Economics
Developing Asia to Grow 0.1% in 2020, Growth in the PRC is forecast at 1.8%
Developing Asia is expected to grow by 0.1% this year, the slowest rate since 1961 while Southeast Asia is expected to contract by 2.7%
Developing Asia is expected to grow by 0.1% this year, the slowest rate since 1961, the Asian Development Bank said in a report on Thursday.
Thailand’s economy is expected to shrink by 6.5%, compared to 4.8% in the previous ADB assessment.
Developing Asia will barely grow in 2020 as containment measures to address the coronavirus disease (COVID-19) pandemic hamper economic activity and weaken external demand, according to a new set of forecasts from the Asian Development Bank (ADB).
In a regular supplement to its annual flagship economic publication, the Asian Development Outlook (ADO) 2020 released in April, ADB forecasts growth of 0.1% for the region in 2020.
This is down from the 2.2% forecast in April and would be the slowest growth for the region since 1961. Growth in 2021 is expected to rise to 6.2%, as forecast in April.
Gross domestic product (GDP) levels in 2021 will remain below what had been envisioned and below pre-crisis trends.
Risks to the outlook remain on the downside. The COVID-19 pandemic may see multiple waves of outbreaks in the coming period and sovereign debt and financial crises cannot be ruled out. There is also the risk of renewed escalation in trade tensions between the United States and the People’s Republic of China (PRC).
East Asia is forecast to grow 1.3% in 2020—the only subregion to experience growth this year—while growth in 2021 will recover to 6.8%.
Growth in the PRC is forecast at 1.8% this year and 7.4% in 2021, compared to the April estimates of 2.3% and 7.3%, respectively.
Hit hard by COVID-19, South Asia is forecast to contract by 3.0% in 2020, compared to 4.1% growth predicted in April. Growth prospects for 2021 are revised down to 4.9% from 6.0%. India’s economy is forecast to contract by 4.0% in fiscal year (FY) 2020, ending on 31 March 2021, before growing 5.0% in FY2021.
Southeast Asia is expected to contract by 2.7%
Economic activity in Southeast Asia is expected to contract by 2.7% this year before growing by 5.2% in 2021
Contractions are forecast in key economies as containment measures affect domestic consumption and investment, including Indonesia (-1.0%), the Philippines (-3.8%), and Thailand (-6.5%). Viet Nam is forecast to grow 4.1% in 2020. While that is 0.7 percentage points lower than ADB’s April estimates, it is the fastest growth expected in Southeast Asia.
“Economies in Asia and the Pacific will continue to feel the blow of the COVID-19 pandemic this year even as lockdowns are slowly eased and select economic activities restart in a ‘new normal’ scenario,” said ADB Chief Economist Yasuyuki Sawada.
“While we see a higher growth outlook for the region in 2021, this is mainly due to weak numbers this year, and this will not be a V-shaped recovery. Governments should undertake policy measures to reduce the negative impact of COVID-19 and ensure that no further waves of outbreaks occur.”
Hit hard by COVID-19, South Asia is forecast to contract by 3.0% in 2020, compared to 4.1% growth predicted in April. Growth prospects for 2021 are revised down to 4.9% from 6.0%. India’s economy is forecast to contract by 4.0% in fiscal year (FY) 2020, ending on 31 March 2021, before growing 5.0% in FY2021.
Business
China and the UK Resume Economic and Financial Discussions After Six-Year Break
China and Britain resumed economic talks after six years, aiming to improve relations. Chancellor Reeves seeks cooperation but raises concerns over Russia’s support and Hong Kong’s civil liberties.
Resumption of Talks
Taipei, Taiwan (AP) — China and the United Kingdom have reignited economic discussions after a six-year pause, spurred by British Treasury Chief Rachel Reeves’ recent visit to Beijing. The Labour government aims to mend strained relations with China, the world’s second-largest economy. Reeves met with Chinese leaders and underscored the necessity for a "stable, pragmatic" partnership, emphasizing collaboration on mutual interests while maintaining transparency in disagreements.
Economic Collaboration
During her talks, Reeves sought to address key issues such as reducing economic support to Russia and advocating for basic rights in Hong Kong. Both nations signed agreements expected to infuse £600 million ($732 million) into the U.K. economy over the next five years. These agreements target crucial sectors including finance, with Reeves emphasizing that this renewed engagement may generate up to £1 billion for the U.K.
National Security Concerns
While seeking better ties, there are mounting concerns regarding national security and human rights abuses in China. Critics from the opposition have questioned the balance between economic opportunities and safeguarding Britain’s interests. Reeves acknowledged the importance of national security but highlighted the need for pragmatic relations with global partners, stating that ignoring China is not a viable option for the U.K.’s economic future.
Source : China and the UK restart economic and financial talks after a 6-year hiatus
Business
China Focuses on Finance and Energy Industries in Anti-Corruption Initiative – Thailand Business News
China’s anti-corruption conference emphasized intensified efforts in finance and energy sectors, aiming for comprehensive measures and accountability to restore public trust and foster a more equitable business environment.
China’s Anti-Corruption Initiative
China recently concluded a three-day anti-corruption conference, emphasizing its commitment to combat corruption across various sectors. The government underscored the importance of implementing comprehensive measures and ensuring accountability to safeguard integrity. This initiative addresses ongoing concerns regarding the detrimental effects of corruption on governance and public trust, aiming to promote transparency throughout the nation.
Targeting Key Sectors
In particular, China is intensifying its anti-corruption efforts within the finance and energy sectors, aligning with President Xi Jinping’s initiative for enhanced integrity. By concentrating on these areas, the government seeks to eliminate corrupt practices that threaten economic stability and undermine public confidence. Increased scrutiny in the financial sector has led to tougher regulations and high-profile dismissals of corrupt officials.
Commitment to Reform
China’s firm stance against corruption represents its dedication to fostering a fair business environment. As reforms unfold in critical sectors, the government aims to stimulate sustainable growth and restore public trust in its institutions. This approach marks a significant shift toward accountability in one of the world’s largest economies.
Source : China Targets Finance and Energy Sectors in Anti-Corruption Campaign – Thailand Business News
Business
Exploring New Ventures and Opportunities in Shanghai at NEPCON China 2025
NEPCON China 2025, held April 22-24 in Shanghai, is the premier B2B electronics assembly event, featuring exhibitions, conferences, and innovative technologies in emerging fields like AI and robotics.
NEPCON China 2025: A Premier Electronics Assembly Event
NEPCON China is the most significant B2B event in the electronics assembly sector, scheduled for April 22-24, 2025, at the Shanghai World Expo Exhibition & Convention Center. This leading event unites top industry brands and innovative companies, focusing on advanced IC packaging while integrating essential new resources within key technology areas.
The event features various interactive sessions such as conferences, competitions, and award programs, creating an exceptional platform for business networking. Attendees will gain insights into emerging fields like AI and robotics, with more than 500 exhibitors showcasing cutting-edge technologies, including SMT, testing equipment, and smart factory solutions.
Highlighting industry-specific zones and the NEPCON ∞ SPACE smart car disassembly area, NEPCON China 2025 promises to deliver the latest advancements while facilitating exclusive matchmaking opportunities with international buyers. For more information, visit www.nepconchina.com.
Source : New Business, New Opportunities in Shanghai at NEPCON China 2025
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