Page 26 - Economy

Sri Lanka's economy shrinks by 11.5% in first quarter amid financial crisis

Sri Lanka's economy shrank 11.5 per cent in the first quarter of 2023 from the previous year, government data showed on Thursday, even as the cash-strapped island nation struggles to overcome the economic crisis. Sri Lanka is currently facing the worst economic crisis in the history of the island nation. The GDP for the first quarter of 2023 at the constant price has declined to Rs 3,114,187 million from Rs 3,519,400 million in the first quarter of 2022. The year-on-year GDP growth for the first quarter of the year 2023 has been reported as 11.5 per cent of negative growth rate, the statistics department said in a statement. While the agricultural sector had expanded by 0.8 per cent, the industry and service sectors had declined by 23.4 per cent and 5 per cent respectively during this quarter, it added. In 2022, the economy had contracted by over 7 per cent as the economic difficulties forced people to take to the streets with protests across the island nations that also led to the

New Zealand's economy dips into recession as higher interest rates bite

New Zealand's economy has dipped into recession as higher interest rates take their toll, new figures released Thursday show. Gross domestic product fell by 0.1 per cent in the March quarter, following a revised 0.7 per cent fall in the previous quarter, Statistics New Zealand said. That fulfils the nation's definition of a recession, which is at least two consecutive quarters of negative growth. The slowdown comes after New Zealand's central bank raised its benchmark interest rate 12 straight times to 5.5 per cent as it tries to tame inflation. The rate is at its highest level since 2008, making it more expensive for people to borrow money for homes, cars and other purchases. The Reserve Bank of New Zealand has indicated it doesn't plan to raise the rate any further for now and that its next move will be a cut. The downturn in growth was in line with economists' expectations, and the currency was little changed, with one New Zealand dollar trading at around 62 U.S. cents. Taken ov

Kerala approves 14th Five Year Plan approach document to transform economy

The Kerala government on Wednesday approved the approach document for the 14th Five Year Plan (2022-27), which, according to it, aims to transform multiple sectors of the economy and the entire state into a modern society. The document was approved by the state Cabinet, chaired virtually by Chief Minister Pinarayi Vijayan, who is currently on a tour to the US and Cuba, a statement issued by the Chief Minister's Office (CMO) said here. According to it, Kerala will continue to focus on areas including health, education, housing, social welfare, social justice, and gender justice, which together will serve as a force for accelerated growth of the productive sectors in the economy. The government said science and technology, higher skills, and skills available in the knowledge economy will be used to enhance the growth of agriculture, allied activities, modern industry, infrastructure development, and income-generating services. The economic policy will be designed to modernise and ...

Top 18 Indian states to record revenue growth of 6-8% in FY24: CRISIL

The growth will be predominantly supported by the Goods and Services Tax (GST) collections, devolutions from the Centre and taxes & duties on liquor sales

Sri Lanka can't hold election this year due to economic crisis: Cabinet

Sri Lanka is not in the position to hold a snap presidential election this year because of the ongoing economic crisis and the government's focus is on debt restructuring, Cabinet Spokesman Bandula Gunawardena said on Tuesday. No election would be possible this year as the state finances have not improved, Gunawardena said while responding to speculation that the government might opt to hold a snap presidential election. He said the government's focus, for now, is centred on successfully ending the process of debt restructuring. Former prime minister Ranil Wickremesinghe was elected as the President of Sri Lanka by the Parliament to serve the remainder of ex-president Gotabaya Rajapaksa's term, which was supposed to end in November 2024. The IMF extended a nearly USD 3 billion bailout facility to debt-ridden Sri Lanka to help stabilise the country's economy after it was jolted by a devastating economic crisis last year. Without restructuring our debt it will not be possible to obt

India providing credit line to help economy: Egyptian supply minister

The Middle East's most populous nation is racing to turn around an economy that was heavily exposed to the shock waves of Russia's invasion of Ukraine

South Indian women outnumber men in availing of loan for street vendors

According to urban affairs ministry, of the total number of beneficiaries (3.6 million) of the scheme in the country, 2.13 million are men and 1.5 million are women

All conditions met, no hurdle left in striking IMF deal: Pak PM Shehbaz

Prime Minister Shehbaz Sharif has expressed his optimism that Pakistan, which has fulfilled "all the preconditions" of the IMF, will still be able to sign a staff-level agreement with the global lender to revive the stalled bailout programme for the cash-strapped country. Sharif's remarks came as many believe that Pakistan's chances for the revival of the current USD 6.5 billion IMF programme have almost diminished before it expires on June 30. Out of the USD 6.5 billion package, the IMF has not yet disbursed $2.6 billion to Pakistan. Addressing a ceremony here on Sunday, Sharif still appeared optimistic about that deal with the global lender and while referring to the government's plan B, said, If the agreement with the IMF is (further) delayed, then I will address you. The International Monetary Fund (IMF) signed a deal in 2019 to provide USD 6 billion to Pakistan on fulfilment of certain conditions. The plan was derailed several times and the full reimbursement is still pending

Centre to come up with a master app to check EV charging stations near you

The users will be able to discover the nearest EV charging station, book a slot in advance and make payments through the app

Seeking 'accuracy': Govt to come up with fresh logistics cost estimate soon

Initial indications suggest a number lower than 14-16%, says senior official

BPCL's Bargarh bio-refinery to invigorate circular economy: Pradhan

State-owned Bharat Petroleum Corporation Ltd's (BPCL) Bargarh 2G bio-refinery which will use rice straw to produce ethanol for mixing in petrol, will invigorate a circular economy and give impetus to waste-to-wealth creation, Union Minister Dharmendra Pradhan said on Sunday. Pradhan, who is the Union Minister for HRD, visited the under-construction Bargarh 2G bio-refinery site in Odisha as part of the Vikas Teerth Yatra to mark nine years of the Modi government. "Bargarh bio-refinery is making steady progress and is expected to be commissioned soon," he tweeted. After producing ethanol from sugarcane, India is now pushing for producing low-carbon fuel from grains and agri waste. This is part of an ambitious programme to mix ethanol in petrol to cut down emissions as well as the country's dependence on imports for meeting oil needs. Presently, 10 per cent ethanol is mixed in petrol (10 per cent ethanol, 90 per cent petrol) and this volume is targeted to be doubled by 2025. The Barga

Domestic GDP growth on firm footing, growth slightly revised upwards: SBI

Country's largest commercial lender State Bank of India (SBI) said that domestic GDP growth is now on firm footing with urban demand showing good traction, while the lagging rural demand is a cause of concern. The apex bank has also revised GDP growth marginally upwards from 6.4 per cent to 6.5 per cent for the current financial year. In its 'Ecowrap' research report, SBI said that the GDP growth forecast of the apex bank RBI for the current fiscal has undergone some change since April 2023. While RBI had projected GDP growth at 6.4 per cent in April, this has been slightly revised upwards to 6.5 per cent for the current fiscal, as announced in the latest Monetary Policy Committee (MPC) meeting which concluded on June eight. Inflation for the current financial year has been pegged by 5.1 per cent by the apex bank, perceived to be above the tolerance band of RBI at four per cent. The report said that the series of rate hikes in the recent past had resulted in falling unemployment r

RBI needs monsoon to deliver before weighing rate cuts in next MPC meet

The weather announcement on Thursday provided some relief to the rate-setters and millions of farmers across India, but the concerns are not quite over

Cash-strapped Pakistan's economy shows 0.29% GDP growth, inflation over 29%

Cash-strapped Pakistan's economy showed a dismal performance during the outgoing financial year with just 0.29 per cent GDP growth and spiralling inflation at over 29 per cent, according to the economic data unveiled by Finance Minister Ishaq Dar on Thursday. Dar launched the Economic Survey 2022-23 at a crowded press conference, an annual ritual performed one day ahead of next year's budget. The survey showcases the economic achievements of the government during the year ending on June 30 amidst political turmoil and unprecedented floods. The documents showed that the GDP growth in the outgoing year remained at 0.29 per cent, missing the target of 5 per cent, including 1.55 per cent in agriculture, 2.94 in industry and 0.86 per cent in the services sectors respectively. All three sectors missed the targets, with the industrial sector contracting to 2.94 per cent from the target of 7.1 per cent growth, the data showed. The survey showed that Pakistan registered 29.2 per cent inflat

Pakistan's economy likely to grow by 2% in next fiscal year: World Bank

The World Bank has projected Pakistan's economy to grow by two per cent in the next fiscal year, much lower than the 3.5 per cent target set by the country's top economic body, saying the lasting effects of the August 2022 floods, along with policy uncertainty and limited foreign exchange resources have depressed activity in the country. The conflicting estimates by the World Bank and the National Economic Council came on Tuesday, reported the Dawn newspaper. In Pakistan, the lasting effects of the August 2022 floods, along with policy uncertainty and limited foreign exchange resources to pay for imports of food, energy, and intermediate inputs, have depressed activity, with industrial production contracting by about 25 per cent in the year to March 2023, the bank said in its latest Global Economic Prospects report. It said that the continuing effect of last year's floods in Pakistan, compounded by worsening social tensions, high inflation, and policy uncertainty, is estimated to ha

RBI expected to pause again with markets watching for shift in stance

India's latest quarterly growth figures exceeded estimates last week, bringing about an expansion of 7.2% for the last fiscal year

Pak PM calls for providing relief to poor, middle class in budget 2023-24

Cash-strapped Pakistan's Prime Minister Shehbaz Sharif has directed the authorities to take major steps in the budget for the welfare of poor and middle class, in an effort to make it people-friendly ahead of general elections which are expected in October. "Despite economic challenges, special measures should be taken for the protection of vulnerable sections of society," he said while chairing a meeting on Monday to finalise measures to provide relief to the poor and middle classes of society. Pakistan, currently in the throes of a major political as well as economic crisis, is grappling with high external debt, a weak local currency and dwindling foreign exchange reserves. The inflation level rose by a whopping 36.4 per cent in the year in April, driven mainly by food prices. This is the highest in South Asia, and up from 35.4 per cent in March, according to the country's statistics bureau. The budget 2023-24 is expected to be presented in the parliament on June 9 and the ...

5 states project their economies to grow slower than national GDP in FY'23

So far, only 15 states have revealed their projections for the gross state domestic product for 2022-23

Atomic Wallet faces security breach, loses over $35 mn in crypto

Atomic Wallet, a mobile and desktop crypto wallet allowing users to store various cryptocurrencies, has experienced a security breach and lost over $35 million in crypto assets since June 2

May services PMI at 61.2 as demand remains resilient amid rising inflation

India's headline figure has been in the expansion zone for 23 months straight since August 2021