Tagged: recovery

IMF President: China’s economic recovery is strong

At present, China’s economic recovery is bringing positive spillover effects to the rest of the world through trade channels and China’s demand for raw materials, consumer goods and manufactured goods.

IMF President: China's economic recovery is strong

Georgieva, President of the International Monetary Fund, said recently that China’s economy is “recovering strongly” and has brought positive spillover effects to the rest of the world. She believes that all countries should seize the opportunity to respond to risks of COVID-19 and climate change, increase green investment and multilateral cooperation, and promote a green and inclusive recovery of the global economy. China can play an important role in this process.

 

In an exclusive video interview with Xinhua News Agency on the 13th, Georgieva said that in the latest report released by the IMF, China’s economic growth forecast for this year has been raised to 8.4% from the previous 8.1%. At present, China’s economic recovery is bringing positive spillover effects to the rest of the world through trade channels and China’s demand for raw materials, consumer goods and manufactured goods. At the same time, China plays an important role in revitalizing Global trade, supporting the economic recovery of developing countries and promoting the transition to a “new climate economy”.

 

She said that China’s commitment to achieve “carbon neutrality” by 2060 is an important part of the international community’s mobilization to deal with the disastrous impact of climate change. She also praised the people’s Bank of China for attaching importance to the quality of green investment, focusing on the financial stability risks related to climate, and providing good guidance for the establishment of green financial standards in a very systematic way. The IMF will hold a high-level seminar on green finance and climate policy with the people’s Bank of China from April 15 to 16 to share relevant policy experiences and practices.

 

She also pointed out that at present, China’s economic growth is still more driven by public investment, and expects China to improve and expand its social security network to enhance domestic consumption and continue to promote economic rebalancing.

 

Speaking of the message to be conveyed to the upcoming Boao Forum for Asia annual meeting, Georgieva said that there is a Chinese saying that “crisis is organic in crisis”. “We are facing economic opportunities that will lead us into a green, digital and inclusive future. It is our best way to cherish the memory of those who passed away in the COVID-19 by taking the crisis as an opportunity for positive reform, promoting greater integration of the world and improving people’s lives through cooperation. She said.

 

Georgi Ieva pointed out that COVID-19 once again shows that the global economy is so interdependent and highlights the value of multilateral cooperation. She called for comprehensive policy support for countries with lagging economic recovery to avoid “dangerous differentiation” in the global economy. At present, the top priority for policy makers is to speed up vaccination around the world, “one shot in the arm is the fastest way for global economic recovery” and bring great value to all countries, she said. The IMF predicts that the faster popularization of vaccines and the end of the new crown crisis can increase global GDP by nearly $9 trillion by 2025.

 

Georgieva stressed that the risks posed by climate change to macroeconomic and financial stability are increasing day by day. When the global economy is striving to get out of the most serious recession since the end of World War II, it is particularly important to seize the opportunity to expand green investment and promote economic transformation, and the efforts made to cope with climate change can bring economic growth and employment.

 

Georgieva said that climate change may bring potential physical risks through natural disasters, and may also bring transformation impact to some industries and enterprises, causing losses to financial institutions. The IMF is strengthening the assessment of climate related financial stability risks, providing policy recommendations and capacity-building support for member countries to deal with climate change, and considering the stress test of the financial system to resist climate risks.

Domestic demand of machine tools in March in Japan

According to the data released by the Japan work machinery industry association on April 12, Japan’s domestic machine tool orders in March were 40.6 billion yen, up 18.7% year-on-year. Since November 2018, there has been a year-on-year growth in two years and three months. Due to the active semiconductor market and the recovery of automobile production, the demand for production equipment is increasing, and the prosperity of Japan’s domestic manufacturing industry is recovering.

Domestic demand of machine tools in March in Japan

Together with export orders, Japan’s total machine tool orders in March increased by 65% to 127.8 billion yen, achieving a year-on-year growth for five consecutive months and reaching the highest level since March 2019. Among them, export orders reached 87.1 billion yen, double the year-on-year growth.

 

In the fiscal year 2020 to the end of March, Japan’s total machine tool orders decreased by 10.1% over the previous fiscal year to 988.4 billion yen. Affected by COVID-19, it fell below 1 trillion yen after 10 years. However, driven by the early recovery of China’s economy, foreign demand orders reached 662.2 billion yen, an increase of 1.4%.

Chip factory production is close to full recovery

A spokesman for Samsung Electronics (208.25, 0.00, 0.00%) said on Tuesday that as of last week, output at its Austin, Texas, chip plant was close to normal.

 

The plant has been shut down for more than a month due to the cold wave in the United States on February 16, which is the first time in Samsung’s history that its production line has been shut down for more than a month, with an estimated loss of 400 billion won (about $355 million).

 

Samsung Austin factory mainly produces it equipment semiconductor products and communication semiconductor products based on 14-65nm process, such as mobile AP, high-performance solid state hard disk (SSD) controller, display driver IC, etc.

South Korea’s export investment recovery

South Korea’s Ministry of planning and Finance released its green book on recent economic trends on Friday saying that South Korea’s export and investment have recovered in the near future, employment population has declined by a narrow margin, affected by the epidemic, and domestic demand has continued to decline.

 

The South Korean Government referred to real economic uncertainty for eight months from July to February, but there was no wording in the green paper. The Ministry of Finance said at a press conference that the recovery momentum of the real economy has continued under the impetus of export and investment recovery in the near future, domestic demand has declined from February, and the real economic indicators are unlikely to continue to deteriorate in the short term.

 

The domestic card reading volume in February increased by 8.6% year-on-year, and the negative value was positive in 3 months. Department store sales increased 39.5 percent, the biggest increase since 2005. The sales of discount stores increased by 24.2%, the largest increase since february2015. Catering, accommodation, arts and art leisure and sports industries still maintain a double-digit decline, and there are still deviations in various fields of domestic demand.

 

In addition, the network sales increased by 9.5%, a decrease from 18.1% in January; domestic sales of passenger vehicles in South Korea increased by 28.4%, which remained increasing after January; the consumer confidence index (CSI) was 97.4, higher than 95.4 in January; Chinese tourists visited South Korea decreased 89.4% on month basis; in February, employment population decreased by 473000 people year on year, falling for 12 consecutive months since February; exports increased by 9.5% year-on-year in February, with daily average daily average of 12 months The export volume was US $2.3 billion, an increase of 26.4 per cent year on year.