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China’s economy expected to improve in H2

China’s economy is expected to gradually overcome the negative impacts of the epidemic in the second half of this year, with economic indicators showing improvement amid a raft of supportive policies, according to a report by the Bank of China. Noting that risks including rising global inflation, geopolitical tensions and volatile international financial markets might continue to weigh on the economic outlook, the report said domestic demand will play a key role in stabilizing the country’s growth during the second half of the year. It added that China’s economic fundamentals ...

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Inflation, not deflation, is now Japan’s political hot potato as election looms

The rising cost of living is turning into a thorny political issue ahead of Japan’s upper house election this weekend, as opposition parties peg blame for recent price hikes on Prime Minister Fumio Kishida’s policies. While Kishida’s ruling coalition is set to win a majority, public discontent over inflation may undermine efforts to strengthen his grip on power and phase out the legacy of his predecessors’ economic policies. Already, rising prices are taking a toll on the strong popularity Kishida had enjoyed since taking office in October, with a poll ...

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German industrial orders grow slightly in May, reversing trend

German industrial orders grew slightly in May, beating expectations and reversing a trend after three consecutive months of decline due to the war in Ukraine, data showed on Wednesday. Orders for industrial goods increased by 0.1% on the month in seasonally adjusted terms after an upwardly revised decline of 1.8% in April, figures from the Federal Statistical Office showed. A Reuters poll of analysts had pointed to a decrease of 0.6% on the month in May. Despite the stabilization, the Economy Ministry did not see cause for optimism, citing continued ...

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Arabs believe economy is weak under democracy

Nearly 23,000 people were interviewed across nine countries and the Palestinian territories for BBC News Arabic by the Arab Barometer network. Most agreed with the statement that an economy is weak under a democracy. The findings come just over a decade after the so-called Arab Spring protests called for democratic change. Less than two years after the protests, just one of those countries – Tunisia – remained a democracy, but a draft constitution published last week could push the country back towards authoritarianism, if approved. Michael Robbins, director of Arab ...

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Ukraine’s economy to shrink by at least 35% this year: PM

Ukraine’s gross domestic product (GDP) will shrink at least 35 percent this year due to the conflict with Russia, the Interfax-Ukraine news agency reported on Tuesday, citing Ukrainian Prime Minister Denys Shmyhal. While addressing the Ukraine Recovery Conference in Switzerland, Shmyhal said that the Ukrainian economy has started recovering from the “shock coma” of the first weeks of the conflict. The government carried out a “relatively successful” grain sowing campaign and resumed logistics across the western border, Shmyhal said, noting that the economy still faces many challenges. According to the ...

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New UK finance minister Zahawi says we need to grow the economy

Britain’s new finance minister Nadhim Zahawi said on Wednesday the government needed to rebuild and grow the country’s struggling economy, and he would look at all options to do that. “I will look at everything, there is nothing off the table,” he told Sky News, when asked about possible tax cuts. Britain’s economy is showing signs of a slowdown as inflation heads for double-digits and it is forecast to be weaker than other big industrialised economies next year. Zahawi also stressed the need for “fiscal discipline” and said the government ...

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BoE won’t let high inflation get embedded, Cunliffe says

Bank of England Deputy Governor Jon Cunliffe said the British central bank will ensure that the recent surge in inflation does not become embedded in the economy. “It’s our job to make sure that as this inflationary shock passes through the economy we don’t find that leaves us with inflation being the new normal, the sort of embedded psychology,” Cunliffe told BBC radio. “We will act to make sure that doesn’t happen.” Britain’s main inflation rate hit a 40-year high of 9.1% in May and the BoE has forecast it ...

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UK’s new finance minister to look at ways to remain competitive with Europe

Nadhim Zahawi, Britain’s new finance minister, said on Wednesday he would look at ways at which the country can remain “competitive and dynamic” with its European neighbours and the rest of the world. Asked about taxes, he said the Prime Minister wanted to ensure that the government had fiscal discipline, adding that he shared that focus with him. “Of course I will be looking at where else can I make sure the economy remains competitive and dynamic with our European neighbours and the rest of the world as well. Nothing ...

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Greek April retail sales rise 10%, led by apparel

Greek retail sales by volume rose 10% in April compared to the same month a year earlier after a 12.3% rise in March, statistics service ELSTAT said on Wednesday. Retail sales were led higher by apparel, footwear, furniture, home appliances, cosmetics and pharmaceuticals, the data showed. KEY FIGURES APRIL MARCH FEB JAN DEC Retail sales by volume y/y 10.0 12.3 10.8 7.6 19.6 Retail sales by revenue y/y 18.8 20.2 16.9 12.6 24.0 Source: Reuters (Reporting by Angeliki Koutantou)

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China’s BRI plays crucial role with Indonesia’s economic growth

Despite international turmoil and gloomy global business conditions, China and the Southeast Asian region appear poised to overcome the economic downturn as pragmatic cooperation will prevail for them. Many Chinese manufacturing companies have opened up new factories and warehouse in the Association of Southeast Asian Nations (ASEAN) member states, while Indonesia has emerged as a major beneficiary. Indonesia stands tall as the world’s 16th largest economy in GDP size and the biggest market in Southeast Asia. Experts are forecasting that the country could surge to become the seventh largest economy ...

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BoE’s Pill says he is open to bigger rate rise if needed

Bank of England chief economist Huw Pill said on Wednesday that he would be open to voting for a larger move in interest rates than the 0.25 percentage point steps favoured so far by the BoE, if economic circumstances warrant. Last month the BoE’s Monetary Policy Committee said it was ready to act forcefully if needed to tackle inflation that is likely to hit double digits later this year. “The statement reflects both my willingness to adopt a faster pace of tightening than implemented thus far in this tightening cycle, ...

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U.S. labor market still tight as job openings remain elevated

U.S. job openings fell less than expected in May, pointing to a still tight labor market that could keep the Federal Reserve on an aggressive monetary policy path as it battles high inflation. Though a survey from the Institute for Supply Management on Wednesday showed its measure of services sector employment contracted in June for the third time in the last five months, businesses complained they were “unable to fill positions with qualified applicants,” and that “demand for talent is higher.” The Fed is trying to cool demand for labor ...

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World hunger rising as U.N. agencies warn of “looming catastrophe”

World hunger levels rose again last year after soaring in 2020 due to the COVID-19 pandemic, with the Ukraine war and climate change threatening starvation and mass migration on an “unprecedented scale” this year, according to U.N. agencies. Up to 828 million people, or nearly 10% of the world’s population, were affected by hunger last year, 46 million more than in 2020 and 150 million more than in 2019, agencies including the Food and Agriculture Organization, World Food Programme and World Health Organisation said in the 2022 edition of the ...

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India central bank steps in with measures to enhance forex inflows

India’s central bank on Wednesday took a slew of measures to enhance foreign exchange inflows, including allowing overseas investors to buy short-term corporate debt and opening of more government securities under the fully accessible route. The measures comes at a time when the Reserve Bank of India’s (RBI) forex reserves have come down by nearly $50 billion in the last 9 months, largely due to its intervention in the currency market to cap the fall of Indian rupee. Indian rupee has lost about 6% against the dollar since the beginning ...

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U.S. service sector index at 2-year low, employment shrinks – ISM survey

The U.S. services industry slowed less than expected in June, but a measure of services employment dropped to a two-year low, suggesting that demand for labor could be ebbing as the Federal Reserve’s aggressive monetary policy stance leaves the economy staring at a recession. The Institute for Supply Management said on Wednesday its non-manufacturing activity index slipped to 55.3 last month from a reading of 55.9 in May. The third straight monthly decline pushed the index to its lowest level since May 2020, when the economy was battling the initial ...

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