Page 8 - Global Economy

Global economy, trade normalising, but still not normal: Leaders at WEF

As the World Economic Forum Annual Meeting drew to a close, global leaders on Friday said the economy and trade appeared to be moving towards normalisation but were yet expected to be far from normal. WTO Director-General Ngozi Okonjo-Iweala said the global trade was weak in 2023 before seeing an uptick in the last quarter. "We have been more optimistic about 2024, and I feel, we are moving towards normalisation, but I still don't see it returning to a normal fully," she said at a panel discussion on 'The global economic outlook' on the last day of the WEF Annual Meeting 2024 here. "There are so many uncertainties, and there also so many elections around the world, making it difficult to predict anything," she added. The WTO chief said she would still expect trade growth to be better than in 2024 unless a major war breaks out. She said there are some bright shoots on the trade front, and the trade has been the force for resilience. The WTO chief also said it is politically diffic

India takes investment spotlight while risks weigh in China: Suntory CEO

Japanese drinks maker Suntory is prioritising expansion in India while taking a cautious stance on business in China

Interest rates likely to fall but last mile very tricky: IMF Chief

IMF Chief Kristalina Georgieva on Thursday said interest rates should keep falling in 2024 but cautioned that there is no room for any policy error as the last mile is "very, very tricky". In an interview with the World Economic Forum here during its Annual Meeting 2024, she said that the central banks should not tighten prematurely because then they may lose the victory that is now in their hands. Expecting the positive trend to continue in 2024, she said, "The inflation rate is going down, on average." The International Monetary Fund's Managing Director, however, flagged the regional discrepancies still persisting around. "What we have now is a very diverse range. In some countries, the job is already done, and inflation is low enough for them to have an accommodative monetary policy. Brazil is one example. And in Asia, many countries did not have an inflation problem to start with," she said. "Central banks should not tighten prematurely because then they may lose the victory th

Indian economy has transformed in last one decade: Union ministers at WEF

Asserting that the Indian economy has undergone a significant transformation in the last one decade, three union ministers on Thursday said the country's economic growth now is not only high but also inclusive. Speaking at a session on 'Can India seize its moment' at the World Economic Forum Annual Meeting 2024, union minister Hardeep Singh Puri said India has already seized the moment. "I say so because of the GDP growth we are clocking and the expectations from all quarters for a continued growth momentum," he said. Speaking in the same session, his Cabinet colleague Ashwini Vaishnaw said the last decade has seen a significant transformation in the Indian economy. "Major investments have happened in physical and digital infrastructure. That has had a huge impact on manufacturing and overall economic activity," he said. Smriti Irani, Minister for Women and Child Development, said she agrees with minister Puri that India has already seized the moment. She said India used to have

Davos 2024: Global alliance calls for inclusive access to advanced AI tech

World Economic Forum's AI Governance Alliance on Thursday said a global effort is needed to create equitable access to advanced artificial intelligence. Artificial intelligence holds the potential to address global challenges, but it also poses risks of widening existing digital divides or creating new ones, the alliance said at the WEF Annual Meeting here. It also released a series of three new reports on advanced AI focussing on generative AI governance, unlocking its value and a framework for responsible AI development and deployment. The alliance brings together governments, businesses and experts to shape responsible AI development applications and governance, and to ensure equitable distribution and enhanced access to this path-departing technology worldwide. "The AI Governance Alliance is uniquely positioned to play a crucial role in furthering greater access to AI-related resources, thereby contributing to a more equitable and responsible AI ecosystem globally," said Cathy

US industrial production edges up to close out consistent sluggish year

The 0.1% advance in production at factories, mines and utilities followed no change a month earlier, Federal Reserve data showed Wednesday

86% Indian CEOs optimistic about country's economic growth: PwC survey

44% of global business leaders expressed a similar opinion about the economy in their countries or territories

US energy tax credit trading grows to as much as $9 bn, show study

This market has scaled faster than anyone anticipated, said Crux CEO and co-founder Alfred Johnson, a former Treasury Department staffer

Misinformation, polarisation limit our abilities: European Commission chief

European Commission President Ursula von der Leyen on Tuesday said the risks like misinformation and societal polarisation are very serious as they can limit our capabilities to deal with other challenges. In a special address at the World Economic Forum Annual Meeting 2024 here, she said this is not the time for polarisation, but for rebuilding trust. "This is not a time for conflicts, but the time to drive global collaboration and business have a crucial role to play," she added. Referring to the WEF Annual Global Risks Report that listed 'disinformation and misinformation' and societal polarisation among the biggest immediate risks before the world, she said these are indeed serious risks because they limit our capabilities in handling other risks, including conflicts, climate and technology. "This is not the time for polarisation, this is the time for trust. I believe it can be done, and I believe that Europe can lead on that front. It has never been more important for the ...

Time to rebuild trust, cooperation with each other: WEF Chair Klaus Schwab

As nearly 3,000 global leaders assembled here to discuss challenges and crises facing the world, the host World Economic Forum on Tuesday said trust and cooperation are a must in a connected yet divided world. It said the most challenging issues before the world including on security, climate and cyber fronts are not limited by borders and they travel without passports, but cooperation was still possible and was happening. WEF Founder and Executive Chairman Klaus Schwab said this occasion should be used as an opportunity to rebuild trust in each other. At the first plenary of the WEF Annual Meeting 2024, Schwab said the world today may be more connected geographically but it is also a lot more divided and fragmented. "We are also seeing unprecedented risks on technology front," he said. "Let's use this meeting to rebuild trust in each of us for the future of humanity," he said. WEF president Borge Brende said, "We have nearly 3,000 participants from more than 125 countries here at

German industry association expects economy to barely grow in 2024

Russwurm urged Germany's coalition parties to find an agreement and move forward, saying paralysis would be the worst of all scenarios

Dollar up 0.47%, hits 1-month high amid tempered expectations of rate cut

Comments from European Central Bank officials downplaying the idea of early rate cuts overshadowed the outlook for borrowing costs globally

Here's a pessimist's guide to economic risks in 2024 and what can go right

What could possibly go wrong? After years marked by war, pandemic and bank collapse, it hardly needs saying: a lot. That includes-but is not limited to-the following

German economy shrinks 0.3%, costly energy, higher interest rates to blame

Germany's economy shrank 0.3 per cent last year as Europe's former powerhouse struggled with more expensive energy, higher interest rates, lack of skilled labour and a homegrown budget crisis. Europe's largest economy has been mired in stagnation since the last months of 2022 amid those multiple challenges. The International Monetary Fund expected Germany to be the worst-performing major developed economy last year, a major turnaround from its place as a model for how to expand when other nations were struggling. German's economy likely also shrank 0.3 per cent in the fourth quarter after stagnating in the third quarter, the Federal Statistical Office said on Monday in an initial rough estimate. Official figures for the last three months of 2023 are expected to be announced January 30. Meanwhile, there's an ongoing debate about why Germany has stalled. Energy intensive industries must pay higher natural gas prices after losing Russia's cheap supply following its invasion of Ukraine,

Softer core inflation data drives India 10-year bond yield to 4-month low

U.S. yields eased last week after December producer prices data fell unexpectedly, raising bets of an early interest rate cut by the Federal Reserve

Cen banks to intervene more in bond mkt; regulation needs review: ICMA

The report is based on the biggest government bond markets in Europe

Global economy will slow for a third straight year in 2024: World Bank

Hobbled by high interest rates, persistent inflation, slumping trade and a diminished China, the global economy will slow for a third consecutive year in 2024. That is the picture sketched by the World Bank, which forecast Tuesday that the world economy will expand just 2.4 per cent this year. That would be down from 2.6 per cent growth in 2023, 3 per cent in 2022 and a galloping 6.2 per cent in 2021, which reflected the robust recovery from the pandemic recession of 2020. Heightened global tensions, arising particularly from Israel's war with Hamas and the conflict in Ukraine, pose the risk of even weaker growth. And World Bank officials express worry that deeply indebted poor countries cannot afford to make necessary investments to fight climate change and poverty. Near-term growth will remain weak, leaving many developing countries especially the poorest stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people," Indermi

Markets in India's decade

Have the markets already played out their dynamics before the economy has even properly taken off?

From domestic to global asset pricing

Global asset pricing has interesting implications for investors and firms

India's macro-economic health and prospects for 2024