Despite optimism about global economy, IMF warns of pandemic poverty rise – dpa international

Would-be shoppers in Castlebar in Ireland during the brief period between the country's 2nd and 3rd lockdowns. Retailers have suffered due to countries veering in and out of lockdown since the start of the pandemic (Simon Roughneen)

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

Most sports in ireland have been banned as part the current lockdown, leaving pitches such as this in the west of Ireland empty and unused (Simon Roughneen)

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.

Lockdowns leave 10-trillion-dollar hole in global economy – dpa international

Pandemic restrictions have left usually-busy streets empty, such as in this west of Ireland town as seen in March 2021, nearly 3 months into Ireland’s 3rd stay-home lockdown (Simon Roughneen)

DUBLIN — A stronger-than-expected rebound this year will still leave the world down an estimated 10 trillion dollars due to the coronavirus pandemic and lockdowns, according to the United Nations Conference on Trade and Development (UNCTAD). Although the global economy could expand by 4.7 per cent in 2021, it will nonetheless wind up “short of 10 trillion dollars” – about twice Japan’s gross domestic product (GDP) – compared to if the pandemic never happened, UNCTAD said on Thursday. Last year, the global economy was hit by what UNCTAD described as “its sharpest annual drop in output since statistics on aggregate economic activity were introduced in the early 1940s.” While wealthy economies have proposed huge damage-limitation fiscal spending, such as the United States’ 1.9-trillion-dollar “stimulus package,” and while China returned to growth in late 2020, people in smaller and poorer countries are struggling, UNCTAD warned.

Ireland’s GDP up 3.4 per cent in 2020 but other measures show decline – dpa international

Sign outside business park in Castlebar, Ireland. IDA Ireland is the country's main foreign investment agency (Simon Roughneen)

DUBLIN — Ireland’s gross domestic product (GDP) grew by an estimated 3.4 per cent last year, according to the Central Statistics Office (CSO), an expansion driven by foreign business and exports but coming as domestic output shrank. “Multinational sector growth was 18.2 per cent in 2020 while non-MNE [multinational enterprise]-dominated sectors declined by 9.5 per cent,” the CSO said on Friday. Ireland reported a record 160.8 billion euros (198 billion dollars) in goods exports last year, but businesses geared towards the small domestic market “experienced significantly lower levels of economic activity,” according to the CSO’s Jennifer Banim, with hotels, restaurants and construction hit hard as personal spending fell by 9 per cent. US multinationals in sectors that have enjoyed surging global demand during the pandemic, including pharmaceuticals and big tech, have European headquarters in Ireland – drawn by low taxes and EU membership. Amazon and Microsoft were among the American corporate giants to announce expansions in Ireland last year. According to Finance Minister Pascal Donohoe, “the pharma and ICT sectors recorded extraordinary export growth, driven by blockbuster immunological drugs, Covid related products, and the shift to home-working.”

Global trade plummeted in 2020 before East Asia drove late-year revival – dpa international

Customers lining up at a mobile phone shop inside a Kuala Lumpur mall on May 4 2020 (Simon Roughneen)

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.

Irish economy recovers between lockdowns but further losses loom – dpa international

DUBLIN — Ireland’s gross domestic product (GDP) grew 11.1 per cent during the third quarter, according to official estimates published Friday, suggesting the country’s economy saw some temporary respite between two separate lockdown periods. Jennifer Banim of the Central Statistics Office (CSO) said the “easing of Covid-19 related restrictions led to growth across almost all sectors of the economy in quarter 3.” The CSO data show Ireland’s economy rebounding after GDP contracted by around 6 per cent during the second quarter, which coincided with the country’s first coronavirus lockdown. Restaurants and pubs that serve meals reopened on Friday, after the end of a six-week second lockdown. Non-essential retail reopened earlier this week.  Ireland’s daily coronavirus case numbers, which topped the 1,200-mark in October, had dropped to below 200 by Thursday. The second pandemic wave was far less deadly than the first, according to official data released Friday. The average mortality rate in November was eight people per 1,000 confirmed cases, down from a peak of 74 per 1,000 in April, the CSO reported. Hospitalisations were 58 per 1000 cases in November, down from 192 in March.  

Pandemic boosts Ireland’s exports but restrictions hammer local commerce – dpa international

Some retailers open, some not, along central Dublin street in June (Simon Roughneen)

DUBLIN — Ireland’s small businesses were hit hard by the coronavirus pandemic while sectors dominated by foreign investors grew, according to official estimates. The Central Statistics Office reported on Thursday that gross value added in “non-MNE [multinational enterprise] dominated sectors” decreased by 19.8 per cent in the second quarter. The CSO estimated that the “foreign-owned MNE dominated sector increased by 1.1 per cent over the same period.” The state-funded Economic and Social Research Institute (ESRI) described Ireland’s experience in lockdown as “a tale of two economies.” This “duality in performance” is down to “a concentration of Irish exports in lockdown-resistant sectors” such as computer services and pharmaceuticals.

Singapore to spend a fifth of GDP on curbing economic impact of virus – dpa international

KUALA LUMPUR — Singapore will spend an additional 33 billion Singapore dollars (23.2 billion US dollars) to offset the economic impact of coronavirus, Finance Minister Heng Swee Keat announced in parliament on Tuesday. The revised fiscal plan is the wealthy city-state’s fourth budget announcement since February and takes total spending pledges to just under 100 billion Singapore dollars – equivalent to almost 20 per cent of gross domestic product (GDP). Labelling the projected spending as a “fortitude budget,” Heng, Prime Minister Lee Hsien Loong’s deputy, said the outlay is necessary due to the “unprecedented uncertainty” caused by the pandemic. Earlier on Tuesday, Singapore’s Ministry of Trade and Industry said that GDP shrank 4.7 per cent in the first quarter of the year – indicating that the pandemic ravaged the trade-dependent economy even before the lockdown was imposed in April.

Asia-Pacific region faces sharp recession due to Covid-19 – dpa international

Many Asian countries have been on lockdown for weeks, with exceptions made for essential services such as supermarkets (Simon Roughneen)

KUALA LUMPUR — Members of the Asia-Pacific Economic Cooperation (Apec), a 21-country grouping that includes China, Japan and the United States, face collective economic losses of 2.1 trillion dollars in 2020 due to the new coronavirus pandemic. In a report published on Monday, the Singapore-based Apec Secretariat forecast that the region’s economies will shrink by 2.7 per cent this year due to the pandemic. The economic losses exceed the gross domestic products of Canada and South Korea, the fourth and fifth biggest economies in Apec, going by International Monetary Fund (IMF) country rankings. Apec member states account for around 40 per cent of the rouhgly 2.4 million cases of Covid-19, the disease caused by the virus.

Singapore to spend 38 billion dollars as pandemic pummels economy – dpa international

KUALA LUMPUR — Singapore’s Finance Minister Heng Swee Keat proposes spending up to 55 billion Singapore dollars (38 billion US dollars) to cushion the wealthy city-state against a looming recession triggered by coronavirus. “As an open economy, we will be deeply impacted by these global shocks,” Heng, who doubles up as Prime Minister Lee Hsien Loong’s deputy, told parliament on Thursday afternoon. Announcing what he termed a “resilience budget,” Heng projected that Singapore could spend up to 11 per cent of its gross domestic product to counter what he said could be “a recession at least as bad as the global financial crisis.” Singapore, which has the world’s fourth-highest GDP per capita according to International Monetary Fund (IMF) rankings, will spend over 11 billion dollars of its estimated hundreds of billions of dollars in reserves, Heng said.