China outlines plan to stabilize economy
Plowing past global anxieties over the war engulfing Ukraine, China set its economy on a course of steady expansion for 2022, prioritizing growth, job creation and increased social welfare in a year when the national leader, Xi Jinping, is poised to claim a new term in power. The annual government work report delivered to China’s National People’s Congress by Premier Li Keqiang on Saturday did not even mention Russia’s invasion of Ukraine, and it took an implacably steady-as-it-goes tone on China’s economic outlook. The implicit message appeared to be that China could weather the turbulence in Europe, and would focus on trying to keep the Chinese population at home contented and employed before an all-important Communist Party meeting in the fall, when Mr. Xi is increasingly certain to extend his time in power.
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Russia-Ukraine war impacts on Indonesia’s economy
The world economy had just recovered strongly in 2021 from the COVID-19 pandemic when Russia invaded Ukraine on Feb 24. But now after the Western allies have imposed sanctions against Russia, it has to face soaring oil and other commodity prices, and other economic disruption across the globe. Higher energy prices will reduce discretionary spending by consumers leading to lower consumption. At the same time heightened geopolitical risks will intensify market volatility disrupting investment flows. The weakened growth will reverberate across the globe. The sanctions by the Western alliance on Russia will hit Russia’s financial and energy sector hard. The removal of Russia’s major banks from the Brussels-based Society for Worldwide Interbank Financial Telecommunication (SWIFT), a secure messaging system that facilitates rapid cross-border payments, making international trade flow smoothly, will deal a big blow to Russian trade and make it harder for Russian companies to do business.
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Indian economy is picking up momentum after covid-19
Prime Minister Narendra Modi declared that the Indian economy was once again gaining momentum after Covid-19 and emphasised the need to consider ways to reduce dependence on other countries by exploring different models of financing developmental projects.
”The Indian economy is once again picking up after the once-in-a-century pandemic and this is a reflection of our economic decisions and strong foundations of the economy,” he said, addressing a post-Budget webinar on ‘Financing for Growth & Aspirational Economy. This is the 10th such post-Budget webinar addressed by the PM.
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Bangladesh focuses on ASEAN
Bangladesh is lagging far behind her rivals like Vietnam when it comes to Foreign Direct Investment (FDI), an essential source of investment for any developing economy. Meanwhile, we are also trying to sign fair trade agreements (FTA) in preparation for the benefits we will lose when we get official developing country status. The Business Standard spoke with Former Chairperson of Business Initiative Leading Development (BUILD) and Managing Director of AK Khan Telecom Ltd, Abul Kasem Khan, to find out how we navigate a promising yet uncertain future. Bangladesh is in talks with Eurasian Economic Union (EAEU), Canada and Mercosur, as well as other countries, about signing Free Trade Agreements (FTA). How important are such agreements for us?
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Japan economy grows 4.6pc
Japan is unlikely to slide into stagflation– a condition where rising inflation and shrinking economic growth co-exist, a senior central bank official said on Wednesday as data showed the economy grew at a smaller rate than expected in the fourth quarter. With the Ukraine crisis triggering sharp rises in energy and commodity prices, consumer inflation will “clearly accelerate” as firms pass on the costs to households, Seiichi Shimizu, head of the Bank of Japan‘s monetary affairs department, said. “But we don’t expect Japan to face a stagflation-like situation, defined as a combination of rising inflation and a contraction in economic growth,” he told parliament. “We expect Japan’s economy to recover as the hit to service consumption from the coronavirus pandemic eases,” adding to support from solid external demand, he said.
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Malaysia to re-open for tourists after 2-year
Malaysia will re-open to all vaccinated tourists from April 1, authorities said Tuesday, joining a growing number of countries removing restrictions in an attempt to live with Covid. The tourism-reliant Southeast Asian country, known for its white-sand beaches and lush rainforests, shut its borders in March 2020 but will now require only a negative Covid test to enter. “The government has decided to open its borders on April 1, 2022,” Prime Minister Ismail Sabri said in media briefing. “We believe this decision will boost our economy and help revive our ailing tourism sector.” The re-opening comes despite Malaysia reporting more than 25,000 infections a day in recent weeks, though most cases have been mild. Its decision mirrors those of neighbouring nations including Singapore, Thailand and the Philippines that are progressively easing entry rules to lure back tourists. Malaysia’s economy contracted 5.6 percent in 2020 as Covid hit but rebounded slightly to grow 3.1 percent last year.