Page 11 - Global Economy

Energy, inflation crises risk pushing big economies into recession: OECD

In a bleak report titled Paying the price of war, the Paris-based organisation noted that the conflict aggravated inflationary pressure when the cost of living was already rising quickly.

Global economy to grow at 2.7% in 2022, 2.3% in 2023: Moody's Analytics

Moody's Analytics predicted the global economy to grow at 2.7 per cent in 2022 and slow to 2.3 per cent in 2023

Gap widens between US, India on interest rate hikes since pandemic low

US has hiked rates by 75 basis points on Wednesday to help keep inflation in check

Russia war, virus and climate hurting world's poorest, warns OECD

Russia's war against Ukraine, the lingering coronavirus pandemic and the damage of climate change are putting intense pressure on the world's poorest, the Organization for Economic Cooperation and Development warned Monday. The Paris-based OECD reported that 60 states, territories and locations fell last year into the category of fragile contexts'' meaning they were exposed to economic, environmental, social and political risks that they didn't have the capacity to absorb. And that was before Russia invaded Ukraine and intensified their burdens. Monday's report designated the most places in such dire straits since the OECD began issuing its States of Fragility report in 2015. The 60 account for 24% of the world's population, 73% of those living in extreme poverty, 80% of those who died in conflicts and the vast majority of the world's hunger hotspots.'' And they are home to 95% of the record 274 million people the United Nations says need humanitarian assistance. We are in an era

FedEx troubles set off fresh worries among investors over global economy

The delivery giant's shares lost 21 per cent on Friday, its biggest one-day percentage drop ever

European stocks set for weekly loss as global economic outlook worsens

In the UK, retail sales fell more than expected, in another sign that the economy is sliding into recession as the cost-of-living crisis squeezes households' disposable spending

Oil steadies but remains on track for weekly decline on rate hike fear

Brent crude futures were up 25 cents, or 0.3%, at $91.09 a barrel by 0921 GMT but were down 1.9% for the week.

Barclays forecasts contraction in fourth quarter for major economies

Barclays forecast a slowdown in global growth to 2.2% in 2023 versus 2.8% this year, and warned that it expects advanced economies to contract in Q4 with zero growth next year

Global economy may avoid recession as inflation risks ease - JP Morgan

The global economy could avert a recession as data points to a potential soft landing, JP Morgan analysts said, while adding that the Federal Reserve might have "over-reacted" with the 75 basis point

A soft landing is a more likely scenario for the global economy: JPMorgan

"Economic data and investor positioning are more important factors for risky asset performance than central bank rhetoric," the strategists wrote. "We maintain a pro-risk stance"

Dwindling wage growth emerging as bigger worry, says Ind-Ra report

Even as the economic recovery gains momentum, dwindling wage growth is emerging as a bigger worry as this leads to tepid demand and resultant under-utilisation of capacity, further elongating the already-large output gap, according to a report. The households, which account for 44-45 per cent of the GVA, have witnessed their nominal wage growth declining to 5.7 per cent during FY17-FY21 from a high of 8.2 per cent during FY12-16. This means wage growth in real terms is close to just about 1 per cent, India Ratings said in a note on Thursday. This is in spite of the overall economy growing at 13.5 per cent, much lower than consensus estimates, in the first quarter of the current fiscal. Even the recent trend in wage growth at the rural and urban levels alludes to an erosion of the purchasing power of households. At the nominal level, wage growth in urban and rural areas was 2.8 per cent and 5.5 per cent year-on-year, respectively, but in real terms, which means adjusted for inflation

Turbulence ahead: A slowdown in global demand is underway

Pricing risks could be next, but monetary conditions can remain tight

IMF chief says India 'a bright spot' in an uncertain global economy

Both the leaders shared concerns on key downside risks to the global economy and the cross-border effects due to the geopolitical situation and tighter financial conditions

Job creation, wealth distribution priority over inflation: FM Sitharaman

The finance minister said if India and the United States joined efforts in growing their respective economies, they might be the engines of global growth within the next two decades

Volkswagen to list Porsche in one of biggest IPOs in years: Report

The offering could value Porsche at between 60 billion euros and €85 billion, equivalent to between $59.8 and $84.6 billion, according to analyst estimates

Global economic turmoil not to impact India's recovery, says Moody's

India's economic recovery is unlikely to be derailed by rising challenges to the global economy, higher inflation and tightening financial conditions, Moody's Investors Service on Tuesday said, affirming a stable outlook for the country's rating. Moody's saw the Indian economy expanding by 7.6 per cent in the current fiscal compared to 8.7 per cent growth in the last financial year that ended on March 31. For 2023-24, it estimates a 6.3 per cent GDP growth. It rates India at Baa3, the lowest investment grade rating. In October last year, it revised upwards the rating outlook to stable from negative. "The credit profile of India reflects key strengths, including its large and diversified economy with high growth potential, a relatively strong external position, and a stable domestic financing base for government debt," Moody's said in a note. Principal credit challenges include low per capita income, high general government debt, low debt affordability and limited government ...

Recalibrating policy priorities

As the global storm rages, emerging markets will have to quickly pivot from addressing the pandemic's scars to focusing on the 'twin deficits' to preserve macroeconomic stability

India is likely to become third largest economy by 2029: SBI report

As per the SBI report, India had surpassed the UK as the fifth largest economy as early as December 2021 itself

Oil prices fall 3% on recession fears; China factory data disappoints

Brent crude futures for October, due to expire on Wednesday, were down $3.56 at $95.75 a barrel following Tuesday's $5.78 loss

Water-related disasters to cost world economy $5.6 trn by 2050: Report

This year heavy rains have triggered floods that inundated cities in China and South Korea and disrupted water and electricity supply in India, while drought has put farmers' harvests at risk