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.
Pandemic’s economic impact “pales” compared to population decline, OECD says – dpa international
While the coronavirus pandemic upended state spending plans and left economies reeling, its impact is likely to pale in comparison to challenges such as ageing populations, according to the Organisation for Economic Co-operation and Development (OECD). The Paris-based group’s secretariat said on Tuesday that before the pandemic, governments were facing health spending rises of over two percentage points of gross domestic product (GDP) between now and 2060 and around the same for pensions in countries with what the OECD labelled “unfavourable demographics.” By comparison, recently accrued government debt to pay for pandemic-related social and health spending is likely to add “only about 1/2 percentage point of GDP to long-run fiscal pressure in the median country,” according to the OECD.
IMF cuts US and global GDP growth forecasts, citing “uncertainty” – dpa international
The International Monetary Fund (IMF) on Tuesday cut its global economic growth forecast for 2021 to 5.9 per cent, citing “uncertainty about how quickly the [coronavirus] pandemic can be overcome.” In its latest World Economic Outlook, the IMF pared 0.1 percentage points off its July projection, in part due to “advanced economies” being hit by supply-chain disruptions that were exacerbated by recent pandemic outbreaks and lockdowns in Asia’s manufacturing hubs. Gita Gopinath, the IMF’s director of research, said “global recovery continues but momentum has weakened.” The Fund said it expects the world’s biggest economy, the US, to grow by 6 per cent this year, one percentage point down on what it projected in July, with China, the second-biggest, in line for 8-per-cent expansion.
World Bank cuts East Asia GDP growth outlook, citing pandemic curbs – dpa international
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.
OECD says most big economies yet to shake off virus effects despite recent growth – dpa international
DUBLIN — Most of the world’s big economies are running below pre-pandemic levels despite “accelerating” growth in the second quarter of this year, according to the Organisation for Economic Co-operation and Development (OECD). Overall gross domestic product (GDP) across the OECD remains 0.7 per cent below that reported at the end of 2019, shortly before the coronavirus pandemic was declared, the Paris-based OECD said on Monday. That’s despite GDP expanding 1.6 per cent across the Group of 7 (G7) economies in the second quarter, up from 0.4 per cent in the first three months of the year. There were “strong variations” among what the OECD calls the “Major Seven” economies, which does not include China, which does not inclide the world’s second biggest GDP after the the US. Britain grew growing the fastest of the 7, at almost 5 per cent from April to June, after a near 2-per-cent contraction during the previous three months, when, like in many Western countries, economically-debilitating pandemic restrictions were in place.
OECD sees uncertainties and moderating growth ahead for world’s big economies – dpa international
DUBLIN — The pace of growth in “major economies” is likely to moderate, the Organisation for Economic Co-operation and Development (OECD) said on Tuesday, warning of “persisting uncertainties” despite the lifting of pandemic restrictions in many countries. The Paris-based OECD said China could expect “steady growth” in industry, while Britain, much of the European Union, Japan and the US face a general “moderating pace of growth at above-trend level.” For India, which recently was hit with a huge coronavirus surge, “stable” growth prospects have been forecast, but France and Brazil respectively face “below trend” and “slowing” growth. The forecasts came after lower-than-expected second-quarter gross domestic product growth (GDP) numbers for the US and China, by far the world’s two biggest economies.
Global foreign investment to recover lost ground this year – dpa international
DUBLIN — Foreign direct investment should revive in 2021, the United Nations Conference on Trade and Development (UNCTAD) said on Monday, after a 35 per cent global drop last year when lockdowns “slowed down existing investment projects.” According to UNCTAD’s World Investment Report 2021, global investment should “recover some lost ground” by growing 10-15 per cent, as multinational enterprises resume work paused due to “prospects of a recession” last year. The global economy shrank by over three per cent in 2020 but is expected to rebound this year with 5-6 per cent growth, according to recent World Bank and OECD estimates. Though overseas investment is expected to bounce back in tandem with GDP expansion, it will remain 25 per cent below 2019 levels after a tough 2020, according to Unctad’s James Zhang.
OECD says world economy to grow at an ‘uneven’ 6 per cent this year – dpa international
DUBLIN — The global economy could grow by “nearly 6 per cent” this year, the Organization for Economic Co-operation and Development (OECD) said on Monday, while warning that recovery from pandemic-related losses will be “very uneven.” Growth will be driven by the world’s three main economic powers, with China’s gross domestic product (GDP) set to expand by more than 8 per cent, the Paris-based OECD said. The US should be close behind, registering nearly 7 per cent GDP growth, with the European Union clocking a higher-than-usual 4.25 per cent.But while this year’s projected rebound would amount to “an impressive surge after the 3.5-per-cent contraction in 2020” it is unlikely to return living standards “to the level expected before the pandemic” by the end of next year, the OECD said in its 2021 Economic Outlook, which noted that pandemic-related curbs have made it more difficult to estimate GDP and “may have reduced the comparability of economic outcomes across countries.”
Despite optimism about global economy, IMF warns of pandemic poverty rise – dpa international
DUBLIN — The International Monetary Fund said on Tuesday the world economy could recover faster than expected this year, revising its January projection up by 0.5 percentage points to 6 per cent.The United States and China, the world’s two biggest economies, are likely to grow by 6.4 per cent and 8.4 per cent in 2021, driving the global rebound if pandemic-related economic curbs can be rolled back, the IMF said in a report published on Tuesday. But while “a way out of this health and economic crisis is increasingly visible,” according to the IMF’s Gita Gopinath, “divergent recovery paths” will likely result in increased poverty in so-called emerging markets and low-income countries, which could struggle to recover.
Unemployment stuck at around 25 per cent as Irish lockdown drags economy down – dpa international
DUBLIN — Unemployment in Ireland lingered near the 25-per-cent mark in March as a third pandemic lockdown continued to hammer the economy, according to official data released on Wednesday. Though the Central Statistics Office (CSO) said March’s 24.2 per cent unemployment was down slightly on February’s 24.8 per cent, pandemic restrictions continued “to have a significant impact on the labour market,” according to the CSO’s Catalina Gonzales. Many businesses were forced to close for a third time in less than a year after the Irish government imposed a third lockdown in December, less than a month after a second six-week lockdown ended. The government on Tuesday announced it will slowly unwind some of the measures from mid-April, saying people would be permitted “non-essential” journeys within their county of residence, beyond the current 5-kilometre limit.