The International Monetary Fund (IMF) on Tuesday cut its 2021 economic growth forecast for Asia to 6.5 per cent, citing “new peaks of the pandemic cycle.” Many countries in the region have reported record coronavirus-related deaths and case numbers in the months since the IMF’s April forecast of around 7.5-per-cent growth for this year. “The pandemic’s resurgence has triggered lockdowns that are hampering the recovery,” the IMF said, in its latest Asia-focused economic outlook. Despite the impact of the virus and the harsh restrictions applied in countries such as Australia and Malaysia, Asia is nonetheless is likely to remain the world’s fastest-growing region, the IMF said, while warning that the pandemic is widening a “divide” between the region’s advanced economies and their “emerging” or “developing” counterparts.
Much of East Asia and the Pacific faces far slower economic growth than was expected a few months ago, according to the World Bank, which on Tuesday slashed its outlook for most of the region’s 18 countries. Measured without China, the rest of the East Asia and Pacific’s “developing” economies are set to expand by 2.5 per cent this year, the bank warned, cutting a forecast of 4.4 per cent made in April before regional coronavirus case numbers and deaths soared. The less rosy outlook is due to pandemic restrictions “constraining economic activity,” according to the bank. It said the Delta variant and attempts to slow its spread were “disrupting production” and hindering prospects of a recovery.
DUBLIN — Ford’s Cologne factory is to pause production of Fiesta models due to a shortage of semiconductors usually sourced from Malaysian factories, which have been hit hard by the coronavirus pandemic and related government restrictions. The shutdown is to begin on Thursday and last at least two weeks, the company said on Wednesday, and comes as factories around the world are being hit with shortages of computer chips and other components due to manufacturing supply chains snapping due to pandemic curbs. Toyota and Volkswagen are among the other car brands to recently warn of slowing production due to tightening supplies of chips. According to Capital Economics, with “virus disruption” likely to last “at least the next couple of months,” the global shortage of chips is “unlikely to get better any time soon.”
DUBLIN — Pandemic restrictions have completely or partly closed two-thirds of destinations worldwide to international tourism, according to the World Tourism Organization (UNTWO), a United Nations agency. One year on from the World Health Organization labelling the novel coronavirus outbreak a pandemic, 69 out of 217 destinations remain “completely closed,” the UNTWO said on Monday in its latest Travel Restrictions Report. Around the same number of destinations are “partially closed,” the UNWTO calculated. Thirty-eight of the 69 completely-closed destinations have been that way for at least 40 weeks, the UNWTO said, noting “regional differences” in how curbs are applied.
DUBLIN — Most East Asian countries “innovate less than would be expected given their per capita income levels” and could therefore struggle to sustain recent economic growth, according to the World Bank. Countries in the region are dogged by “insufficient staff skills and limited financing options,” the bank said in a report published late Tuesday, with firms often seeming wary of investing in innovation because “policies and institutions are often not aligned with firms’ capabilities and needs.” Lower-than-expected innovation could lead to questions about “whether the region’s past model of development can continue to deliver rapid growth and poverty reduction,” the bank said.
DUBLIN — Global trade shrank by 9 per cent in 2020 despite a late-year recovery in East Asia, according to estimates published on Wednesday by the United Nations Conference on Trade and Development (UNCTAD). The revival as “uneven,” with 8-per-cent fourth quarter growth in global merchandise or goods trade but stagnation in services, UNCTAD said.. While international commerce was “greatly affected” by “economic and social disruptions brought about by Covid-19,” East Asia registered “gains in global market share” after being able to “better weather the challenges of the pandemic,” according to the UN trade body.
DUBLIN — Chinese President Xi Jinping told Asia-Pacific leaders – including US President Donald Trump – on Friday that Beijing will “give positive consideration to the idea of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).” The CPTPP is the revised version of the Trans-Pacific Partnership (TPP), a regional trade deal promoted by the US during the 2008-16 Obama administration. The US withdrew from the TPP shortly after Trump took office in early 2017, prompting the 11 other signatories to rewrite the agreement, which Britain is also interested in joining. Xi and Trump were taking part in the Asia-Pacific Economic Cooperation (APEC) summit, which is being hosted by Malaysia, but taking place by video link due to the coronavirus pandemic.
DUBLIN — International travel has plummeted during the novel coronavirus pandemic, with nowhere worse affected than the Asia-Pacific region, according to United Nations tourism body data.International arrivals across the region have dropped 72 per cent so far in 2020, according to the data, which was compiled for the Madrid-based World Tourism Organization’s (UNWTO) new Tourism Recovery Tracker.International arrivals in the Asia-Pacific were down 99 per cent year-on-year, a standstill that came after countries imposed strict lockdowns and holiday bans aimed at slowing the spread of the virus. China, Japan and South Korea were among the worst affected, with the UNWTO tracker showing an 83-per-cent drop in tourist arrivals across northeast Asia as most countries prohibited all but essential travel.
KUALA LUMPUR — Singapore’s Prime Minister Lee Hsien Loong fears rising tensions between the US and China could undermine security and economic growth across Asia and called on both sides to pull back from confrontation. Lee flagged his concerns in an article titled “The Endangered Asian Century” published in the US journal Foreign Affairs, which has a history of running watershed essays by policymakers involved international relations.Fearing that smaller Asian countries could be forced to take sides if intransigence grows between the world’s two biggest economies, Lee called for cooperation between the US and China, even as tensions rise over the coronavirus pandemic, trade, the disputed South China Sea, Taiwan and Hong Kong. “The two powers must work out a modus vivendi that will be competitive in some areas without allowing rivalry to poison cooperation in others,” Lee implored.
KUALA LUMPUR — The market for synthetic drugs, including methamphetamine, continues to grow in Asia despite the coronavirus crisis, a UN report said. “While the world has shifted its attention to the Covid-19 pandemic, all indications are that production and trafficking of synthetic drugs and chemicals continue at record levels in the region,” said Jeremy Douglas of the UN Office on Drugs and Crime (UNODC). The findings, according to a new report by the agency, that relies on “data from 2019 and in some cases up to the first quarter of 2020,” are something of a surprise. “It is hard to imagine that organized crime have again managed to expand the drug market, but they have,” said Douglas, the agency’s Bangkok-based representative for Southeast Asia and the Pacific. Police in Bangkok arrested three men on Thursday while confiscating over a million meth pills, while recent weeks have seen Myanmar’s military and police in Hong Kong seizing drugs and manufacturing equipment in separate raids.