Home / World Economy

World Economy

Chinese vice-premier stresses financial system in real economy

The financial system needs to be more proactive in serving the real economy, supporting green and low-carbon development, and promoting high-level opening-up, Vice-Premier Liu He said Wednesday. Liu, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks in a written speech at the opening ceremony of the 2021 Annual Conference of Financial Street Forum held in Beijing. The financial system should properly handle monetary policy adjustments and redouble efforts to financially support the private sector and small and micro businesses, he ...

Read More »

UK factory orders growth falls to six-month low

British industrial orders growth slowed sharply in October to its weakest in six months, against a backdrop of sharply rising raw materials prices and widespread labour shortages, figures from the Confederation of British Industry showed on Thursday. The CBI’s monthly manufacturers’ order book balance fell to +9 in October from +22 in September, its lowest since April and well below the average forecast of +18 in a Reuters poll of economists. Quarterly CBI survey data showed domestic prices in October rose at the fastest pace since April 1980, while stocks ...

Read More »

World Bank revises up 2021 GDP forecast for Western Balkans to 5.9%

The World Bank on Thursday revised up its forecast for the economic growth of six countries of the Western Balkans to 5.9% in 2021 after a 3.1% contraction in 2020 due to the COVID-19 pandemic, but cautioned that recovery remains fragile. In its regular six-month report on the region, the lender estimated that the economies of Albania, Bosnia, Kosovo, Montenegro, North Macedonia and Serbia could grow 4.1% in 2022 and 3.8% in 2023. “A faster-than-expected recovery is really driven by two main factors: domestic re-opening triggered by various robust recovery ...

Read More »

Fed’s Quarles: taper test is met, Fed not behind curve

Federal Reserve Governor Randal Quarles on Wednesday said that while it’s time for the Fed to begin dialing down its bond-buying program, it would be “premature” to start raising interest rates in the face of high inflation that is likely to recede next year. The Fed had promised in December to keep buying $120 billion in Treasuries and mortgage-backed securities each month until the economy had made “substantial further progress” toward its goals of 2% inflation and maximum employment. Since then, the U.S. unemployment rate has dropped nearly two percentage ...

Read More »

How India can achieve high GDP growth in the medium term

There has been some good news on the economic front for India lately. In its World Economic Outlook, the International Monetary Fund stood by its real GDP growth forecast of 9.5 per cent for 2021 and 8.5 per cent for 2022. On the other hand, the IMF cut its China growth projections for 2021 and 2022 by 10 basis points each – to eight per cent and 5.6 per cent, respectively. Thus, India looks set to get the tag of the world’s fastest-growing large economy this year and retain it ...

Read More »

Gulf economies to pick up speed next year, with fall in oil prices biggest risk

Economies in the six-member Gulf Cooperation Council will grow faster next year than previously thought, according to a Reuters poll of economists who warned a decline in oil and gas prices was the biggest risk to their outlook. The oil-rich region will benefit from an increased COVID-19 vaccination rate, rising oil prices and easing of lockdown restrictions this year and next, the poll suggested. But while these may lift short-term economic prospects, they are vulnerable to the region’s high reliance on global oil demand amid an economic slowdown in China, ...

Read More »

Why common prosperity is good for China’s economy

President Xi Jinping’s introduction of the term “Common Prosperity” has led to an important discussion both inside and outside China. The aim of Common Prosperity is, of course, not at all limited to purely economic objectives. Its goals are far wider, including to ensure the rise in the living standards of the Chinese people, to increase social cohesion and political stability, and thereby to play an overall fundamental role in China’s national rejuvenation. The response within China to Common Prosperity has been a very wide welcome. But it would be ...

Read More »

China banking sector’s bad loan ratio rises as pandemic impact persists

China’s banking sector saw its bad loan ratio rise to 1.87% at end-September versus 1.86% three months earlier as the impact of the COVID-19 pandemic lingered, the sector’s regulator said on Thursday. The expiration of loan payment relief policies, put in place last year to help companies in the early days of the health crisis, also contributed to the increase. Outstanding non-performing loans in the banking sector stood at 3.6 trillion yuan ($562.63 billion), Wang Chaodi, head of the general office of the China Banking and Insurance Regulatory Commission (CBIRC), ...

Read More »

Soaring prices dampen consumer mood in India’s festival season

For Delhi resident Suman Milind, rising prices in India are casting a long shadow this year over the upcoming Diwali festival of lights. The 33-year-old homemaker is tightening her purse strings and altering her spending habits, thanks to soaring costs of fuel, transport and many manufactured items, coupled with stagnant incomes due to the pandemic. “Earlier we used to get four or five boxes of dry fruits during festivals, but now we hardly get one or two. Because of the high prices,” said Milind, adding that her family has reduced ...

Read More »

China Evergrande secures bond extension as chairman foots project bills

China Evergrande Group has secured an extension on a defaulted bond, financial provider REDD reported on Thursday, offering rare respite to the developer a day after a deal to sell a $2.6 billion stake in its property services unit failed. Evergrande has won a more than three-month extension to the maturity of a $260 million bond, issued by joint venture Jumbo Fortune Enterprises and guaranteed by Evergrande, beyond Oct. 3 after agreeing to provide extra collateral, REDD reported, citing holders of the bond. A source familiar with the matter said ...

Read More »

G20 split over coal, 1.5 degree climate limit ahead of Rome summit

The Group of 20 rich countries are divided over phasing out coal and committing to limit global warming to 1.5 degrees Celsius as they prepare for a crucial summit in Rome next week, sources familiar with the negotiations said. The need to curb emissions will be high on the agenda of the Rome G20 gathering on Oct. 30-31, seen as a key stepping stone immediately ahead of broader United Nations climate talks, called COP 26, to be held in Glasgow, Scotland. So far big polluters such as China and India ...

Read More »

China Property Stress Adds to Macro Policy Trade-Off Risks

China’s attempts to preserve strengthened risk controls over the property sector without magnifying a growth slowdown illustrate the difficult trade-offs its policymakers are facing, says Fitch Ratings. Stress could spread to other parts of the economy and the financial system if policy easing is too cautious. However, a substantial loosening of credit conditions could raise system leverage and set back efforts to control financial risks. Contagion has surfaced across parts of China’s homebuilding sector, triggered by the distress of Evergrande and aggravated by subsequent credit events involving other developers. The ...

Read More »

Labour market scarcity set to last years, says outgoing CEO of Randstad

Labour market shortages will be a major theme “for years to come”, the chief executive of global staffing group Randstad said on Thursday, as he announced he was stepping step down in March after eight years in the post. “The big theme is scarcity in the labour market,” said Jacques van den Broek, who will be replaced after two terms by Sander van ‘t Noordende, a long-time Accenture executive who joined Randstad’s supervisory board six months ago. “We do think that scarcity is going to be structural,” Van den Broek ...

Read More »

BOJ says Japan’s banking system stable, warns of risks

Japan’s banking system remains broadly stable but financial institutions could face risks including from a possible increase in credit costs caused by a delay in the economic recovery, the Bank of Japan (BOJ) said in a report on Thursday. Financial institutions also risk incurring losses on their securities investment portfolios in the event of a rapid market adjustment, the BOJ said, adding the central bank must remain vigilant. “Credit risk of overseas loans is generally contained as overseas economies recover on the whole. Nevertheless, there are signs of deterioration in ...

Read More »

Indian economy likely to grow 7.7% in Jul-Sep led by multi-speed recovery: Icra

The Indian economy is likely to have grown 7.7% in the September quarter as half of 14 high frequency indicators recovered to their pre-pandemic level during the second quarter of FY22, rating agency ICRA said on Thursday. Aditi Nayar, chief economist at Icra Ltd, said the economic recovery widened in Q2 of FY22 as the crisis wrought by the second wave of Covid-19 abated, with a larger number of sectors bettering their pre-covid performance, relative to the position in Q1 of FY22. “Nevertheless, the revival was multi-speed, with a considerable ...

Read More »

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping