Page 3 - Global Economy

IMF, Pakistan make considerable progress on extended loan facility

The IMF has opened discussions with Pakistan on a new loan programme after Islamabad last month completed a short-term $3 bn programme

Fed remained optimistic on disinflation despite doubts, shows minutes

Officials since that meeting have tamped down expectations for imminent interest rate cuts, which investors now see beginning in September

UK inflation falls to 2.3%, lowest in 3 years but still above BoE's target

Inflation in the UK fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills, official figures showed on Wednesday. The Office for National Statistics said inflation, as measured by the consumer prices index, fell to 2.3 per cent in the year to April, down from 3.2 per cent in March. That is the lowest level since July 2021 when the global economy was still being held back by the coronavirus pandemic. The fall also takes inflation nearer to the Bank of England's target rate of 2 per cent and is likely to pile pressure on its nine-member rate-setting panel to cut interest rates from the current 16-year high of 5.25 per cent. The next rate meeting is on June 20 and many economists think the bank will cut borrowing costs. However, others think that ongoing concerns on the panel over the scale of price rises in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates a

US Fed's Waller sees some progress on inflation, says no rate hike needed

"The economy now seems to be evolving closer to what the Committee expected," Waller said, referring to the central bank's policy-setting Federal Open Market Committee

UN reports brighter global economic outlook, predicts 2.7% growth in 2024

The United Nations reported improved prospects for the world economy since its January forecast on Thursday, pointing to a better outlook in the United States and several large emerging economies including Brazil, India and Russia. According to its mid-2024 report, the world economy is now projected to grow by 2.7 per cent this year up from the 2.4 per cent forecast in its January report and by 2.8 per cent in 2025. A 2.7 per cent growth rate would equal growth in 2023, but still be lower than the 3 per cent growth rate before the COVID-19 pandemic began in 2020. "Our prognosis is one of guarded optimism, but with important caveats, Shantanu Mukherjee, director of the UN's Economic Analysis and Policy Division, told a news conference launching the report. The report pointed to interest rates that are higher for longer periods, debt repayment challenges, continuing geopolitical tensions and climate risks especially for the world's poorest countries and small island ...

US labour market rebalancing, economy slowing further in second quarter

The labor market is steadily rebalancing in the wake of 525 basis points worth of rate hikes from the U.S. central bank since March 2022 to cool demand in the overall economy

US homebuilder sentiment tumbles as high interest rates slow buyer traffic

Spot gold rose 0.4% to $2,367.29 per ounce, as of 1322 GMT. U.S. gold futures rose 0.6% to $2,372.70

ADB's Board of Governors approve $1.42 billion in 2023 allocable net income

$292.5 million to the Asian Development Fund, which provides grants to ADB's poorest and most vulnerable developing member countries

Standard Chartered Q1 2024 results: Profits rise 5.5%, beat estimates

Despite the forecast-beating quarterly profit, the bank saw its credit impairments worsen in 2024

Jerome Powell likely to keep borrowing rates higher-for-longer time

In the euro zone, data may show that the slowdown in inflation stalled in April for the first time this year

Global economy to continue solid momentum for rest of the year: Survey

A 60% majority of economists, 98 of 162, said the global economy this year was more likely to grow faster than they expected than undercut their predictions

Central banks globally struggle to keep up with US Fed's rate cut timeline

IMF officials urged Asian central banks to stick to their own knitting and avoid the temptation to lash their policy decisions too closely to anticipated moves by the Fed

Climate change to cause $38 trn yearly damage to global economy by 2049

The paper uses data from more than 1,600 regions worldwide over the past 40 years to assess future impacts of a warmer planet on economic growth

Treasury Secy Yellen says US working to mitigate risks to global economy

In remarks prepared for a news conference, Yellen said the U.S. labor market was remarkably healthy and inflation was down significantly from its peak, although there was more work to do

Global interest rates chokehold on world economy set to loosen slowly

Geopolitical tension, with conflict between Israel and Iran threatening conflagration in the Middle East, is an additional risk variable

Goldman, Morgan Stanley raise China's 2024 growth outlook as exports rise

The world's second-largest economy has struggled to regain momentum as the property sector and consumer spending remain weak

US consumer prices rise more than expected in Mar amid rises in fuel costs

The consumer price index rose 0.4% last month after advancing by the same margin in February, the Labor Department's Bureau of Labor Statistics (BLS) said on Wednesday

As India's GDP growth speeds up, can it drive the global economy?

With China's growth slowing, India could become the new engine of global economic growth, but it will take strategic investments, increased labour participation, and more to achieve its ambitions

Nonfarm payrolls in US increased by 303,000 last month, shows data

Data for February was revised slightly lower to show 270,000 jobs added instead of 275,000 as previously reported

Japan's economy recovers to full capacity, keeps rate hike prospects alive

The BOJ ended eight years of negative interest rates and other remnants of its unorthodox policy last month