South Asia remained fastest growing region globally
South Asia remained the fastest growing region in the world last year. However, growth moderated from 7.2 percent in 2017 to 6.9 percent in 2018, along with the deceleration of growth in the rest of the world. Regional growth remained driven by domestic demand – and not exports – which resulted in another year of double-digit volume growth of imports. The value of imports was further pushed up by rising oil prices. The widening current account deficits became more difficult to finance after the Federal Reserve gradually tightened monetary policy. These tensions triggered capital outflows, depreciation pressures, increases in credit default swap spreads, and falling stock prices. In some countries the strong growth of domestic demand or currency depreciation led to rising core inflation, although decelerating food prices kept overall inflation below target levels in most countries. In recent months, the data shows a more positive picture. Oil prices declined again at the end of last year. The pressure on exchange rates and reserves eased and exports rebounded. These recent high-frequency data could signal that the challenging situation has bottomed out, but the risks associated with excessive domestic demand growth remain.
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Asia’s emerging economies are winning US-China trade war
Asia’s emerging economies have been the big winners from the US-China trade war and they will gain even more if it escalates, according to the latest outlook from the Manila-based Asian Development Bank. Exports from developing Asian countries to the US rose by 10 percent over the previous year in the first half of 2019, even as exports from China fell by 12 percent. Exports from Vietnam to the US jumped by 33 percent and from Bangladesh by 13 percent. The report shows how the huge trade diversion effects caused by the US-China tariff war are creating winners and losers as they reshape global supply chains, with Bangladesh seizing market share in textiles and Vietnam in electronics.
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India faces first court challenges to e-cigarette ban
India’s ban on electronic cigarettes has been challenged in a court in the eastern city of Kolkata, marking the start of the first legal battle against the anti-vaping decision. The Indian government banned the sale, import and manufacture of e-cigarettes this month and warned of an “epidemic” among young people. The move could dash the expansion plans of companies such as Juul Labs and Philip Morris International in the country. Two separate challenges have been filed to the high court in Kolkata, by e-cigarette importer Plume Vapour and another company named Woke Vapors, according to court listing records publicly available online. A senior health ministry official in New Delhi said the government had been notified of the cases, which were heard by the court on Thursday (Sept 26) and will next be heard next Monday.
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China rejects report that Chinese hackers were suspected of airbus cyber attacks
Beijing on Friday (Sept 27) rejected an AFP report that Chinese hackers were suspected of being behind a series of cyber attacks on European aerospace giant Airbus. “In recent years, there have been many reports about cyber attacks in the media. In these reports, without any evidence, the parties concerned always pin the label of cyber attack on China and smear China,” Foreign Ministry spokesman Geng Shuang said at a regular media briefing. “This practice is neither professional nor responsible, and even has ulterior motives,” Mr Geng said, adding that China “is a firm defender of network security”.
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Japan nuclear operator admits it took $4 million in cash and gifts from local official
The president of a Japanese power firm admitted on Friday (Sept 27) that he and other executives received money and gifts that totalled 320 million yen (S$4 million) from a town hosting one of their nuclear plants. The money and gifts were given over seven years from 2011 and came from the late deputy mayor of Takahama town, where Kansai Electric (Kepco) has a nuclear plant. “I deeply apologise for causing great concern to stakeholders and the public,” Kepco president Shigeki Iwane told reporters. The admission came after investigations by tax authorities into the deputy mayor revealed the payoffs.
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Afghan transportation ministry creates new system to monitor projects
The Ministry of Transportation has created the “project management system” which will help the ministry to ensure the good quality of the road construction projects and prevent violations. Based on the new system the ministry will jointly undertake the monitoring and gradual implementation of road construction projects with the public in the future. Acting Minister of Transportation, Yama Yari, said implementation of road and railway link projects is going well but security remains to be a major hurdle in some regions. According to Sayed Shah Aqa, head of the department for development and project management system, the new system will also help ensure timely implementation of the projects.
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Nepal government launches trade information portal – NTIP
After the launch of the Visit Nepal Year 2020 website and news portal, the Nepal government has now launched the ‘Nepal Trade Portal (NTIP)’. Nepal Industry, Commerce and Supply Minister Matrika Yadav launched the portal at a program organized at the Ministry on September 19, 2019. The NTIP has started the portal with the objective to facilitate export promotion and covers all information related to Nepal exports/imports. This information will be crucial to traders looking to do business and will provide them with all the required guidance.