World bank says Philippines economy to grow 5.6pc this year
The Philippine economy is expected to grow 5.6 percent this year and 5.8 percent next year, the World Bank said on Tuesday, as a subdued global economy, higher inflation and the lingering impact of the coronavirus pandemic weigh on its prospects.
The Projections, in the bank’s Philippines Economic Update, are below the government’s 6 percent-7 percent GDP growth target for the year, and its 6.5 percent-8 percent forecast for next year and through to 2028.
“The Philippines is subject to global economic forces. And also domestically we’ve just had the pandemic,” World Bank Senior Economist Ralph van Doorn told reporters.
Rising consumer prices and tighter monetary conditions have slowed global growth, and the COVID-19 pandemic in the Philippines have also led to learning losses, which would affect future productivity, van Doorn said.
Some reforms that ease investment inflows and the liberalisation of industries could prop up growth, he added.
China’s debt outlook downgraded as economy slows
The Risks from China’s debt pile are mounting as the country grapples with an economic slowdown and property crisis, a leading credit ratings agency has said.
Moody’s issued the warning as it cut its outlook on the government’s debt to negative, from stable.
The Firm is the latest to raise concern about problems facing the world’s second-largest economy.
China said it was disappointed by the move, calling the economy resilient.
The Country has signalled plans to ramp up stimulus spending, as it battles soaring youth unemployment, weaker global demand hitting its manufacturing industry and deepening woes in the property sector.
Some of the country’s largest construction companies are facing insolvency and have stopped building, leaving customers stranded.
Local governments, which have borrowed billions to build infrastructure and relied on land sales to bring in revenue, are also under strain.
India on track to become world’s 3rd-largest economy
India is poised to become the world’s third-largest economy by 2030, with a forecast of 7 percent GDP growth in the fiscal year 2026-27, said S&P Global Ratings on Tuesday. It added that the country is also set to become the fastest-growing major economy in the next three years.
The Global Credit Outlook 2024 report by S&P anticipates a 6.4 percent GDP growth in the fiscal year ending March 2024, compared to 7.2 percent in the previous financial year.
The Growth trajectory is expected to continue with a 6.4 percentg growth rate in the next fiscal year (2024-25), followed by an increase to 6.9 percent and finally reaching 7 percent in the fiscal year 2026-27. “”We see India reaching 7 percent in 2026-27 fiscal,” said S&P.
Driving Malaysia’s digital opportunities forward
Emerging from the highly successful six-week-long tech extravaganza, the Malaysia Digital Expo 2023 (MDX2023), Malaysia’s reputation as a thriving investment destination and a digital hub linking the rest of Southeast Asia has soared to greater heights. With the theme “Let’s do Business. Get Invested in Malaysia,” MDX2023 served as a platform for Malaysia to showcase its digital capabilities and encourage collaborations.
During the Grand Finale opening ceremony at MDX2023, Malaysia’s Prime Minister Anwar Ibrahim said, “Malaysia is resolute in establishing a growth economy that is not only sustainable but also inclusive, and MDX2023 is a testament to Malaysia’s unwavering commitment to realizing our digital economy ambitions.
Our digital economy stands as one of Malaysia’s key economic pillars, contributing a substantial 23.2 percent to our nation’s GDP. The challenge is to ensure that we emerge as a successful nation through digital transformation.”
Malaysia Digital (MD) and its predecessor, MSC Malaysia, have seen positive growth over almost three decades of existence. In total, 2,708 active companies have collectively invested more than RM430 billion (US$91.8 billion), generating over RM500 billion (US$106.7 billion) in revenue and RM220 billion (US$49.9 billion) in exports, as well as creating close to 200,000 jobs.
PM Modi, President Muizzu agree to set up core group
India and the Maldives on Friday agreed to set up a core group to further deepen their partnership, as Prime Minister Narendra Modi held a “productive” meeting with newly-elected Maldivian President Mohamed Muizzu on the sidelines of the UN’s COP 28 climate summit.
“President @MMuizzu and I had a productive meeting pressently. We discussed ways to enhance the India-Maldives friendship across diverse sectors. We look forward to working together to deepen cooperation for the benefit of our people,” the PM tweeted after the meeting, his first with Mr. Muizzu.
According to the Prime Minister’s Office, the two leaders discussed ways to further bolster India-Maldives relations in sectors pertaining to economic relations, development cooperation, and people-to-people ties.
Canada-Mongolia new comprehensive partnership means business
November 30 marked the 50th anniversary of Mongolia and Canada establishing diplomatic relations. In recognition of this milestone, Ottawa and Ulaanbaatar upgraded their bilateral ties to a comprehensive partnership during Mongolian Foreign Minister Battsetseg Batmunkh’s official visit to Ottawa. The upgrade, in essence, aims to reinvigorate economic activities between government services and private sectors.
Battsetseg’s visit to Canada from November 20 to 22 was the first by a Mongolian foreign minister in 25 years. She used the visit not only to underscore the need to improve the Canada-Mongolia economic partnerships, but also to shed light on the success stories of Canadian businesses in Mongolia and vice versa.
In a joint statement, the two governments agreed to further explore regional and multilateral engagements as well as expanding commercial relationships.
Mongolia and Canada established official diplomatic relations in 1973. However, the Canadian government recognized Mongolia and supported the country’s independent foreign policy well before that. Canada supported Mongolia’s membership to the United Nations back in 1961 – over a decade before the two established an official diplomatic relationship.
Govt committed to improving country’s economy
Acting Prime Minister and Defence Minister Purna Bahadur Khadka stated that the government is serious about attempts by certain interest groups to exploit the economic crisis for political advantages. At a program organized on the 27th anniversary of the Society of Economic Journalists Nepal (SEJON), the acting PM urged the general public not to follow unruly crowds and to trust the government.”There is no alternative to the federal, democratic, and republic system achieved through the sacrifice of thousands of people and a long political struggle. It is the need of the hour to strengthen and make this system more responsive to the people,” he mentioned.
Stating that the government is actively committed to resolving the problems in the country’s economy, the Defence Minister expressed belief that the economy would soon head in the right direction. He further said the government is ready to move forward through constructive dialogue and collaboration with all-private sector and stakeholders-for the reform of the economy.The world’s economy has been affected by the corona pandemic, the Russia-Ukraine war, and the Israel-Palestine conflict, and Nepal has not remained untouched by this, he observed, pointing out, “We should focus our efforts on increasing income and employment by improving the investment environment.”Sharing that the government is serious about resolving all problems seen in the economy, the acting PM mentioned that the government has been making possible efforts to improve it, and signs of gradual improvement have started to be seen in this sector. There are some positive signs in the economy, he said. “There are not only problems in the economy.
Thailand’s economic quagmire: lagging growth and political turbulence
On November 20, Thailand’s Prime Minister Srettha Thavisin expressed concern over the significantly slower-than-anticipated growth in the third quarter. The economy grew by just 1.5 percent for the July-September quarter, the National Economic and Social Development Council (NESDC) reported last week, compared to the 2.4 percent predicted by economists, the second consecutive quarter of easing growth.
The NESDC cited contractions in government expenditure, exports, and imports in both the agricultural and non-agricultural sectors. Particularly noteworthy was the 2.8 percent decline in the industrial sector over two consecutive quarters. While private consumption expanded by 8.1 percent in Q3, a 3.1 percent fall in exports contributed to the economic challenges. The services sector, fueled by increased foreign tourist activity, showed significant growth of 23.1 percent.
NESDC’s downward revision of the growth forecast for 2023 to 2.5 percent, at the lower end of the initial range, raises concerns about the nation’s economic trajectory and suggests a potentially slower-than-expected recovery from the recession of the COVID-19 pandemic. It also casts into doubt Prime Minister Srettha Thavisin’s ambitious goal of achieving 5 percent growth over its four-year term. Srettha, who assumed office in late August, faces challenges in realizing this vision, particularly due to his flagship digital wallet policy, which aims to infuse 500 billion baht into the economy via 10,000-baht ($285) handouts to nearly every Thai citizen.
Vietnam to investigate its central bank’s handling of credit growth
Vietnam’s government will investigate the central bank’s handling of credit growth, the Ministry of Industry and Trade said on Saturday, after the government complained that credit was growing too slowly.
Deputy Prime Minster Le Minh Khai has asked the Government Inspectorate to conduct the investigation, the ministry said in a news release.
The State Bank of Vietnam (SBV) did not immediately respond to a request for comment.
Vietnam’s economic growth largely relies on credit growth managed by the central bank, which sets annual targets for banks, with the aim of controlling lending and managing growth.
The SBV, which targeted 14 percent credit growth for the banking system this year, said on Thursday lending was up only 8.21 percent as of Nov. 22 from the end of last year and credit growth was uneven among banks.
Khai told the SBV in a meeting this week that credit growth had been too low, instructing the central bank to review the lending activities of each commercial bank, another government statement said.
The SBV said credit growth was low because “the economy was still facing difficulties with a slow economic recovery and therefore the demand for loans was weak,” according to the statement.
An SBV official has also been embroiled in a financial scandal that police said entailed fraud of more than $12 billion, or 3.2 percent of the economy.
Truong My Lan, chairwoman of real estate developer Van Thinh Phat Holdings Group, and her accomplices embezzled 304 trillion dong ($12.5 billion) from Saigon Joint Stock Commercial Bank, according to the investigation, which found that a senior SBV official took a multi-million dollar bribe from Lan to ignore its wrongdoings.