China’s central bank pledges to step up policy support for slowing economy
China’s central bank said it would step up support for the slowing economy, while closely watching domestic inflation and monitoring policy adjustments by developed economies.
The People’s Bank of China (PBOC) will keep liquidity reasonably ample, prioritise stability and take steps to boost confidence, the bank said in its first-quarter monetary policy implementation report.
“Recently, the COVID-19 and the Ukraine crisis have led to increased risks and challenges, and the complexity, severity and uncertainty of China’s economic development environment have increased,” the central bank said.
But China still has favourable conditions to develop its economy over the long term thanks to its big market potentials and ample room for manoeuvre, it said.
China will keep its economic operations within reasonable ranges, the central bank said, adding it would not resort to flood-like stimulus.
The central bank will support housing demand and step up support for housing leases, it said, reiterating it would not use property as short-term stimulus for the economy.
China will keep its macro leverage ratio basically stable and also keep the yuan exchange rate essentially stable, the central bank.
The economy has taken a hit from efforts to contain the spread of record COVID-19 cases, which have led to a full or partial lockdown in dozens of Chinese cities, led by a city-wide shutdown in the economic and financial hub of Shanghai.
The PBOC cut the amount of cash that banks must hold as reserves last month and more modest easing steps are expected.
| China Economic Indicators | ||||
|---|---|---|---|---|
| Currency | 6.75 | 6.76 | May/22 | |
| Stock Market | 3036 | 3004 | points | May/22 |
| GDP Growth Rate | 1.3 | 1.5 | percent | Mar/22 |
| GDP Annual Growth Rate | 4.8 | 4 | percent | Mar/22 |
| Unemployment Rate | 5.8 | 5.5 | percent | Mar/22 |
| Inflation Rate | 1.5 | 0.9 | percent | Mar/22 |
| Inflation Rate Mom | 0 | 0.6 | percent | Mar/22 |
| Interest Rate | 3.7 | 3.7 | percent | May/22 |
| Cash Reserve Ratio | 11.25 | 11.25 | percent | May/22 |
| Balance of Trade | 51.12 | 47.38 | USD Billion | Apr/22 |
| Current Account | 895 | 1184 | USD HML | Mar/22 |
| Current Account to GDP | 1.8 | 1.9 | percent of GDP | Dec/21 |
| Government Debt to GDP | 66.8 | 57.1 | percent of GDP | Dec/20 |
Bangladesh’s GDP growth estimated at 7.25pc in fy22: BBS
Bangladesh’s economy has begun to overcome the hurdles of the COVID-19 pandemic and has, once again, reached 7 percent GDP growth.
“Real GDP growth has hit 7.25 percent in the ongoing 2021-22 fiscal year, according to a provisional estimate,” said Planning Minister MA Mannan, bdnews24.com reported on Tuesday.
“The provisional GDP rate was calculated in the nine months up to March this year,” he said.
The final growth rate for the 2020-21 fiscal year was 6.94 percent, while the rate for 2019-20 was 3.45 percent.
The figures were announced at a press conference following a meeting of the Executive Committee of the National Economic Council, or ECNEC, at Sher-e-Bangla Nagar.
The provisional estimate for per capita income in 2021-22 was $2,824, up from $2,591, the minister announced, citing a Bangladesh Bureau of Statistics report.
“In nominal terms, Bangladesh’s GDP stands at $465 billion in the ongoing fiscal year,” Mannan said.
Japan to decide Russia oil embargo timing based on economy
Japan will decide the timing and method of a Russian oil embargo while considering the possible economic effects, its industry minister said on Tuesday, after Tokyo agreed on a ban with other Group of Seven nations over Moscow’s invasion of Ukraine.
“We would like to consider a method of phasing out over time in a way that minimises adverse effects on people’s lives and business activities,” Japanese industry minister Koichi Hagiuda told a news conference.
“We will think about specific methods and timing for reducing or suspending oil imports, taking into account the actual situation,” he said.
Prime Minister Fumio Kishida said that Japan will phase out Russian oil imports.
Indonesia’s economy maintains steady growth
An historic rise in commodity prices and relaxation of Covid-19 curbs helped Indonesia’s economy grow for a fourth straight quarter between January and March, official data showed on Monday.
Southeast Asia’s largest economy grew 5.01 percent in January-March from the same period last year, compared with 5.02 percent growth in October-December. A median forecast by 19 analysts polled by Reuters had expected 5.00 percent growth in the first quarter.
Growth in the January-March period was supported by recovery in consumption, investment and exports. Surging prices of global commodities such as coal, palm oil and nickel, also contributed to record high trade surpluses for Indonesia, a major supplier of these resources.
Covid-19 restrictions imposed earlier in the year, which have now been lifted, led to a strong pick-up in Indonesia’s economic activities, Margo Yuwono, head of Indonesia’s statistics bureau, told a news conference.
“Household consumption has improved, even for tertiary spending such as travels,” he added.
But President Joko Widodo has warned of inflation risks stemming from rising global fuel and food prices and supply chain disruptions made worse by the war in Ukraine.
Analysts also cited geopolitical concerns as factors that could hamper growth.
“Several global risks that will affect the national economic recovery include geopolitical risks, China’s economic slowdown and rising global inflation that has prompted tightening of global monetary policy,” Josua Pardede, an economist at Bank Permata, said.
Indonesia’s central bank last month lowered its economic growth outlook for the year to 4.5 percent-5.3 percent, from 4.7 percent-5.5 percent previously, citing slower global growth and disruptions to trade.
Bank Indonesia (BI), which has pledged to keep interest rates at record lows until it sees signs of pressure on core inflation, intends to review its monetary policy normalization plan in May to June, and assess any risks to the inflation outlook if the government changes energy prices and subsidies.
Malaysian economy to expand 1.1pc in Q1 2022
Moody’s Analytics projected that Malaysia’s economy had grown 1.1 percent quarter-on-quarter in the first quarter of 2022 (Q1 2022), following the 6.6 percent expansion in Q4 2021.
It said the gains from a robust external position have largely extended into the opening months of 2022.
“Also, a rise in private consumption after the easing of COVID-19 restrictions and policy shift towards living with the virus is likely to have supported March-quarter growth,” it said in a statement.
Additionally, it said Bank Negara Malaysia (BNM) is expected to keep its benchmark policy rate steady at 1.75 percent during its May meeting.
As for the Asia Pacific economy, the financial services company said inflation readings for April are expected to trend higher in Asia.
India’s consumer price index (CPI) is likely to have risen to 7.3 percent year-on-year (y-o-y) last month from 7.0 percent in March, reflecting higher food prices and elevated energy costs.
Similarly, CPI in Indonesia is expected to increase to 3.0 percent y-o-y in April from 2.6 percent previously.
Brazil to donate 80,000 doses of vaccines to Maldives
The new Ambassador of Brazil to Maldives, Sergio Luiz Canaes, has stated that Brazil will be donating 80,000 doses of vaccines to the Maldives.
The new Ambassador of Brazil stated this in a meeting he had with the President of Maldives, Ibrahim Mohamed Solih on Monday.
The new Ambassador of Brazil to Maldives presented his credentials to the President in a ceremony held at the President’s Office on Monday. After which, he had a meeting with the President.
During this meeting, the ambassador informed the President that a donation of 80,000 doses of vaccines from the Ministry of Public Health under Humanitarian Cooperation of Brazil to the Maldives would be dispatched later this month.
The President and the Ambassador spoke extensively on further strengthening Maldives-Brazil relations and other mutually concerning issues. They discussed a wide range of topics, including the Covid-19 pandemic, trade, the economy and commerce, tourism, climate change and sustainable development, and other issues of global concern.
After congratulating the Ambassador on his new appointment, President Solih noted that this year marks the 34th anniversary of establishing diplomatic relations between the two countries. He stressed on the close ties between the two countries, extending his assurances of continuing to foster the relationship and cooperation.
Briefing the Ambassador on the administration’s aim of achieving more sustainable growth, President Solih stated that he wished to strengthen cooperation on boosting the Maldives’ blue economy.
Discussing the effects of climate change on livelihoods, food security, development, and existence of the Maldives and its people, President Solih stressed the need for urgent climate action. And he extended his gratitude for Brazil’s support to the Maldives during the Covid-19 pandemic.
President Solih also spoke with the Ambassador about increasing the number of tourist arrivals from Brazil.
Shanghai lockdown will not significantly affect Singapore’s supplies of food and healthcare essentials
The COVID-19 lockdown in Shanghai is not expected to significantly affect Singapore’s supplies of essential food and healthcare items, said Minister of State for Trade and Industry Low Yen Ling on Monday (May 9).
“Our reliance on China is relatively low and the cities where we import most of our food supplies are not classified as high-risk ones for now,” she said in Parliament, adding that the Government will continue to adopt “a multi-pronged approach of import diversification, local production, and stockpiling” to help minimise supply shocks.
Ms Low was responding to a parliamentary question from Member of Parliament He Ting Ru (WP-Sengkang) who asked about the impact of China’s COVID-19 lockdowns on supply chains and rising prices in Singapore.
Ms He also asked which industries or goods and services have been or are expected to be the most badly hit, and whether any further measures are being taken to alleviate the impact.
China is facing its most severe COVID-19 outbreak in two years and has responded with full or partial lockdowns in various cities as part of the country’s “zero-COVID” approach.