Page 15 - Global Economy

Japan's economy sinks into contraction as spending, investment decline

Japan's economy slipped into a contraction in the third quarter, decreasing at an annual pace of 2.1% as consumption and investments shrank, the government reported Wednesday. Real gross domestic product, which measures the total value of a nation's products and services, fell 0.5% in the July-September period for the world's third largest economy, the Cabinet Office said. That would produce a 2.1% drop if the quarter's performance continued for a full 12 months. The downturn came after the economy grew a revised 3.7% in the first quarter and a revised 4.5% in the second quarter on an annualized basis, according to the government figures. The third quarter's performance was far worse than what had been expected, according to the financial services company ING, which had forecast an annual contraction of 0.5%. Most of the miss in the consensus forecast came from weaker-than-expected domestic demand items, such as consumer spending, business investment and inventory accumulation, Rob

China's support for certain industries poses global 'risk', says Yellen

Yellen added that she discussed China's growth slowdown with APEC, who agreed that it presented 'downside risk to the economic outlook' particularly for APEC nations with strong trade ties to Beijing

India asks Opec to ensure oil market stability for global economy's benefit

India, the world's third largest oil consumer, has asked oil producers cartel OPEC to maintain and ensure market stability for the benefit of consumres, producers and global economy. Oil Minister Hardeep Singh Puri said this at the 6th India-OPEC Energy Dialogue that took place on November 9 in Vienna, an official press statement said on Monday. The meeting was co-chaired by OPEC secretary general Haitham Al Ghais and Puri. "The open and candid discussions at the meeting focused on key issues related to oil and energy markets with a specific emphasis on ensuring availability, affordability and sustainability, which are necessary in ensuring the stability of energy markets. The two sides discussed the short, medium and long-term outlooks for the industry and recognized the important role of India in global economic growth and energy demand," the statement said. At the meeting, Puri highlighted that as the third-largest energy consumer, crude oil importer and the fourth-largest globa

Global economy at stake as US, China seek to cool tensions at APEC summit

The United States and China are the two global economic heavyweights. Combined, they produce more than 40 per cent of the world's goods and services. So when Washington and Beijing do economic battle, as they have for five years running, the rest of the world suffers, too. And when they hold a rare high-level summit, as Presidents Joe Biden and Xi Jinping will this week, it can have global consequences. The world's economy could surely benefit from a US-China detente. Since 2020, it has suffered one crisis after another the COVID-19 pandemic, soaring inflation, surging interest rates, violent conflicts in Ukraine and now Gaza. The global economy is expected to grow a lackluster 3 per cent this year and 2.9 per cent in 2024, according to the International Monetary Fund. Having the world's two largest economies at loggerheads at such a fraught moment," said Eswar Prasad, senior professor of trade policy at Cornell University, exacerbates the negative impact of various geopolitical ..

India's G20 presidency gave clear policy direction: FM Nirmala Sitharaman

The Finance Minister said that the current pace of global growth remains quite weak, well below the 3.8 per cent average in the two decades before the pandemic

Fitch upgrades India's medium-term GDP growth projection to 6.2%

The ten emerging economies include Brazil, China, India, Indonesia, Korea, Mexico, Poland, Russia, South Africa, and Turkey

Pakistan's October consumer inflation declines to 26.9%: Statistics Bureau

This brings the average inflation rate for the fiscal year (July-Oct) to 28.48%, against the target of 21% for the current fiscal year. Inflation has been in double digits since November 2021

Commodity outlook would darken if West Asia conflict escalates: World Bank

Report provides a preliminary assessment of the potential near-term implications of the conflict for commodity markets. It finds that the effects should be limited if the conflict doesn't widen

India govt bond yields edge lower as crude oil prices, US peers drop

The 10-year benchmark bond yield closed at 7.3408% after ending at 7.3769% in the previous session

Israel's central bank cuts growth estimate as war impacts economy

The monetary committee kept its benchmark at 4.75% for a third consecutive meeting on Monday, in line with the forecasts of almost all economists surveyed by Bloomberg

India's fiscal position 'solid' amid global headwinds: Finance ministry

'West Asia situation, oil prices new challenges'

Benchmark 10-year US Treasury yield hits 5%, its highest-level since 2007

The combination of those higher yields and risk of a wider conflict in the Middle East soured sentiment at the start of a week full of mega-cap earnings and key data

Poverty surges across Pakistan with food, energy prices spike: World Bank

The report indicates that poverty has risen due to declining wages, reduced job quality, and the impact of high inflation on the purchasing power of people living in poverty, according to Dawn

India's per capita FMCG consumption low compared to other economies: HUL MD

Premiumisation is bound to accelerate as Indians become more affluent and urban, says Jawa

Will use 2nd IMF tranche to settle outstanding credit: Sri Lanka minister

Sri Lanka would utilise the IMF's second tranche of the bailout deal to settle arrears owed to multilateral creditors while expediting the debt restructuring process, state minister of finance Shehan Semasinghe has said. Sri Lanka is now in a position to receive the second tranche of USD 330 million upon approval of the Staff-Level Agreement by the IMF Executive Board. The Staff-Level Agreement will enable the World Bank, Asian Development Bank, and other multilateral financial institutions to make the remaining payments, further expediting debt restructuring efforts with international partners, Semasinghe said in a statement on Friday. The IMF had, in March this year, approved a 48-month, USD 2.9 billion extended arrangement under the Extended Fund Facility (EFF) to support Sri Lanka's economic policies and reforms. It said, despite showing early signs of stabilisation, the full economic recovery was not yet assured. Sri Lanka's external position had weakened as a result of the .

US commercial property distress hits $80 bn in Q3, highest level in decade

The value of buildings in bankruptcy, repossessed by lenders or in the process of liquidation increased by a net $5.6 billion in the quarter, MSCI Real Assets reported

Inflation in UK unchanged at 6.7% in Sept, still way more than BoE's target

Inflation in the UK held steady at 6.7 per cent in September as easing food and drink price rises were offset by higher prices at the pump for motorists, official figures showed Wednesday. The flat reading reported by the Office for National Statistics was disappointing as most economists had predicted another, albeit modest, fall. It means that the UK's inflation rate remains more than three times higher than the Bank of England's target rate of 2 per cent. The bank, though, is not expected to raise interest rates at its next policy meeting in early November, opting instead to keep its main borrowing rate unchanged at the 15-year high of 5.25 per cent. Last month, the bank brought an end to nearly two years of interest rate rises as inflation fell from multi-decade highs above 11 per cent. Most economists expect a sizeable decline in inflation next month. Progress on falling inflation has stalled, for one month at least," said James Smith, research director at the Resolution ...

Pakistan: PIA cancels flights over non-payment of dues to fuel supplier

The Pakistan International Airlines cancelled 14 domestic flights while four others were delayed by several hours

US retail sales exceed forecasts, economic data defies expectation again

Sales, unadjusted for inflation, increased 0.7% after upwardly revised advances in the prior two months, according to the Commerce Department

Pakistan's annual expenditure on public servants over PKR 8 trn: Study

Despite this extensive expenditure, little is known about the overall contribution, outcomes, and impact of these public servants on taxpayers