Monday, April 23 2018 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 10 hours 35 min ago
In the recently concluded 19th Party’s National Congress, the authorities have come up with a two-stage development plan. Using traditional Cobb-Douglas production function to gauge China’s potential GDP, we found China’s per capita GDP can increase to USD 21,000 (constant price of today) by 2035, in line with the authorities’ target of achieving “social modernization”.
Middle East continues to be at the heart of geopolitical tensions. The dispute over Jerusalem has intensified once again after the U.S. decided to move its embassy to Jerusalem. Protests erupted in Iran against the regime amid of unfulfilled promises. North Korea faced new sanctions, but some rapprochement between North and South Korea was observed.
IP grew by 7.0% yoy in November (cal. adj.) in line with expectations. After growing 10% in 3Q, yearly IP growth rate in October-November moderated to 7.2%. Our monthly GDP indicator nowcasts 6.8% yoy in December, implying a whole year growth rate slightly above 7% in 2017.
I understand that it is too late for the gifts to arrive on time for the 6th, but not all of them are needed tomorrow. I would like to ask you for a little help so that the global economic scenario of 2018 can end up looking like what we are hoping for: high levels of well-synchronised growth among the main geographical areas of the world.
Weekly economic update focusing on the major economic indicators to be released the week of January 8, 2018
2017 has been a year of ups and downs for remittances: from January to November there were 3 months with falls and 8 with increases. This is partly due to Mexican immigrants' fear of possible deportation or restrictions on remittances and changes in US trade (NAFTA) and tax policies since Trump’s election victory.
Consumer prices increased by 0.69% (mom) in December 2017, higher than median market expectation and BBVA-GB forecast (both 0.5%). We expect the headline to ease towards slightly below 10% by the end of 1Q and stay close to these levels until 4Q before falling to around 9% at the end of the year.
Our China Vulnerability Sentiment Index (CVSI) ended 2017 on a high note, extending previous gains, underpinned by the shift in policy focus towards quality of growth, PBOC’s prudent monetary policy stance, a stable yuan and ongoing efforts to curb risks to financial stability emanating from housing, SOE and the shadow banking sector.
For a further year, geopolitical events have continued to occupy the lead stories on the world’s traditional and digital media. We shouldn’t be surprised by this, if we accept that global geopolitics is in a state of transition and that the spaces left by certain actors are being rapidly filled by others.
The new year will probably start much as the old one ends, with the markets in positive mood. Risk appetite has been the dominant note for much of the year, except for a few brief bouts of volatility generated by political events and geopolitical tensions.
The year 2017 started with plenty of uncertainty for the global economy. President Trump had just been elected, the emerging economies were not doing particularly well and Europe was facing a difficult electoral cycle, with the memory of the Brexit referendum still fresh.