Page 9 - Global Economy

UN report revises India's GDP projection downward to 6.2% for 2024

Despite revising the growth estimates for 2024 downward by 0.5 percentage points, the report projects a rebound in 2025, with a GDP growth projection of 6.6 per cent

UK economy to hit 2% inflation target by spring in upgraded outlook

A 1% cut in the basic rate of income tax in April would add another £4 billion this year, and a halving of the inheritance tax rate to 20% would be worth close to £1 billion more for 2024

Weekly US jobless claims at 2-month low; labour market gradually easing

The government reported on Wednesday that job openings fell to near a three-year low in November. Labor market strength is expected to again shield the economy from recession this year

Metal prices unlikely to improve due to global macroeconomic state: ICRA

Global prices of metals, including aluminium, are unlikely to improve considerably in the near term due to uncertainties in the global macroeconomic environment, Icra said on Wednesday. Besides, energy costs are likely to increase in the second half of the current fiscal, as the domestic e-auction premia on coal is projected to be significantly higher. "International prices of three non-ferrous metals, viz., aluminium, copper and zinc, have been range-bound and fell by 2-3 per cent in the last two quarters. Such prices are unlikely to improve substantially in the near term owing to uncertainties in the global macroeconomic environment," Icra said in a statement. The increase in coal costs along with weak global sentiments impacting metal prices remain near-term concerns, Jayanta Roy, Senior Vice President and Group Head, Corporate Sector Ratings, Icra, said. With an improvement in metal supply, primarily in China, the global metal balance is likely to remain in surplus in 2024 as .

Everyone wants to do an FTA with India due to rapidly growing market: GTRI

Countries ranging from large economies like Europe, and the UK to smaller ones, including Oman and Peru, want to have a free trade agreement with India due to the country's large and rapidly growing market, a report by economic think tank GTRI said. The Global Trade Research Initiative (GTRI) said that by implementing a trade deal (FTA) with India, countries can access the Indian market with less or no import duties on substantial trade. This gives their companies an advantage over others in selling to the Indian market. Additionally, since India currently does most of its importing (over 75 per cent) from countries it does not have FTAs with, these agreements are particularly appealing as they offer a significant new market opportunity in India. "Everyone wants to do an FTA with India. Countries ranging from large economies like the US, Europe, Japan, and the UK to smaller ones like Oman, Peru, and Mauritius either already have or actively seeking an FTA with India. The main reaso

Israel delivers first interest rate cut since pandemic as war rages

The monetary committee on Monday lowered its key rate to 4.5% from 4.75%, ending a pause in place since July

World needs India to become reliable challenger to China: Anand Mahindra

The world needs India to become a reliable challenger to China's supply-chain dominance, which will provide a great opportunity in 2024 and investment will flow into the country in unprecedented volumes, according to Mahindra Group Chairman Anand Mahindra. In his New Year message, Mahindra also said all signs point to the Indian economy achieving "the mythical lift-off that we have been awaiting, for decades" and predicted that in 2024 "companies that are able to create a portfolio of desirable products both in features and price will face the happy challenge of raising their production to meet demand". Stressing that "a New Year is special because it always symbolises a new beginning", he said, "No matter how dark the year has gone by, the human spirit has an abiding capacity for hope. 2023 was a year characterised by conflict, climate change and a sluggish post-Covid recovery. The year ended with the world crying out for renewal." The first day of the new year opens a new chapter,

Lanka needs to stick to IMF programme to overcome crisis: Central bank guv

Sri Lanka's bankrupt economy has "no alternative" but to stick to the current USD 2.9 billion IMF bailout programme, central bank governor Nandalal Weerasinghem has said. The International Monetary Fund (IMF) approved the release of the second tranche worth USD 337 million to Sri Lanka earlier this month. Weerasinghe was responding to queries if the island nation was open to renegotiating the terms of the four-year programme on the back of claims by opposition parties that they would renegotiate conditions for the IMF's USD 2.9 billion bailout package. There is no alternative. The fact that we attempted alternatives was why we are here (bankruptcy) now, Weerasinghe told reporters on Friday. We have to go in the same path, say, if the period of debt restructuring allowed is 10 years if they (opposition) want to change it, the creditors can say, we don't support this anymore. If we were to leave the programme, we will have to pay USD 6 billion a year in repayments, Weerasinghe ...

Afghanistan's humanitarian crisis deepens amid economic downturn: UNICEF

The report highlights that the economic downturn has led to an increased demand for humanitarian aid in Afghanistan

Big tech firms nearly pause recruitment in India amid global slowdown

These companies have registered a 90% decline in active job postings in India in 2023 when compared to the last year, according to a report

'Discontents' notwithstanding, India has done well in last quarter century

While India should be concerned about disparities, the fact is that whereas three decades ago about half the people had incomes greater than $2.15 a day, today seven out of eight do, writes T N Ninan

China Nov industrial output rises 6.6%, retail sales below expectations

The data on output released on Friday by the National Bureau of Statistics (NBS) exceeded analysts' expectations for a 5.6% rise in a Reuters poll and made it the strongest growth since September 2022

China's central bank injects $112 bn of cash to revive economic growth

The People's Bank of China offered commercial lenders 1.45 trillion yuan ($204 billion) via its medium-term lending facility - 800 billion yuan more than the expected maturity this month

ADB raises India FY24 growth forecast to 6.7%, cites industry performance

China in 2024 is expected to slow down to 4.5%, says lender in report raising estimate for Developing Asia

Global trade to decline by about 5% in 2023 amid geopolitical tensions

The value of goods and services trade will reach $30.7 trillion compared with $32.2 trillion in 2022, according to the Geneva-based United Nations Conference on Trade and Development

Australian govt to announce its strategy for slowing immigration next week

"The new strategy we'll announce will bring immigration back to sustainable levels," he told reporters Saturday in Sydney

Big bank CEOs warn that new regulations may severely impact economy

The heads of the nation's biggest banks say there are reasons to be concerned about the health of US consumers particularly poor and low-income borrowers in their annual appearance in front of Congress on Wednesday. The CEOs of JPMorgan Chase, Bank of America, Wells Fargo and five other large firms also took the opportunity to impress upon senators that the Biden Administration's new proposed regulations for the industry may hurt the US economy going into an election year and at a time when a recession is possible. Wall Street's most powerful bankers have regularly appeared in front of Congress going back to the 2008 financial crisis. Among those testifying before the Senate Banking Committee include JPMorgan's Jamie Dimon, Bank of America's Brian Moynihan, Jane Fraser of Citigroup and Goldman Sach's David Solomon. When both houses of Congress were controlled by Democrats, the CEOs would appear in front of both the House Financial Services Committee and the Senate banking panel. N

Global regulators seek tougher scrutiny of voluntary carbon markets: Report

IOSCO last year raised the prospect of closer scrutiny of carbon markets when it said it was concerned the quality and double counting of credits left the sector open to fraud

Evergrande risking liquidation if creditors veto plan for handling debts

A Hong Kong court will convene a hearing on Monday on troubled Chinese property developer Evergrande's plans for restructuring its more than USD 300 billion in debts and staving off liquidation. The company, the world's most indebted property developer, ran into trouble when Chinese regulators cracked down on excessive borrowing in the real estate sector. Last month, the company said Chinese police were investigating Evergrande's chairman, Hui Ka Yan, for unspecified suspected crimes in the latest obstacle to the company's efforts to resolve its financial woes. The Hong Kong High Court has postponed the hearing over Evergrande's potential liquidation several times. Judge Linda Chan said in October that Monday's hearing would be the last before a decision is handed down. Evergrande could be ordered to liquidate if the plan is rejected by its creditors. In September, Evergrande abandoned its initial debt restructuring plan after authorities banned it from issuing new dollar bonds, w

S&P Global raises India's FY24 growth forecast on 'robust momentum'

A subdued global growth, unfavourable base effect and the lagged impact of rate hikes are expected to slow down the growth in the second half of FY24