Australia is building a domestic industry to supply the electric-vehicle manufacturers and decrease its dependency on mining and fossil fuels.
Pakistan's external vulnerabilities are set to worsen due to shrinking dollar inflows and increasing debt servicing, putting pressure on foreign exchange reserves and potentially leading to their depletion.
Turkey's central bank raised its key interest rate by a significant 750 basis points to 25% in an effort to control inflation, marking a shift towards more orthodox policies under the new governor appointed by President Erdogan, Hafize Gaye Erkan. The move comes after years of unorthodoxy and slashing rates in line with Erdogan's belief that high rates fuel inflation, which triggered a currency crisis and a significant decline in the lira's value.
The Delhi Police has proposed that the US and China reduce the number of vehicles in their G20 carcade, with the US going from 75-80 vehicles to 25 and China to about 20, due to logistical concerns.
The caretaker Prime Minister of Pakistan, Anwaar-ul-Haq Kakar, stated that the interim government will focus on rationalizing expenditures, generating revenue, and developing human resources during its short constitutional period, with a specific focus on bringing the undocumented economy and people into the tax net and investing in human resources. Kakar also emphasized the importance of a long-term partnership with the United States and highlighted Pakistan's contribution to global peace and economy, while expressing the need for close cooperation between the two countries to tackle climate challenges.
China's Premier Li Qiang faces significant challenges as he tries to navigate the country through an economic crisis caused by the pandemic and external pressures, including record-high youth unemployment, a property crisis, and faltering investor confidence, all of which have led to concerns about China's economic stability and long-term growth prospects.
South Africa is poised to expand its agricultural trade and globalize its economy as it enhances its position within the BRICS grouping, with the ZZ2 Farming Company using cutting edge technologies and tariff agreements to facilitate agricultural trade with other BRICS countries; the expansion of BRICS will create a powerful group of growth economies that will demand multilateral reforms, increase collaboration among growth economies, and enhance the use of regional currencies.
Saudi Arabia's robust diversification efforts, driven by Vision 2030 strategies, have resulted in a surge of business activities and economic growth, despite worldwide economic uncertainty and concerns over inflation and geopolitical tensions. The country's economic diversification journey has led to the opening of new sectors and advancements in fields such as tourism, media, finance, and clean energy, making it a regional economic and technology hub. Saudi Arabia's continued focus on sectors like mining, metals, hospitality, tourism, and clean energy, along with fiscal consolidation efforts and revenue-enhancing measures, are key to sustaining its economic diversification model.
The performance of Nvidia stock has been impressive, but other retailers have struggled, leading to concerns about the economy, such as credit card delinquencies, falling home sales, weakening manufacturing, and tightening lending standards. These factors suggest that a recession may be looming.
Employment growth in the US likely cooled and wage increases moderated in August, reducing the urgency for another interest-rate hike by the Federal Reserve and tempering inflation risks.
Engineering exports from India to Russia experienced a significant surge in July 2023, more than doubling expectations, while exports to the US and China faced setbacks, highlighting the need for Indian exporters to explore the untapped potential of African and Latin American markets.
India has become an attractive destination for global electronics manufacturers, with companies like Apple, Cisco, and Luxshare setting up manufacturing operations in the country to diversify from China and tap into India's large market, workforce, and vibrant presence of micro, small, and medium enterprises; however, there is a need for policy intervention to ensure growth extends beyond assembly units and focuses on creating an ecosystem for component manufacturing and value-addition to move up the value chain.
India is set to become the largest connected nation, but this growth poses challenges of cybersecurity and data safety, according to Electronics and Information Technology Minister Rajeev Chandrasekhar.
Bank of Japan Governor Kazuo Ueda stated that underlying inflation in Japan remains below the bank's 2% target, leading to the decision to maintain the current approach to monetary policy, despite core consumer inflation staying above the target for the 16th consecutive month.
Tamil Nadu's economic growth has reached 8% in the post-COVID-19 years of 2021-22 and 2022-23, with the state's Gross State Domestic Product (GSDP) growing at constant prices, surpassing the national average.
The Bank of Japan will maintain its current monetary policy approach as underlying inflation remains below the 2% target, despite core consumer inflation staying above target for the 16th straight month in July, according to BOJ Governor Kazuo Ueda.
Economist Fred Harrison, who accurately predicted previous property market crashes, claims that house prices will continue to rise until 2026 before experiencing a significant decline. He follows the "18-year house price cycle theory" which suggests that a crash occurs 18 years after the previous one began.
Former finance minister Miftah Ismail reveals that the caretaker government in Pakistan must seek permission from the International Monetary Fund (IMF) before giving relief to consumers facing inflated electricity bills, and urges political leadership to come up with a strategy to collect taxes from the rich.
Foreign investors can play a crucial role in addressing Nigeria's housing deficit by bringing in capital, expertise, best practices, and sustainability, but attracting them requires a stable political and economic environment, improvement in the ease of doing business, and addressing the high cost of funds and land acquisition issues.
Prime Minister Narendra Modi will address the B20 Summit in Delhi, where 54 recommendations and 172 policy actions for G20 submission will be discussed.
The BRICS alliance is set to expand to include Saudi Arabia, the UAE, Argentina, Egypt, Iran, and Ethiopia, posing a significant threat to the US and other developed nations as these developing countries strengthen and gain control over a larger portion of the global economy.
Cleveland Federal Reserve Bank President Loretta Mester believes that beating inflation will likely require one more interest-rate hike in the U.S. and then pausing for a while, although she may reassess her previous view of rate cuts starting in late 2024, and she aims to set policy so that inflation reaches the Fed's 2% goal by the end of 2025 to prevent further economic harm.
Billionaire Ray Dalio sees India as a promising investment opportunity due to its recent successful moon landing and projected 7% growth rate, describing it as having the right potential and leadership for growth similar to China in the 1980s. Dalio believes Indian prime minister Narendra Modi has the capacity to influence the world order. On the other hand, Dalio has become less optimistic about China and suggests a massive debt restructuring is needed. Other notable figures, such as Tesla CEO Elon Musk and Goldman Sachs, also express confidence in India's economic prospects.
The Election Commission of Pakistan has invited the Jamaat-i-Islami and Muttahida Qaumi Movement-Pakistan to separate meetings to discuss the electoral roadmap for the upcoming general elections, covering areas such as delimitation of constituencies and the conduct of the elections.
Core inflation in the UK may continue to remain high and volatile due to the implementation of Brexit, discrepancies in wage growth, the direct effects of Brexit on prices, and fiscal policy challenges, which could result in higher and more unpredictable inflation compared to the US and euro area.
The 60th anniversary of Martin Luther King Jr.'s "I Have A Dream" speech is being commemorated with a march in Washington, D.C., organized by Martin Luther King III and the Drum Major Institute, in an effort to address eroded voting rights and growing threats against marginalized communities.
It may be too early for the European Central Bank to pause interest rate hikes now as an early stop in the fight against inflation could result in more pain for the economy later, according to Latvian policymaker Martins Kazaks.
The steep increase in public debt worldwide due to the Global Financial Crisis and the COVID-19 pandemic is likely irreversible, as countries struggle to reduce debt-to-GDP ratios due to factors such as population aging and increased public financing needs, according to economists at the International Monetary Fund and the University of California, Berkeley.
A research paper presented at the Kansas City Federal Reserve's annual central banking symposium concludes that the steep increase in public debt over the past 15 years due to the Global Financial Crisis and the COVID-19 pandemic is likely irreversible, with governments now needing to live with high debt burdens and implement measures such as spending limits and tax hikes.
The steep increase in public debt worldwide over the past decade is unlikely to be reversed due to factors such as population aging, rising interest rates, and political challenges, according to a research paper presented at the Kansas City Federal Reserve's annual central banking symposium. Governments will need to manage high debt levels through spending limits, potential tax increases, and improved banking regulations.
China's slowing economy may help Canada fight inflation, according to Jimmy Jean, chief economist at Desjardins Group.
Australia's population growth, driven by high levels of immigration, is leading to a housing crisis, infrastructure shortages, and environmental issues, raising concerns about the country's ability to sustain a quality way of life and achieve climate goals.
Despite U.S. trade shifting away from China, the country still relies on China-linked supply chains, leading to higher costs for consumers and uncertain benefits in terms of improved manufacturing efficiency, according to research presented at a Federal Reserve symposium.
Russia's Finance Minister, Anton Siluanov, has stated that the country's economy is expected to grow by 2.5% or more in 2023, with inflation predicted to be around 6%.
The recent incident of children being stranded on a cable car in Pakistan highlights the challenges of school accessibility in the country, with poor roads, poverty, and extreme weather preventing many students from attending classes, contributing to Pakistan's low school attendance rates, particularly for girls. Boosting education rates is crucial for economic sustainability and to address security concerns, but the lack of proper infrastructure hampers progress.
President of the European Central Bank, Christine Lagarde, stated that interest rates in the European Union will need to remain high to combat inflation, despite progress being made, emphasizing the challenges posed by disruptions in the global and European economies.
Federal Reserve Chair Jerome Powell stated that the strength of the U.S. economy may require additional interest rate increases to control inflation, while also acknowledging the uncertain nature of the economic outlook.
India's G20 presidency has shaped its global future and brought the country to the forefront of the international stage, with discussions at the NDTV G20 Conclave focusing on energy transition, clean growth, digital economy, and India's rising global influence.
Pakistan's caretaker Prime Minister, Anwaarul Haq Kakar, expressed confidence that the country will overcome its economic challenges, emphasizing the need to bring the undocumented economy into the tax net and invest in human resources, during an interaction with a delegation of students from Harvard. He also discussed Pakistan's role in the USSR-Afghan war, highlighted the importance of democracy and emphasized the desire to establish a collaborative partnership with the US.
Despite Bernie Sanders and his supporters touting the Nordic healthcare system as an example of socialism, a closer examination reveals that it incorporates both public and private elements, with significant private healthcare options available in countries like Sweden and Denmark. The presence of private healthcare firms and the choice of private insurance contradict the idea that these systems adhere strictly to the definition of socialism. Furthermore, Nordic politicians emphasize their market-oriented economic structures and the blend of public and private elements within their healthcare systems. The inefficiencies and long wait times in these systems have led to significant private sector growth, showcasing the limitations of government intervention in healthcare.
In the coming week, important economic data releases include India's Q1 GDP, fiscal deficit, and infrastructure sector output, as well as global GDP numbers from the US for Q2 and manufacturing PMI data from various countries. Additionally, there will be several IPOs and stock listings.
The Dow Jones finished the week in the red as markets rebounded, while Fed Chair Jerome Powell suggested another interest rate hike may be necessary; mortgage rates rose for the fifth straight week, cutting into homebuyers' purchasing power; initial unemployment claims dropped to 230,000; and existing-home sales fell in July but prices rose for the first time in five months.
China's economy is facing a number of challenges, including a property sector crisis, but experts believe it is unlikely to experience a "Lehman moment" like the US did in 2008 due to its state-owned financial system and government involvement in the economy. However, they do foresee a prolonged structural economic crisis.
President Joe Biden is accused of misleading Americans about unemployment data, but the U.S. Bureau of Labor Statistics explains that the numbers cited by Biden do not include those who are not actively looking for work.
The Panama Canal is experiencing lower water levels due to a lack of rainfall, leading to restrictions and potential disruptions in international shipping, highlighting the vulnerability of global supply chains to weather-related incidents.
Developed nations will need to invest $100-150 billion per year through multilateral development banks to support emerging economies in financing their climate transition, according to Mark Carney, UN special envoy for climate action and finance. Carney emphasized the importance of transition finance for challenging sectors and called for changes in the operational orientation of MDBs to prioritize climate funding.
India's fast growth can be attributed to affordable digital connectivity and the digital ID system, Aadhaar, that has been issued to a large portion of its population, according to the president of the World Economic Forum.
Long-run forecasting can be challenging, but by modeling the underlying economic or business process, looking at historical data, and forecasting with humility, business analysts can produce valuable long-term projections for better decision-making.
The minimum wage of RM1,500 will be maintained under the progressive wage system introduced by the Malaysian government, according to Human Resources Minister V Sivakumar, who emphasized that lowering the minimum wage would be regressive rather than progressive. The progressive wage system aims to gradually increase wages in line with economic growth and improve worker productivity. The implementation of the system is not mandatory for all private employers, allowing them to decide whether to adopt it or not. Additionally, the Ministry of Human Resources will consider the proposed drafting of the Salary Advertisement Act, which would require employers to post a salary scale for job advertisements, making the process more transparent.
The United States is experiencing a high number of job openings, but a shortage of workers, leading to a debate on whether immigration policies should be more open to address this gap.