Global growth projections

The blow is hitting hardest in countries where the pandemic has been the most severe and where there is heavy reliance on global trade, tourism, commodity exports and external financing, it said. While the magnitude of the disruption will vary from region to region, all EMDEs have vulnerabilities that are magnified by external shocks. Moreover, interruptions in schooling and primary healthcare access are likely to have lasting impacts on human capital development, the bank said. "This is a deeply sobering outlook, with the crisis likely to leave long-lasting scars and pose major global challenges," World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu said. "Our first order of business is to address the global health and economic emergency. Beyond that, the global community must unite to find ways to rebuild as robust a recovery as possible to prevent more people from falling into poverty and unemployment," he said. World Bank Prospects … [Read more...] about Global economy to plunge into worst recession since WW-II: World Bank

Mark Ren, chief operating officer of Tencent Holdings Ltd, said AI is poised to bring new growth momentum, present new game-plays such as esports, and foster a new generation of people who are "digital natives" that are ready to devote themselves to the industrial internet. … [Read more...] about Experts: AI to unleash growth across sectors

coronavirus pandemic worsened, with export powerhouses Japan and South Korea suffering the sharpest declines in business activity in more than a decade.A series of manufacturing surveys released on Monday suggest any rebound in businesses will be some time off, even though China's factory activity unexpectedly returned to growth in May.China's Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) hit 50.7 last month, marking the highest reading since January as easing of lockdowns allowed companies to get back to work and clear outstanding orders.But with many of China's trading partners still restricted, its new export orders remained in contraction, the private business survey showed on Monday. China's official PMI survey on Sunday showed the recovery in the world's second-largest economy intact but fragile.Japan's factory activity shrank at the fastest pace since 2009 in May, a separate private sector survey showed while South Korea also saw manufacturing slump at the … [Read more...] about Global Economy: Asia’s factory pain worsens as China’s recovery fails to lift demand

The Bank of England has unveiled another big stimulus for the UK economy as it tries to limit the scale of the coronavirus recession, which has already resulted in 18 years of growth wiped out in a matter of just two months. In a statement Thursday, the bank's policy making panel said it was increasing its government bond-buying program by a further 100 billion pounds ($125 billion) despite signs that the second-quarter fall in economic output will be less severe than it had thought last month. The bank warned then that the UK economy could shrink by 25% between April and June, from the previous three-month period. There are two motivations behind the bank's purchase of government bonds from investors, such as pension funds and other investors to keep a lid on interest rates for such things as home mortgages and loans, and to keep money flowing through the financial system in a time of acute stress. The bank's monetary policy committee opted against cutting its main interest rate, … [Read more...] about Bank of England unveils another big stimulus for UK economy

NEW DELHI: Why are equity markets rallying globally despite grim economic conditions and weak earnings projections? That's one question haunting small investors and market veterans alike over the past few weeks. Uday Kotak, India’s richest banker and head of Kotak Mahindra Bank, has a simple answer: it's the glut of money from central banks, and markets' habit of discounting the immediate future! “First, there has been a significant monetary expansion by central banks worldwide. Second, investors and analysts have already discounted earnings downside for FY21 and are looking at earnings of FY22 and FY23,” Kotak said. Hopeful buying by retail and institutional investors has lifted the 30-share index Sensex by 41 per cent from March lows while BSE Smallcap index has surged 45 per cent and Nifty Midcap index has climbed 39 per cent. Kotak advised the government and industry to take a cue from stock market investors and not worry too much about the current fiscal … [Read more...] about Govt & industry should take cue from stock market and not worry too much, says Uday Kotak