Page 3 - Economic Crisis

The Ukraine war's shockwaves are hurting Bangladesh's apparel industry

Clothing and textile production is by far the biggest industry in Bangladesh

UK donates $28 mn in emergency funds to Afghanistan amid fragile economy

Economists believe that humanitarian aid is useful for the country's citizens in the short term, but it has not decreased poverty in the country, according to Tolo News.

The declining middle class leaves politics unruffled

The Congress and the united Opposition need to show economic leadership. They have described the symptoms of the economic crisis but failed to create a narrative that goes beyond it

Pakistan needs $16 bn to rebuild as losses from flash floods cross $30 bn

Losses due to devastating floods in Pakistan have surpassed $30 bn as the monsoon rains have washed away roads, crops, infrastructure

US economy likely returned to growth, after shrinking in 2 quarters

The problems have hardly gone away. Inflation, still near a 40-year high, is punishing households. Rising interest rates have derailed the housing market and threaten to inflict broader damage. And the outlook for the world economy grows bleaker the longer that Russia's war against Ukraine drags on. But for now anyway, the USD economy has likely returned to growth after having shrunk in each of the first two quarters of 2022. At least that's what economists expect to see on Thursday when the Commerce Department issues its first of three estimates of gross domestic product the broadest measure of economic output for the July-September period. Economists surveyed by the data firm FactSet have predicted, on average, that GDP grew at a 2 per cent annual rate in the third quarter. That would reverse annual declines of 1.6 per cent from January through March and 0.6 per cent from April through June. Consecutive quarters of declining economic output are one informal definition of a ..

UK PM Sunak warns of 'very difficult decisions' to tackle economic crisis

Britain's newly-appointed Prime Minister Rishi Sunak on Wednesday warned that his government will have to take some "very difficult decisions" but assured the people that he would also act with compassion while tackling the country's "profound economic crisis." Sunak, Britain's first Indian-origin Prime Minister, took office on Tuesday with a pledge to fix the "mistakes" his predecessor Liz Truss made which left a blackhole in government finances and the markets in turmoil. Sunak, the third prime minister in seven weeks, opened the Cabinet meeting by saying that "economic stability and fiscal sustainability would be at the heart" of his government's mission, according to a read-out from his first cabinet meeting. "This morning I set out to Cabinet the enormous task we face, and why I am confident that this government can rise to the challenge and deliver for the whole United Kingdom," Sunak tweeted. "Now is the time to get to work and earn the trust of the British people," he wrote

Syria facing 'acute violence', worst economic crisis since war: UN

Syria is facing acute violence, the worst economic crisis since the war began in 2011, and a rapidly spreading cholera outbreak with more than 24,000 suspected cases reported throughout the country and at least 80 deaths, U.N. officials have said. U.N. special envoy Geir Pedersen told the U.N. Security Council on Tuesday that the conflict remains very active across the country despite the strategic stalemate that has blocked efforts to launch a political process between the government and opposition. He pointed to infighting between armed opposition groups in Afrin in northern Aleppo province in recent weeks, pro-government airstrikes in the northwest, violence in the northeast, security incidents in the southwest, airstrikes attributed to Israel on airports in Damascus and Aleppo, and discovery in the northeast of one of the largest Islamic State arms caches since its so-called caliphate fell in 2017. In recent weeks, Pedersen said, the Syrian currency, the pound, lost a tremendous

Sri Lanka's consumer inflation hits record 73.7% in September

Annual food price inflation picked up to 85.8 per cent from 84.6 per cent in August, while prices of non-food items rose 62.8 per cent.

Act now to bring down inflation, safeguard financial stability: IMF Chief

The International Monetary Fund on Thursday urged policy makers across the world to act now to bring down inflation, put in place responsible fiscal policy, safeguard financial stability and carry reforms to address climate change, make digitalisation work for people and address inequality. Speaking to reporters at a press conference here, IMF Managing Director Kristalina Georgieva said, "The IMF is working with our 190 members on these issues. Our economic analysis is front and centre to help countries navigate this complex environment and avoid policy mistakes. Describing it as a difficult global environment, Georgieva said the world economy has been hit by one shock after another the coronavirus pandemic, Russia's invasion of Ukraine and climate disasters on every continent. They continue to harm people's lives and they have caused a cost-of-living crisis, she noted. The immediate toll is clear. On Tuesday, we cut our global growth forecast to 2.7 per cent in 2023. Across many .

Sri Lanka's inflation zooms to 69.8% in Sept amid worst economic crisis

Sri Lanka's inflation has set a new record of 69.8 per cent in September, up from 64.3 per cent a month earlier, data from the state statistics office said on Friday, highlighting the challenge for the central bank as the island reels under its worst economic crisis in seven decades. The Colombo Consumer Price Index (CCPI), a leading indicator that gauges inflation in Sri Lanka's biggest city, rose 69.8 per cent from a year ago, from 64.3 per cent in August. The contribution from the food sector was 30.82 per cent in September, the statistics department said. Based on the CCPI, the moving average inflation in September was 33.4 per cent over 28 per cent recorded in August. Most basic food items other than rice and eggs had seen increases. The government recently hiked utility services rates of water and electricity alongside the high cost of food. Import restrictions imposed in the ongoing economic crisis have caused scarcities. The worsening foreign exchange crisis in April cau

Austria govt unveils aid package for companies amid energy crisis

The Austrian government has unveiled a new aid package worth 1.3 billion euros for companies struggling with the worsening energy crisis

US Treasury Secretary warns inaction on climate could cause economic crisis

Treasury Secretary Janet Yellen warned Tuesday of economic calamity if climate change is not addressed with immediate government intervention. Joined by local business owners and prominent Democrats in North Carolina, Yellen said the increasing frequency and severity of natural disasters could create devastating short-term supply reductions of everyday goods that could cause prices to skyrocket. Supply chain disruptions like those experienced on a global scale during the COVID-19 pandemic could soon become commonplace, she said during a visit to Cypress Creek Renewables' solar farm in Chapel Hill. Here in North Carolina, you remember well the devastating toll of Hurricane Florence. That disaster killed 22 Americans. It led to $24 billion in damage and left a million North Carolinians without power," Yellen said. As North Carolina is gearing up for several tight races in November, Yellen pitched the benefits of Democrats' new climate, health and tax law, the so-called Inflation ...

Miftah resigns as Pakistan FM, Ishaq Dar to return after 5-year exile

Ishaq Dar, who is set to take charge as Pakistan's finance minister after the resignation of Miftah Ismail, is scheduled to return to the country along with Prime Minister Shehbaz Sharif from London on Monday, according to media reports. The formal decision to put 72-year-old Dar in the driving seat of the cash-strapped country's financial affairs was taken in during a meeting between Prime Minister Shehbaz Sharif and his elder brother Nawaz Sharif in London on Saturday. Both the finance minister Miftah Ismail and his successor Ishaq Dar were present in the meeting, besides other leaders of Pakistan Muslim League-Nawaz (PML-N). The Prime Minister in a statement on Sunday announced the appointment of Dar, who has been on self-exile since 2017 after being accused in a corruption case. Ismail handed over his resignation to the elder Sharif, who is out of politics due to a conviction in corruption cases but his decisions are considered binding on the party. I worked to the best of my

Pakistan's economic woes: FDI slumps 26% in first 2 months of FY23

Amid economic crisis in Pakistan, Net Foreign Direct Investment (FDI) in the country fell 26.1 pc during the first two months of the ongoing fiscal year (FY23), clocking in at just USD 169.5 million

Indian envoy calls on Sri Lankan PM Gunawardena, discusses bilateral issues

Indian High Commissioner to Sri Lanka Gopal Baglay has called on Prime Minister Dinesh Gunawardena and discussed wide-ranging bilateral issues, including investments, shared heritage and capacity building in the crisis-hit island nation. India has been the biggest provider of aid this year to its southern neighbour, which is fighting its worst economic crisis in more than seven decades and struggling to pay for imports. The Indian High Commission last week held the first round of talks with the Sri Lankan Government on restructuring the bilateral official debt of the island nation. The discussions symbolise India's support to early conclusion and approval of a suitable IMF Programme for Sri Lanka, for which financing assurances from creditors to make Sri Lanka's debt sustainable are required, it had said in a statement after the talks. "High Commissioner called on H.E PM @DCRGunawardena. Discussed broad ranging bilateral issues of common interest including investments, shared herit

Sri Lanka's inflation jumps to 70.2% amidst worst-ever economic crisis

Sri Lanka's inflation surged to 70.2 per cent in August from 66.7 per cent a month ago as the island nation is grappling with the worst economic crisis, according to official data released on Thursday. The National Consumer Price Index (NCPI) which determines how much people spend on a selected basket of goods and services grew 2.5 per cent in August with food prices rising 1.7 per cent and non-foods rising 3.2 per cent. The non-food inflation surged to 57.1 per cent in August from 52.4 per cent in July as there was a sharp hike in electricity tariffs. However, the monthly prices eased to 3.2 per cent, from 6.7 per cent in July. The core prices measured, leaving the volatile items such as food, energy and transport accelerated in August to 60.5 per cent, from 57.3 per cent in July. According to official data, food prices have risen by 84.6 per cent, compared to 82.5 per cent in July while the changes in prices measured monthly, decelerated to 1.7 per cent, from 4.6 per cent in ...

Fallen Rajapaksas back Wickremesinghe as Lanka's creditors seek answers

Much has changed since demonstrators drove Gotabaya Rajapaksa from office in July, the climax of months of protests after record-high inflation and depleted currency reserves bankrupted the nation

UK PM Liz Truss says she'll slash taxes despite economic crisis

UK Prime Minister Liz Truss said Tuesday that she's ready to make unpopular decisions such as boosting bonuses for wealthy bankers in order to get the country's sluggish economy growing. Speaking before an emergency government budget statement on Friday, Truss said tax cuts were key to spurring economic growth, even though they benefit the wealthiest more than the poorest. We do have to take difficult decisions to get our economy right, Truss said. We have to look at our tax rates. So corporation tax needs to be competitive with other countries so that we can attract that investment. Truss, who has been prime minister for just two weeks a period overshadowed by the death of Queen Elizabeth II faces immediate pressure to deliver on her promises to tackle a cost-of-living crisis walloping the UK and an economy heading into a potentially lengthy recession. She has already announced a cap on household energy bills that means average costs for heating and electricity will be no more t

India starts debt-restructuring talks with Sri Lanka, vows support

"The discussions held in a cordial atmosphere symbolise India's support to early conclusion and approval of a suitable IMF programme for Sri Lanka," the High Commission said.

Nations' leaders meet at UN amid rising global turbulence, war, food crisis

Facing a complex set of challenges that try humanity as never before, world leaders convene at the United Nations this week under the shadow of Europe's first major war since World War II a conflict that has unleashed a global food crisis and divided major powers in a way not seen since the Cold War. The many facets of the Ukraine war are expected to dominate the annual meeting, which convenes as many countries and peoples confront growing inequality, an escalating climate crisis, the threat of multiple famines and an internet-fuelled tide of misinformation and hate speech all atop a coronavirus pandemic that is halfway through its third year. For the first time since the United Nations was founded atop the ashes of World War II, European nations are witnessing war in their midst waged by nuclear-armed neighbouring Russia. Its Feb 24 invasion not only threatens Ukraine's survival as an independent democratic nation but has leaders in many countries worrying about trying to preserve