Singapore’s economy up 2.9 pct
The Singapore economy grew 2.9 percent year-on-year in the second quarter, following the 3.0 percent expansion in the previous quarter, according to the advance estimates released by the Ministry of Trade and Industry Friday.
The construction sector grew 4.3 percent year-on-year in the second quarter, extending the 4.1 percent growth in the preceding quarter.
The manufacturing sector grew 0.5 percent year-on-year from April to June, a reversal from the 1.7 percent contraction in the previous quarter.
Meanwhile, the growth of services industries moderated from 4.3 percent in the first quarter to 3.3 percent in the second quarter.
Asia and pacific-steady growth amid diverging prospects: present developments: resilient growth and disinflation
International researchers recorded that as in the rest of the world, growth in Asia and the Pacific has been surprisingly resilient—despite still elevated monetary policy rates, a feeble external environment, and the prospect of spillovers from China’s property sector correction. The region remained the world’s most dynamic in 2023 and contributed nearly two-thirds of global growth, with domestic consumption remaining the main driver of activity, especially in emerging Asia. At the same time, inflation has retreated, helped by timely monetary tightening in 2022 and early 2023 and by falling commodity and goods prices—although the speed of disinflation varied significantly between economies. For most countries, this conjuncture improves the prospects of a “soft landing” in 2024, by strengthening purchasing power and paving the way for possible monetary easing later in the year. This said, some economies are now at risk of undershooting their inflation targets and need to watch potential deflationary pressures. Growth in Asia and the Pacific surprised on the upside in the second half of 2023, reaching 5.0 percent for the year as whole—significantly stronger than the outcome in 2022 (3.9 percent), and 0.4 percentage point higher than projected in the October 2023 Regional Economic Outlook: Asia and Pacific. Emerging Asia accounted for the bulk of positive growth surprises, including in Malaysia, the Philippines, Vietnam, and, most notably, India. By contrast, growth outturns in advanced economies were mostly in line with October projections, except in New Zealand, which has entered into technical recession. In emerging markets, growth was supported primarily by strong private demand. In China and, especially, India, public investment made an important contribution. Countries in the region generally faced weak export demand, partly reflecting the normalization in the demand for goods relative to services after the COVID-19 pandemic. Technology products from advanced Asia were a notable exception, arguably benefiting from a surge in demand for high-end semiconductors related to artificial intelligence applications in the fourth quarter. Consistent with these trends, service sector activity was generally stronger than industrial activity in emerging markets. In advanced economies, growth in services sector activity slowed, while industrial production began to pick up in the fourth quarter. In China, the economy struggled to sustain the post-reopening momentum of early 2023, as the property sector correction deepened. Housing starts and sales continued to decline. Broader activity indicators were also lackluster, with weak manufacturing and services purchasing managers’ indexes in the second half of 2023. Outbound tourism remained significantly below prepandemic levels. Nonetheless, 2023 growth, at 5.2 percent, was 0.2 percentage point higher than forecast in the October 2023 Regional Economic Outlook: Asia and Pacific, with activity benefiting from a fiscal stimulus package announced in October that will also carry over into 2024.
Sri Lanka’s many IMF programs
Over the past two decades, Sri Lanka’s economic trajectory has been significantly shaped by assistance from the International Monetary Fund (IMF). Through a series of programs, the IMF has sought to stabilize the country’s economy, enforce fiscal discipline, and promote sustainable growth. To date, Sri Lanka has engaged in 17 IMF programs. The most recent of these initiatives is the Extended Fund Facility approved in 2023.
A critical evaluation of the policy objectives within these programs reveals recurring themes as well as unique aspects specific to each intervention.
China’s 3rd Plenum embraces a ‘new development philosophy’
The much-anticipated Third Plenum of the Chinese Communist Party (CCP) 20th Central Committee wrapped up on July 18, with a communique issued at the end of the session pledging to “further deepen reform comprehensively” while remaining “committed” to the CCP’s bedrock ideology.
The communique reiterated China’s commitment to a “new development philosophy,” one focused on “high-quality economic development” driven by “all-around innovation.” The CCP is attempting to shift away from a previous emphasis on raw growth, which was driven in the past by unsustainable infrastructure investments. Today, key technologies are expected to form the foundation for a new era of growth. The communique declared that “education, science and technology, and talent function as a basic and strategic underpinning for Chinese modernization.”
India’s economic momentum ups steam
India’s economy is expanding at the fastest rate among major emerging economies, and tax receipts are higher, factors that could prompt Finance Minister Nirmala Sitharaman to increase spending in the new 2024/25 budget that will be presented to parliament on July 23.
India’s economy is leading among major emerging markets, buoyed by robust tax receipts and accelerated growth, prompting Finance Minister Nirmala Sitharaman to consider increased spending in the upcoming 2024/25 budget.
Expected on July 23, the budget aims to boost infrastructure and welfare programmes like rural housing, bolstered by substantial central bank dividends and higher tax revenues. Despite these expansions, Sitharaman is likely to uphold interim budget fiscal deficit targets.
| Economy Of India In Statistics | ||||||
|---|---|---|---|---|---|---|
| Indicators | Last | Previous | Highest | Lowest | Value | reference |
| GDP Growth Rate | 2.1 | 1.9 | 22.6 | -22.5 | percent | Dec/23 |
| GDP Annual Growth Rate | 7.8 | 8.6 | 22.6 | -23.1 | percent | Mar/24 |
| Unemployment Rate | 9.2 | 7 | 23.5 | 6.4 | percent | Jun/24 |
| Inflation Rate | 5.08 | 4.75 | 12.17 | 1.54 | percent | Jun/24 |
| Cash Reserve Ratio | 4.5 | 4.5 | 10.5 | 3 | percent | Jun/24 |
| Balance of Trade | -21 | -23.8 | 0.71 | -31.46 | USD Billion | Jun/24 |
| Current Account | 5700 | -8700 | 19083 | -31857 | USD Million | Mar/24 |
| Current Account to GDP | -1.2 | -2 | 2.3 | -4.8 | percent of GDP | Dec/23 |
| Government Debt to GDP | 86.54 | 85.21 | 89.45 | 47.94 | percent of GDP | Dec/22 |
Who are the protesters demanding a close to job quotas in Bangladesh?
Bangladesh has been rocked by student protests for nearly three weeks.
Since July 1, university students have been protesting across the country to demand the removal of quotas in government jobs after the High Court reinstated a rule that reserves nearly one-third of posts for the descendants of those who participated in the country’s 1971 liberation movement.
Following the High Court’s ruling in June, 56 percent of government jobs are now reserved for specific groups, including children and grandchildren of freedom fighters, women, and people from “backward districts”.
Student protesters have clashed with police and members of Bangladesh Chhatra League, a student wing of Prime Minister Sheikh Hasina’s governing Awami League party.
Six people have been killed and hundreds of others injured.
How Thailand and Indonesia’s OECD entry bids could raise their economies
Thailand and Indonesia are the first countries in Southeast Asia to apply and be considered for membership in the Organisation for Economic Co-operation and Development. The countries hope it will boost economic growth in a region where it has slowed, while others say the accession process itself could lead to positive reforms.
The OECD is a group of 38 mostly higher-income European and North American member countries and is informally known as a rich countries club. Founded in 1961, it facilitates collaboration among governments on various economic, social, and environmental policy issues. Its members all have democratic systems of government and market economies, and together they comprise almost 50 percent of the world’s gross domestic product.
Japan sees record 17.78 mn visitors in first half this year
Japan welcomed a record 17.78 million foreign visitors in the first half of 2024, the country’s tourism agency has said, as the weak yen helped drive tourist numbers above pre-pandemic levels.
The January-June figure announced by the Japan National Tourism Organization on Friday is more than one million more people than the previous high of 16.63 million in 2019.
Japan is experiencing a tourism boom as a slump in the yen boosts the spending power of foreigners who receive their earnings in stronger currencies.
South Koreans were the biggest visitor group, totalling 4.4 million arrivals, followed by Chinese, Taiwanese and Americans.
The influx of visitors has delivered a much-needed boost to Japan’s economy, which has struggled with stagnant growth for decades, but also prompted grumbles from some locals.
In May, authorities in Fujikawaguchiko, Yamanashi prefecture erected a barrier to stop tourists from swarming a popular viewing spot for Mount Fuji.
Kyoto’s local council has also banned tourists from entering alleyways in the traditional district of Gion following reports of visitors harassing geishas.
Post-covid, Malaysia’s planners see Chinese investments
The 50th anniversary of Sino-Malaysian relations is being celebrated with much fanfare. Malaysian Prime Minister Anwar Ibrahim is committed to strengthening ties with China, which he considers “vital”. For 15 years, China has been Malaysia’s most important trade partner, and bilateral trade last year topped US$98 billion.
Post-Covid, Malaysia’s planners see Chinese investments as key to spurring the economy. China has committed to investing 170 billion ringgit (US$36.3 billion) in infrastructure, renewable energy, telecommunications and tourism. In the first half of 2022, Chinese investments reached US$11 billion, more than half of Malaysia’s foreign direct investment.
Nepal’s Khadga prasad oli takes oath
Nepal’s newly appointed prime minister took the oath of office Monday at a ceremony in Kathmandu.
Khadga Prasad Oli, the leader of Nepal’s largest communist party, was named prime minister on Sunday following the collapse of a previous coalition government.
Oli, 72, will be leading a coalition government made up of his Communist Party of Nepal (Unified Marxist Leninist) and the Nepali Congress party, the two largest parties in Nepal. This is his fourth time serving as prime minister of the Himalayan nation.
Two deputy prime ministers and 19 ministers appointed by him also took the oath of office. He is expected to further expand the Cabinet, including members from coalition partner parties.