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Asian Economy: Overview, Growth & Development

Asian Economy: Overview, Growth & Development
Indonesia economic growth slows in 2023

Southeast Asia’s largest economy expanded 5.05 percent, slightly above government projections but down from 5.3 percent in 2022, Statistics Indonesia said.

Fourth-quarter growth came in at 5.04 percent, marginally better than the same period in 2022.

Domestic consumption was the key driver for the economy, offsetting lagging exports, said acting Statistics Indonesia head Amalia Adininggar Widyasanti.

“The main contributor to the GDP (growth)… included household consumption, which grew 4.82 percent,” Widyasanti told reporters, adding that investment also grew.

Exports were up just 1.32 percent on-year, while imports contracted 1.65 percent, the data showed.

And economists warned of a further slowdown in growth in the coming months as Jakarta tightens monetary policy and commodity demand continues to weaken.

“Our forecast that growth in advanced economies will struggle and that commodity prices will remain subdued suggests that exports will stay weak,” said Ankita Amajuri at Capital Economics.


New productive forces reshape China’s economic landscape

State-of-the-art intelligent connected vehicles, bleeding-edge quantum computers and futuristic industrial robots — these are some examples of where China aspires to seek new sources of growth amid economic challenges.

Developing new productive forces, a recent catchphrase in China’s policy-making, is among the priorities for this year’s economic work mapped out by a tone-setting conference held last December.

By underscoring this concept, China aims to foster advanced productivity through revolutionary technology breakthroughs, innovative allocation of production factors and deepened industrial upgrading.

With the rapid development of strategic emerging industries and future industries such as new energy and quantum technology, along with traditional industries becoming smarter and more innovative, China’s economic landscape is shifting.

“China has immeasurable potential and strong competitive edges in developing new productive forces, which could become a new growth pole of the Chinese economy in the near future,” said Ming Ming, chief economist at CITIC Securities.


‘India out’ campaigns simmer in Bangladesh amid election fallout

Amid allegations of Indian interference in national elections, there’s a call to boycott Indian goods in Bangladesh.

Last week, a supplier for the Indian consumer goods giant Marico faced a chilly reception in Dhaka’s Panthapath area. Grocery shops, usually eager to stock their shelves with its hair oil, cooking oil, body lotion and other products, refused to take new deliveries.

“Sales of Parachute oil, a Marico bestseller, have plummeted to almost zero in recent weeks,” local shopkeeper Aman Ullah said. “Indian products just aren’t moving. We’re stuck with unsold stock and won’t be restocking.”

Another shop owner who requested anonymity revealed a deeper reason: “I don’t want to sell Indian products any more.” He cited YouTube videos advocating a boycott of Indian goods, which he wholeheartedly supported.

Simmering anti-India sentiment in Bangladesh has boiled over in the past decade, culminating in public displays such as celebrations in Dhaka last year after India’s loss in the Cricket World Cup final.

But after last month’s elections in Bangladesh, in which Prime Minister Sheikh Hasina secured a fourth term while the opposition boycotted the polls, a massive “India Out” campaign was launched, alleging Indian interference in Bangladesh politics.


EU and Japan sign protocol to include cross-border data flows

On behalf of the EU, the Belgian Presidency of the Council has signed the protocol to include provisions on cross-border data flows in the agreement between the EU and Japan for an Economic Partnership.

The protocol will provide greater legal certainty, ensuring that data flows between the EU and Japan will not be hampered by unjustified data localisation measures, and also ensuring the benefit from the free flow of data according to the EU and Japan’s rules on data protection and the digital economy.

This is a very important achievement as the EU and Japan are among the largest digital economies in the world. Data governance and cross-border data flows are crucial to the development of digitalisation and of the global economy and society.


The role of Singapore, Malaysia and Australia in Asean centrality

The ASEAN-Australia Special Commemorative Summit in Melbourne next month marks 50 years of dialogue relations and follows the Sydney meeting in March 2018 where leaders reaffirmed their commitment to ASEAN centrality and regional cooperation. The upcoming talks will allow Australia and ASEAN to review their achievements since 2018, including with Singapore and Malaysia, which share longstanding relations with Australia since before the birth of ASEAN in 1967 spanning security, economics and socio-cultural domains.

In security and defence, a defining pillar of relations is the multilateral Five Power Defence Arrangements (FPDA), of which Australia is a member. This began in 1971 to help defend Singapore and Malaysia from any hostile power during their formative years and support a rules-based regional order. The FPDA should remain relevant as Southeast Asia is surrounded by what Indonesia’s former foreign minister Marty Natalegawa described as an “arc of instability”.


Maldives country environmental analysis

Maldives’ natural capital is the foundation of its economy and resilience. The Maldives Country Environmental Analysis (CEA) examines the critical challenges related to natural resource and environmental management that the country currently faces. The report also provides recommendations on how Maldives can transition towards a more sustainable, resilient, and inclusive blue economy.

Over the recent decades, the Maldives has witnessed remarkable economic growth, with real income per capital having doubled within a 20-year period. Development efforts have also led to significant improvements in physical capital (infrastructure and related services) and human capital (such as health and education).

However, this development path has placed significant pressure on its natural capital, notably its ocean, coral reef and coastal ecosystems. In addition to the cost to natural capital, there has also been a deterioration in fiscal and debt stability. Environmental degradation threatens key economic sectors like tourism and fishing and undermines the countries’ resilience against sea level rise, flooding and other coastal hazards.


Economy returning to normalcy: Mahat

Minister for Finance Dr Prakash Sharan Mahat asserted that the country’s economy was returning to normalcy. At an interaction organized by Economic Media Association Nepal (EMAN) marking its first anniversary, Minister Mahat reiterated that country’s economy was moving in the positive direction.”A lot of money was spent in unproductive sector in the past. The economy was under pressure while paying the obligation of the said expenses. Now the capital expenditure will increase. Economy is gradually picking a rhythm,” the Minister assured.

Stating that the debtors obtaining loan from banks and financial institutions should pay their loan at any cost, he viewed that the private sector, media, government and civic society among others should work towards improving country’s economy.He held the opinion that the economy would pick a pace with collective efforts.”We have capital but there is problem in spending it. The expenditure will increase in coming days,” he said.Similarly, Nepal Rastra Bank’s Executive Director Guru Prasad Poudel observed that Nepal’s economy was becoming dynamic lately. He shared that the import was gradually declining and remittance inflow was increasing.


Growth and opportunity: seizing the moment in the Philippines

Emerging markets in Asia have long been a focal point for global investment and development, with their potential growth, structural reform and cultural exchange promising smoother pathways for overseas partnerships. While the largest economies in Asia dominate international news, they should not overshadow their up-and-coming ASEAN (Association of Southeast Asian Nations) peers, which are at different stages of development but possess immense potential for business and related legal services.

If ASEAN were one economy, it would be the third largest in Asia and the seventh in the world, with a combined GDP of about $2.6tr. Many of its constituent markets – including the Philippines, Vietnam, Indonesia, Malaysia, Thailand and Singapore – have continued to grow over the past five years in the face of global economic challenges, driven by robust domestic demand, government spending and the ongoing recovery of the services sector.

Nowhere is the ASEAN opportunity greater than in the Philippines. A rising star in the region, the Philippines boasts the world’s fifth-fastest-growing economy, with a GDP of $435.68bn and a population of 114 million. The country’s economic outlook is bright, with projected GDP growth of 6 percent in 2023, compared to 4.7 percent for the rest of Southeast Asia. And with extensive government investment via the ambitious Build Build Build infrastructure programme, the stage is set for the Philippines to attract higher levels of foreign direct investment and global participation in the local economy. Demand for legal services to support this activity is also surging, both for Philippine clients looking to expand internationally and those seeking to enter the market from abroad.


Sri Lanka signs free trade deal with Thailand

Thailand and Sri Lanka have signed a Free Trade Agreement (FTA), a move Sri Lanka hopes will help it emerge from its worst financial crisis in decades.

“This move aims to enhance market opportunities, with negotiations covering various aspects such as Trade in Goods, Investment, Customs Procedure, and Intellectual Property Rights,” read a statement published on Saturday by the Sri Lankan president’s media department.

The island nation has been renewing a focus on trade deals to foster economic growth and help its battered economy, which is estimated by the World Bank to have contracted 3.8 percent last year after a severe foreign exchange crunch plunged it into a wider financial crisis.

A delegation headed by Thai Prime Minister Srettha Thavisin arrived in Colombo on Saturday to sign the FTA along with other agreements. Srettha will also attend Sri Lanka’s 76th Independence Day celebrations on Sunday.

“This will provide tremendous business opportunities for both sides. We encourage our private sectors to explore the potentials of two-way trade and investment,” Srettha told a joint media briefing following the signing of the deal.

The two countries also signed a new air services agreement.

Bilateral trade between Sri Lanka and Thailand was worth about $460m in 2021, Sri Lankan central bank data showed.

Sri Lanka exports mainly tea and precious stones to Thailand and imports electronic equipment, food, rubber, plastics and pharmaceuticals.

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