Economics & Market Updates

Economics & Market Updates

blog-usa

US: FOMC MAINTAINS STATUS QUO ON FUTURE RATE EXPECTATIONS

In line with expectations, the Federal Open Market Committee (FOMC) raised the federal funds rate by 25 basis points to between 0.75% and 1% at its meeting held on 15th March 2017. The rate hike was warranted by strengthening of economic activity,Read More

blog-eurozone

Euro Zone: Upcoming Elections in the Netherlands, France and Germany Pose Downside Risks to the Fragile Recovery

The recovery in the Euro Zone (EZ) economy is continuing at a moderate pace and we expect the economy to grow at 1.7% in 2017, similar to the growth seen in 2016. Consumption demand remains the mainstay of the economy. Read More

blog-india

India: Another Rate Cut Expected With Easing Inflation

Consumer Price Index (CPI) inflation eased further in October and came in at 4.2% y-o-y compared to 4.4% y-o-y in September 2016 – the lowest rate in 14 months. The decline was driven largely by softening of food prices, especially pulses and products, and vegetables.Read More

blog-singapore

Singapore: Consumer Prices Decline For The 23rd Straight Month

Singapore’s Consumer Price Inflation fell 0.2% y-o-y in September 2016 compared to a decline of 0.3% y-o-y in August 2016. The latest decline marked a drop in prices for the 23rd consecutive month and the longest stretch of negative inflation since 1977.Read More

blog-indonesia

Indonesia: Strong Household Expenditure Drives GDP Growth Rate in 2Q2016

The Indonesian economy grew 5.18% y-o-y in 2Q2016 compared to an increase of 4.91% in the first quarter of 2016. This was the fastest pace of growth recorded since Q1 2014, and was largely driven by household expenditure and investment. Household expenditure, which grew 5.04% y-o-y compared to 4.94% y-o-y in 1Q, was partially supported by the Ramadan and Eid-ul-Fitr festivities in June. Gross fixed capital formation came in at 5.06% y-o-y in 2Q compared to an increase of 5.57% y-o-y in the previous quarter, having benefited from the increased infrastructure spending by the government.Read More

blog-singapore

SINGAPORE: WEAKER TRADE NUMBERS REFLECT DOWNSIDE RISKS

Singapore’s exports declined in July 2016 on account of weak external demand as the global economic situation remains fragile. At the same time, weaker domestic demand led to a decline in imports. Exports in Singapore declined for a 16th straight month while imports continued to trend lower for the fifth consecutive month. The trade surplus came in at SGD 5.7 billion in July 2016 compared to SGD 5.3 billion in June 2016 on the back of a steeper decline in imports than exports.Read More

blog-malaysia

Malaysia: Manufacturing and Services Drive GDP; Production Grows on the Back of Manufacturing and Mining Activity

Malaysia’s GDP grew 4% y-o-y in 2Q2016 compared to a 4.2% y-o-y rise in 1Q2016 – slowing for the sixth straight quarter. Final consumption contributed 4.1 percentage point (ppt) to GDP largely driven by private consumption while fixed capital formation contributed 1.7 ppt. Change in inventories and net exports detracted 1.2 ppt and 0.7 ppt respectively from GDP. Net exports detracted from overall GDP as imports grew at a faster pace than exports.Read More

blog-eurozone

EUROZONE: WEAK INDUSTRIAL PRODUCTION POSES RISK TO GDP GROWTH

Industrial production in Eurozone continues to struggle to gain momentum and came in weaker than expected in June which poses a risk to our GDP outlook of 1.3% for 2016 (lowered from 1.6% after the Brexit vote). While the weakness in factory output was seen ahead of the Brexit vote, the effect of UK’s exit is clearly felt in the aftermath, and it is expected to come in weaker going forward.Read More

blog-india

India: Reserve Bank Of India’s Inflation Targeting Regime Fails To Curb Inflation

Consumer Price Index (CPI) inflation came in at 6.1% y-o-y in July 2016 compared to a 5.8% y-o-y rise in June 2016– the highest rate since August 2014. Inflation continued to be driven mainly by a sharp rise in food prices, especially vegetables and pulses. Inflation has moved up since reaching a low of 4.9% y-o-y in March 2016 and has averaged 5.9% over the 3-month period ended July 2016.Read More

blog-usa

United States: Job Gains in July Surpass Market Expectations

Non-farm payroll employment came in higher than expected with 255,000 jobs being added in July 2016 compared to an upward revision of 292,000 jobs being added in June 2016. The payroll number for June 2016 was revised up from 287,000 while the number for May 2016 was revised higher from 11,000 to 24,000. The first half of 2016 saw an average addition of 174,500 jobs to the US economy.Read More

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