Page 33 - Global Economy

Global economy may avoid recession as inflation risks ease - JP Morgan

The global economy could avert a recession as data points to a potential soft landing, JP Morgan analysts said, while adding that the Federal Reserve might have "over-reacted" with the 75 basis point

A soft landing is a more likely scenario for the global economy: JPMorgan

"Economic data and investor positioning are more important factors for risky asset performance than central bank rhetoric," the strategists wrote. "We maintain a pro-risk stance"

Dwindling wage growth emerging as bigger worry, says Ind-Ra report

Even as the economic recovery gains momentum, dwindling wage growth is emerging as a bigger worry as this leads to tepid demand and resultant under-utilisation of capacity, further elongating the already-large output gap, according to a report. The households, which account for 44-45 per cent of the GVA, have witnessed their nominal wage growth declining to 5.7 per cent during FY17-FY21 from a high of 8.2 per cent during FY12-16. This means wage growth in real terms is close to just about 1 per cent, India Ratings said in a note on Thursday. This is in spite of the overall economy growing at 13.5 per cent, much lower than consensus estimates, in the first quarter of the current fiscal. Even the recent trend in wage growth at the rural and urban levels alludes to an erosion of the purchasing power of households. At the nominal level, wage growth in urban and rural areas was 2.8 per cent and 5.5 per cent year-on-year, respectively, but in real terms, which means adjusted for inflation

Turbulence ahead: A slowdown in global demand is underway

Pricing risks could be next, but monetary conditions can remain tight

IMF chief says India 'a bright spot' in an uncertain global economy

Both the leaders shared concerns on key downside risks to the global economy and the cross-border effects due to the geopolitical situation and tighter financial conditions

Job creation, wealth distribution priority over inflation: FM Sitharaman

The finance minister said if India and the United States joined efforts in growing their respective economies, they might be the engines of global growth within the next two decades

Volkswagen to list Porsche in one of biggest IPOs in years: Report

The offering could value Porsche at between 60 billion euros and €85 billion, equivalent to between $59.8 and $84.6 billion, according to analyst estimates

Global economic turmoil not to impact India's recovery, says Moody's

India's economic recovery is unlikely to be derailed by rising challenges to the global economy, higher inflation and tightening financial conditions, Moody's Investors Service on Tuesday said, affirming a stable outlook for the country's rating. Moody's saw the Indian economy expanding by 7.6 per cent in the current fiscal compared to 8.7 per cent growth in the last financial year that ended on March 31. For 2023-24, it estimates a 6.3 per cent GDP growth. It rates India at Baa3, the lowest investment grade rating. In October last year, it revised upwards the rating outlook to stable from negative. "The credit profile of India reflects key strengths, including its large and diversified economy with high growth potential, a relatively strong external position, and a stable domestic financing base for government debt," Moody's said in a note. Principal credit challenges include low per capita income, high general government debt, low debt affordability and limited government ...

Recalibrating policy priorities

As the global storm rages, emerging markets will have to quickly pivot from addressing the pandemic's scars to focusing on the 'twin deficits' to preserve macroeconomic stability

India is likely to become third largest economy by 2029: SBI report

As per the SBI report, India had surpassed the UK as the fifth largest economy as early as December 2021 itself

Oil prices fall 3% on recession fears; China factory data disappoints

Brent crude futures for October, due to expire on Wednesday, were down $3.56 at $95.75 a barrel following Tuesday's $5.78 loss

Water-related disasters to cost world economy $5.6 trn by 2050: Report

This year heavy rains have triggered floods that inundated cities in China and South Korea and disrupted water and electricity supply in India, while drought has put farmers' harvests at risk

'Inflation fever' finally breaking but central banks won't stop rate hikes

As economic growth slows, prices for key raw materials - from oil to copper and wheat - have cooled in recent weeks, taking pressure off the cost of manufactured goods and food

FM Sitharaman meets US Deputy Treasury Secretary, discusses global economy

Finance Minister Nirmala Sitharaman on Friday met US Deputy Treasury Secretary Wally Adeyemo and exchanged views on global economic and financial sector issues. "FM Smt. @nsitharaman and Mr @wallyadeyemo discussed India's G20 Presidency in 2023, as well as areas of cooperation for continued and enhanced India-USA partnership," the finance ministry said in a tweet. India will hold the Presidency of the G20 from December 1 to November 30, 2023. India will host the G20 summit next year. G20 is the premier forum for international economic cooperation that plays an important role in global economic governance.

China's recovery wobbles as drought, global slowdown add to risks

China's economy continued to recover in August but warning signs are flashing across a number of fronts as drought and weaker global demand add new risks to growth prospects

Wall Street set for losses as major global economies are sputtering

Wall Street was set to open lower, with S&P 500 futures down 1% and Nasdaq futures down 1.2%

Markets can hit highs only after inflation peaks abroad: Taher Badshah

'The key risk for the market at this juncture, especially after this strong comeback, is the resurgence of the known risks of recent times, namely the rebound of inflation and geopolitical tensions'

Biggest ever fall in economic confidence: ACCA and IMA's economy survey

Weak worldwide economic growth looks likely for the rest of 2022, according to the latest edition of the Global Economic Conditions Survey (GECS) from ACCA and IMA

Macroeconomic factors unlikely to stall tech modernisation: Mindtree CEO

Macroeconomic and geopolitical developments are unlikely to turn back or stall business-critical technology modernisation, IT services firm Mindtree's CEO Debashis Chatterjee has said

Inflation, labour shortages to delay recovery in business travel spending

A recovery in global business travel spending to pre-pandemic levels is likely to be delayed by 18 months to 2026, a new industry forecast shows