### Summary
The current account deficit in Pakistan reduced by 36% in July FY24 compared to the previous year, but July saw a deficit for the first time in four months.
### Facts
- 💸 The current account deficit decreased by 36% to $809 million in July FY24.
- 💰 July's current account was in deficit for the first time in four months, with June having a surplus of $504 million.
- 📉 FY23 successfully reduced the current account deficit to $2.387 billion from $17.481 billion in FY22.
- 🌍 The large current account deficit in FY23 led to a risk of sovereign default, which was addressed with assistance from the IMF, Saudi Arabia, and the UAE.
- 📉 Goods exports in July decreased by $101 million, while goods imports rose by 23.5% to $4.220 billion.
- 💼 Pakistan's services imports were $811 million, higher than services exports of $538 million in July, resulting in a net decline of $273 million.
- 📉 The trade deficit in FY23 reduced by 42.9% to $27.59 billion.
Source: [Dawn](https://www.dawn.com/news/1651754/)
### Summary
Mexico has become the top trading partner of the United States, surpassing China and Canada, with trade reaching $263 billion in the first four months of this year. This shift reflects an accelerated move towards "nearshoring" and regional trade, driven by factors such as increased protectionism and the desire for faster delivery times.
### Facts
- 🇲🇽 Mexico has overtaken China and Canada as the top trading partner of the US since the start of the pandemic.
- 🌍 The $263 billion worth of goods traded between Mexico and the US in the first four months of 2021 accounted for 15.4% of total US trade.
- 🌎 In comparison, trade totals with Canada and China were 15.2% and 12% respectively.
- 🚚 The practice of "nearshoring," where countries bring supply chains closer to home, has gained momentum, driven by factors such as increased protectionism and the demand for faster delivery times.
- 📉 The economic chaos of 2020 continues to shape the world economy, with regional trade and nearshoring becoming more prominent.
Please note that the article also mentions the improving relationship between the US and China, as well as the potential for growth in trade between Mexico and the US. However, these points are not included in the bulleted facts above.
### Summary
The latest trade figures for New Zealand show a larger-than-expected $1.1 billion trade deficit for July, mainly due to a 14% decrease in dairy exports and the economic slowdown in China.
### Facts
- 📉 New Zealand experienced a bigger-than-expected trade deficit of $1.1 billion in July, driven by a 14% drop in dairy exports.
- 📉 The 12-month running deficit is $15.8 billion, lower than the previous record of $17.1 billion in May but higher than the $12 billion deficit a year ago.
- 🌍 The overseas merchandise trade statistics focus on imports and exports of merchandise goods, while the balance of payments figures encompass the country's total transactions with the rest of the world.
- 📊 The current account deficit decreased to $33 billion in March, accounting for 8.5% of GDP compared to 9% in December.
- 📉 In July, goods exports fell by $890 million (14%) to $5.5 billion, while goods imports fell by $1.2 billion (16%) to $6.6 billion.
- 🥛 The largest export commodity group, including milk powder, butter, and cheese, dropped by $350 million (19%) to $1.5 billion compared to the previous year.
- 🔽 Exports to China decreased by $407 million (24%) year-on-year, with notable declines in meat and edible offal, preparations of milk, cereals, flour, and starch, and milk powder, butter, and cheese.
### Summary
India's total exports and imports of goods and services surpassed $800 billion in the first half of 2023, with a healthy growth in the services sector offsetting a slowdown in global demand.
### Facts
- 📈 Exports of goods and services rose by 1.5% to $385.4 billion in January-June 2023 compared to the same period in 2022.
- 📉 Imports declined by 5.9% to $415.5 billion during the first half of 2023, compared to January-June 2022.
- 💵 Standalone goods exports dropped by 8.1% to $218.7 billion, while imports contracted by 8.3% to $325.7 billion.
- 💼 Services exports grew by 17.7% to $166.7 billion, while imports rose by 3.7% to $89.8 billion during the six-month period.
- 💰 The depreciation of the Indian Rupee didn't prevent the decline in merchandise exports, and weak global demand and loss of competitiveness in labor-intensive sectors contributed to the modest decline.
- 🌍 Several factors, including conflicts, inflation, monetary policies, and financial uncertainty, are expected to weaken world trade in 2023.
- 🛡️ India should focus on increasing product quality and supply chain competitiveness, retain policy space in free trade agreements and Indo-Pacific Economic Framework for Prosperity (IPEF), and be prepared to respond to unilateral policy decisions.
- 📊 Among the product categories contributing to India's exports, 11 out of 29 registered positive export growth, while 18 declined during January-June 2023.
- 📱 Smartphone exports surged to $7.5 billion in the first half of 2023, up from $2.5 billion in the same period in 2022.
- 🌐 India's exports declined in 134 of the 240 countries it exports goods to, with major declines observed in the USA, UAE, China, Bangladesh, and Germany.
- 🌐 India's export promotion should focus on the 41 countries where its exports exceed $1 billion, accounting for 87% of its exports.
- 👥 The top 15 countries with which India has the highest trade deficit include China, Russia, Saudi Arabia, Iraq, and Switzerland.
- 📉 The share of free trade agreement partners in India's merchandise exports decreased from 30.1% in the first half of 2022 to 26.8% in 2023.
- ⛽ Import of crude petroleum declined by 7.6% to $73.2 billion in January-June 2023, with Russia's share in India's import of petroleum crude increasing significantly.
- 🌍 Import growth from major suppliers like Iraq, Saudi Arabia, and the UAE declined during this period.
US trade has shifted away from China due to policies enacted by the Biden and Trump administrations, but US reliance on China-linked supply chains has not necessarily been reduced and consumers have faced higher costs, according to new research presented at a Federal Reserve economic symposium.
US imports of consumer goods, particularly home electronics, experienced a significant decline in the second quarter of 2023, following the end of the Covid-induced work-from-home electronics boom, while US manufacturing also slowed, indicating challenges in stimulating demand; however, claims that this decline in imports is solely due to re-shoring are false, as imports from US allies such as Mexico, Vietnam, and India have increased in tandem with China's declining exports to the US.
Smartphone sales in the country declined in the second quarter, but at a slower rate, as consumers limited their spending due to high commodity prices, according to IDC.
The U.S. dollar declined due to weaknesses in economic growth, leading to a boost in the performance of gold and U.S. equities, while other global assets experienced mixed price movements throughout the week.
U.S. manufactured goods orders experienced a significant 2.1% decline in July, the first drop in four months, due in part to higher interest rates impacting business equipment spending.
China's share of US goods imports has dropped to its lowest level since 2006, as American companies reorganize supply chains to reduce dependence on China and shift to countries like Mexico and Vietnam.
China's imports and exports experienced a monthly decline in August, with exports falling by 8.8% and imports falling by 7.3%, indicating ongoing challenges despite some slight improvement.
The US economy is displaying resilience with jobless claims at their lowest since February and increased consumer spending on travel and experiences, despite challenges such as the resumption of student loan payments and oil production cuts by Saudi Arabia and Russia. Apple's stock has also been affected by the Chinese government's expanding iPhone ban, reflecting the broader tensions between the US and China.
Apple's market value has dropped by 10% due to factors such as China's ban on the iPhone for government employees and competition from a Chinese rival, leading to concerns about slowing growth and the need for new products with high growth potential.
India's merchandise exports dropped by 6.9% in August, marking the seventh consecutive month of decline, due to weak external demand, while the merchandise trade deficit reached a 10-month high of $24.16 billion driven by higher crude oil prices and robust domestic demand.
The US economy experienced a slowdown in August due to a decrease in industrial activity, according to data from the Federal Reserve Bank of Chicago.
Consumer spending in the US grew at a weaker pace than previously estimated in the second quarter, indicating that Americans have been cutting back on their spending more than expected.
Gold prices trade near session lows as US GDP data shows the economy grew in line with expectations but consumer spending fell more than anticipated.
Consumer spending in the US increased by 0.4% in August, while core inflation fell below 4.0% for the first time in over two years, potentially reducing the likelihood of an interest rate hike by the Federal Reserve.
Summary: The U.S. stock market had a bad quarter, with all indexes falling, while the World Bank lowered its growth forecast for developing economies in East Asia and the Pacific, and China's demand for commodities continues to grow despite the downgrade. Additionally, a last-minute spending bill was passed to avoid a government shutdown, and this week's focus will be on the labor market.
The World Trade Organization has revised its forecast for global trade growth, halving its estimate due to rising interest rates and various economic challenges, with a particular impact on iron, steel, office equipment, textiles, and clothing. The slowdown in trade has raised concerns about the potential negative impact on living standards worldwide, particularly in poor countries.
Kenya's trade deficit has decreased by $6.8 billion due to lower import bills and strong export performance, particularly in tea and horticulture.
The US federal budget deficit has reached $1.7 trillion due to a decrease in revenue, with the Biden administration attributing the decline to a drop in federal income taxes and increased spending on initiatives such as green energy and infrastructure.
