpectedly cut interest rates to boost growth despite the weakening rupiah. It also lowered its full-year economic growth forecast to a range of 4.7-5.5 percent from a previous estimate of 4.8-5.6 percent.
Don’t think that Maldives can prosper without India: former president
Former Maldives President Mohamed Nasheed on Monday emphasised the crucial role India plays in the island nation’s prosperity and security, stating that good relations with India are vital for Maldives’ safety, security, and prosperity.
Nasheed is in India to participate in the Raisina Dialogues 2025. Speaking to ANI, Nasheed said, “I don’t think Maldives can prosper without very good relations with India. Our safety, security, and prosperity rely on our good relations with India.”
Nasheed’s comments come as the Maldives faces a mounting debt crisis, exacerbated by China’s lending practices and trade policies.
“In the past, changes in governments have swung the relationship from being bad to good and bad to good. But recently, the new government has also patched up their differences with India, and that’s encouraging,” he said.
Nasheed pointed out that the new government is facing difficulties in implementing the Free Trade Agreement (FTA) with China.
“But there is still a difficulty with the new government implementing the free trade agreement with China and the impact that it will have not only on the Maldives but also what it can mean to India. I think it would be difficult for many in India to understand why the government had done that,” he added.
The China-Maldives Free Trade Agreement (FTA), implemented in January 2025, has worsened the country’s economic vulnerabilities, with Maldives exports comprising less than 3percent of bilateral trade, compared to China’s dominating 97percent import share.