Page 7 - Global Economy

IT sector hiring down 43% in Oct; recovery likely in Jan-March: Study

Ukraine war, funding cuts for start-ups, companies tightening spending among reasons for hiring decline

The future of Indian economy: Should it play the power game or values game?

India must decide what it wants to be - a country admired for its soft power and market, or an arbitrary state that can do what it wills with both individuals and businesses - writes T N Ninan

Explainer: The effect of Russian oil price cap, ban on global economy

Western governments are aiming to cap the price of Russia's oil exports in an attempt to limit the fossil fuel earnings that support Moscow's budget, its military and the invasion of Ukraine. The cap is set to take effect on Dec. 5, the same day the European Union will impose a boycott on most Russian oil its crude that is shipped by sea. The EU was still negotiating what the price ceiling should be. The twin measures could have an uncertain effect on the price of oil as worries over lost supply through the boycott compete with fears about lower demand from a slowing global economy. Here are basic facts about the price cap, the EU embargo and what they could mean for consumers and the global economy: WHAT IS THE PRICE CAP AND HOW WOULD IT WORK? U.S. Treasury Secretary Janet Yellen has proposed the cap with other Group of 7 allies as a way to limit Russia's earnings while keeping Russian oil flowing to the global economy. The aim is to hurt Moscow's finances while avoiding a sharp

Global economic growth to be as weak next year as 2009, forecasts IIF

The world economy will be as weak next year as it was in 2009 after the financial crisis as the conflict in Ukraine risks becoming a "forever war," the Institute of International Finance said

China's tension with West 'very good opportunity' for India: Stellantis CEO

India will stay ahead of the curve amid the global economic slowdown and it offers a lot of potential for growth, according to multinational auto major Stellantis CEO Carlos Tavares. The country is also the best placed "superpower" that can leverage the opportunity arising out of the tension between the Western world (US and Europe) and China, he said here in an interaction. The company, which is gearing up to launch the electric version of its compact car C3 early next year, is also working on the possibility of exporting compact electric vehicles from the country to markets like Europe. "We all see that the global economy is going to slow down in 2023. That's also what all the competent administrations are predicting. They're also saying that India will be somewhere between 6 per cent and 7 per cent GDP growth. That's a lot," Tavares said. He further said, "So, if there was to be a concern, globally, ahead of the curve will be India, (with) 6 to 7 per cent growth." While reports

Retail inflation likely to ease in coming months: Finance ministry

The MER, however, warned that the global macroeconomic situation remained precarious and a recession in many advanced economies would impact India's exports

Recession unlikely in APAC region in coming year: Moody's Analytics

A recession is unlikely in the APAC region in the coming year, although the area will face headwinds from higher interest rates and slower global trade growth, Moody's Analytics said on Thursday. In its analysis titled 'APAC Outlook: A Coming Downshift', Moody's said India is headed for slower growth next year more in line with its long-term potential. On the upside, inward investment and productivity gains in technology as well as in agriculture could accelerate growth. But, if high inflation persists, the Reserve Bank of India would likely take its repo rate well above 6 per cent, causing GDP growth to falter. In August, Moody's had projected India's growth to slow to 8 per cent in 2022 and further to 5 per cent in 2023, from 8.5 per cent in 2021. It said the economy of the Asia-Pacific (APAC) region is slowing and this trade-dependent region is feeling the effects of slower global trade. Global industrial production has remained "fairly level" since it peaked in February just pr

UK to be second weakest performer of world's big economies next year

In its half-yearly economic outlook, the OECD said that UK's economy would expand by 4.4 per cent this year - the sixth fastest in the G20 - but contract by 0.4 per cent next year

China's anti-Covid curbs spur fears of global business, trade impact

Anti-virus controls that are confining millions of Chinese families to their homes and shut shops and offices are spurring fears of further damage to already weak global business and trade. The ruling Communist Party promised on Nov 11 to reduce disruptions from its zero- COVID strategy by making controls more flexible. But the latest wave of outbreaks is challenging that, prompting major cities including Beijing to close off populous districts, shut stores and offices and order factories to isolate their workforces from outside contact. On Tuesday, the government reported 28,127 cases were found over the past 24 hours in areas throughout China, including 25,902 with no symptoms. China's infection numbers are lower than those of the United States and other major countries. But the ruling party is sticking to zero COVID, which calls for isolating every case, while other governments are relaxing travel and other controls and trying to live with the virus. Global stock markets fell ..

War for talent, inflation spark highest pay hikes since 2007: Study

Overall salary increases in the US will be above 4.2% this year

India should nudge US to appoint judges to hear appeals at WTO

Dispute settlement is the central pillar of the multilateral trading system, and the WTO's unique contribution to the stability of the global economy

Trade divide could cost global economy $1.4 trillion: IMF chief Georgieva

Trade spats could cut 1.5% from global GDP; 3% in Asia

With war in Europe, world encountering food, energy crisis: Shaktikanta Das

The war in Europe brought with it new challenges, just when the economy was about to normalise fully despite the third wave of the COVID-19 pandemic and suddenly, the world encountered a severe food and energy crisis, Reserve Bank Governor Shaktikanta Das said on Saturday. Delivering the inaugural address at the annual research conference of the Department of Economic and Policy Research of RBI here, Das said the COVID-19 pandemic crisis created an opportunity to explore and harness the power of big data and strengthen direct feedback mechanisms while working from home. He further said the pandemic also posed new research issues and analytical challenges for policy-making as it caused a demand shock or a supply shock, the size and nature of policy stimulus required, and their effectiveness, among others. The RBI Governor said the first major challenge was data collection during the first wave of the pandemic and the associated statistical break in data. During the second wave which

Technical recession has become more likely, says European Central Bank

The European Central Bank sees an increased likelihood of a recession in the 19 countries that use the euro currency, warning that soaring energy prices and high inflation fed by Russia's war in Ukraine have raised risks for bank losses and turmoil on financial markets. People and firms are already feeling the impact of rising inflation and the slowdown in economic activity, ECB Vice President Luis de Guindos said. As the bank released its twice-yearly assessment of eurozone financial stability on Wednesday, de Guindos said that "risks to financial stability have increased, while a technical recession in the euro area has become more likely. A chart published with the report indicated an 80 per cent chance of recession in the eurozone and United Kingdom in the year ahead and a 60 per cent probability in the US. Many economists and the European Union's executive Commission have already predicted a technical recession for the last three months of year and the first part of next year

National security, building cybersecurity products on our agenda: DSCI CEO

'Tremendous amount' of data will be flowing into India, says leader of research and policy group

IMF says global economic outlook getting 'gloomier', risks abound

IMF blamed the darker outlook on tightening monetary policy triggered by persistently high and broad-based inflation, weak growth momentum in China, and ongoing supply disruptions

Inflation, Ukraine war make world economy gloomier than last month: IMF

In last month's WEO, IMF cut its forecast for global growth next year to 2.7%, from 2.9% seen in July and 3.8% in Jan, adding that it sees a 25% probability that growth will slow to less than 2%

Must avoid division of global economy into camps led by US, China: UN chief

Guterres said ASEAN countries are well placed to bridge this divide, stressing that "we must have one global economy and global market with access for all."

'Debt distress, climate action to be challenges for India as G20 President'

"All major bilateral creditors, including China, must cooperate constructively to deliver on their G20 commitment to provide meaningful debt relief, " US Treasury Secretary Janet Yellen said.

Visiting India at a pivotal moment for global economy: US Treasury Secy

"Emerging markets and developing countries are particularly under pressure. Tens of millions more people face extreme poverty and hunger since Russia's war in Ukraine began."