Latest news with #GDP
CTV News
6 hours ago
- Business
- CTV News
CTV National News: Why experts are urging caution despite Canada's GDP growth
CTV National News: Why experts are urging caution despite Canada's GDP growth Canada's GDP grew by 2.2 per cent in the first quarter. Jeremie Charron on why experts say the good news is just the calm before the storm.
Reuters
7 hours ago
- Business
- Reuters
Moody's maintains 'Ca' rating on Ukraine as effects of war continue
May 30 (Reuters) - Credit ratings agency Moody's affirmed Ukraine's 'Ca' rating on Friday, citing the long-lasting impact of the war with Russia on its economy and finances, as well as uncertainties over peace negotiations with Moscow. "Growth prospects remain subdued as challenging security conditions, labour shortages and attacks on energy infrastructure continue," Moody's said, maintaining its outlook for Ukraine at stable. The ratings agency on its website, opens new tab defines 'Ca' rating obligations as "highly speculative and are likely in, or very near, default, with some prospect of recovery in principal and interest". On Friday, Ukraine's finance ministry said it would not be paying more than half a billion dollars due to holders of its GDP warrants, marking the first payment default since it created the instruments. Kyiv also resisted U.S. and Russian pressure to commit to attending another round of peace talks on June 2, saying it first needed to see Russian proposals. Ukraine's economy cratered after Russia's full-scale invasion in 2022, falling close to 30%. Although it staged modest growth in 2023 and 2024, its gross domestic product (GDP) remains below the pre-war level as it extensively restructures its debt. Moody's forecast Ukraine's GDP growth to slow to 2.5% in 2025 from 2.9% in 2024, adding that it expects economic growth to remain "subdued" in 2026 and 2027. Rival ratings agency Fitch last week affirmed Ukraine's long-term foreign currency sovereign credit rating at "Restricted Default", as the nation continues to navigate diplomatic tensions and a significant erosion of its finances.
Globe and Mail
12 hours ago
- Business
- Globe and Mail
U.S. consumer spending slows in April, inflation rises moderately
U.S. consumer spending increased marginally in April, with households opting to boost savings amid mounting economic uncertainty because of a constantly changing tariff landscape. The report from the Commerce Department on Friday suggested the economy struggled to rebound early in the second quarter after contracting in the January-March quarter for the first time in three years. Gross domestic product could, however, get a lift from a sharp contraction in the goods trade deficit last month as the front-running of imports to beat tariffs faded. Inflation was muted in April, with a measure of underlying price pressures posting its smallest annual increase in four years. A U.S. trade court on Wednesday blocked most of President Donald Trump's import duties from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday, adding another layer of uncertainty over the economy's outlook. 'Consumers appeared to be saving for a rainy day last month as the Liberation Day tariff shock shook consumer confidence,' said Scott Anderson, chief U.S. economist at BMO Capital Markets. Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.2 per cent last month after an unrevised 0.7 per cent jump in March, the Commerce Department's Bureau of Economic Analysis said. That was in line with economists' expectations. Spending was supported by outlays on services, mostly housing and utilities, health care as well as restaurants, hotels and motel stays. But goods spending softened amid cutbacks on purchases of motor vehicles and parts, clothing and footwear as well as recreational goods and vehicles. Pre-emptive buying of goods ahead of Trump's sweeping import tariffs helped to push spending higher in the prior month. Most of the tariffs have been implemented though higher duties on goods have been delayed until July. Duties on Chinese imports have been slashed to 30 per cent from 145 per cent until mid-August. Economists have argued that Trump's aggressive trade policy will sharply slow economic growth this year and boost inflation, concerns echoed by Federal Reserve officials. Minutes of the U.S. central bank's May 6-7 meeting published on Wednesday noted 'participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases.' The U.S. central bank has kept its benchmark overnight interest rate in the 4.25 per cent to 4.50 per cent range since December. The economy contracted at a 0.2 per cent annualized rate in the first quarter after growing at a 2.4 per cent pace in the October-December quarter, largely depressed by a flood of imports. With most of the tariffs in place, imports are collapsing, helping to compress the goods trade deficit by 46 per cent to $87.6 billion in April, a separate report from the Commerce Department's Census Bureau showed. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. U.S. stocks opened lower. The dollar rose against a basket of currencies. U.S. Treasury yields edged higher. But given the on-again and off-again nature of the tariffs, the front-running of imports is probably not over, and neither is the gloom over the economy likely to lift soon, evident in the deterioration in consumer sentiment. That is prompting consumers to build savings. The saving rate jumped to a one-year high of 4.9 per cent from 4.3 per cent in March. Inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1 per cent last month after being unchanged in March, the BEA said. In the 12 months through April, PCE prices increased 2.1 per cent after advancing 2.3 per cent in March. Stripping out the volatile food and energy components, the PCE price index gained 0.1 per cent last month following an upwardly revised 0.1 per cent gain in March. The so-called core PCE inflation was previously reported to have been unchanged in March. In the 12 months through April, core inflation rose 2.5 per cent. That was the smallest advance since March 2021 and followed a 2.7 per cent increase in March. The Fed tracks the PCE price measures for its 2 per cent inflation target. Economists expect inflation to accelerate this year as tariffs raise goods prices. Consumers' one-year inflation expectations have soared. The Fed minutes on Wednesday showed some policymakers assessed that the surge in short-term inflation expectations 'could make firms more willing to raise prices.' They also saw a risk that longer-term inflation expectations 'could drift upward, which could put additional upward pressure on inflation.'
Free Malaysia Today
14 hours ago
- Business
- Free Malaysia Today
India records more than 6% annual growth
India's national statistics office said March-quarter growth was helped by a surging construction sector. (AP pic) MUMBAI : India's economy grew by 6.5% in the fiscal year that ended in March, official data showed today, among the world's top performers but still sluggish compared with its recent track record. The rise in gross domestic product (GDP) was well below the 9.2% recorded in the previous financial year. The world's most populous nation grappled with a weaker manufacturing sector, tight monetary policy and muted urban consumer sentiment for most of the past year. While the economy has rebounded over the past two quarters, helped in part by strong agricultural output, US President Donald Trump's tariff blitz poses risks to a sustained recovery. New Delhi, which was slapped with 26% so-called reciprocal tariffs, is currently negotiating a trade deal with Washington that it hopes will spare it the worst of Trump's trade push. Analysts believe the annual growth figures, along with cooling inflation data, will convince India's central bank to continue its interest rate easing cycle at its review meeting next week. The GDP figures released today were a little above analyst expectations of 6.3% but matched the government's own projections of 6.5% year-on-year growth. The data for the January-March quarter was brighter, with GDP growing 7.4% year-on-year – the fastest this fiscal year and beating analyst estimates of 6.8% growth. The national statistics office said in a media release that growth in the March quarter was helped by a surging construction sector. Nearing Japan AdChoices ADVERTISING While India is still the fastest-growing major economy, the 2024-2025 fiscal year growth figures remain below the 8% pace that experts say New Delhi needs to create enough well-paying jobs and generate economic prosperity. The slowdown in economic activity over the past year pushed Prime Minister Narendra Modi's government into delivering US$12 billion in income tax cuts this year, a move aimed at putting more money in the hands of millions of consumers. The Reserve Bank of India also cut interest rates in February for the first time in nearly five years and delivered another reduction in April. More recently, public debate over the country's economic ascent was triggered after a government official claimed India had surpassed Japan to become the world's fourth-largest economy. Projections by the International Monetary Fund, however, indicate that the switch will not happen until the end of this year. The claim nevertheless prompted swift self-praise from bosses of Indian companies and ruling party lawmakers. Critics on social media responded by noting that the milestone, whenever it happened, would be largely symbolic because India's current per capita GDP is still a fraction of Japan's. Experts also warned that the timeline for India beating out Japan could be delayed by fluctuations in exchange rates. 'Our forecasts suggest that India will overtake Japan by the middle of 2026,' Shilan Shah of Capital Economics said in a note this week. 'But the big picture is that India was always going to overtake Japan – and also Germany – given its positive demographics and scope for continued productivity gains,' Shah said.
Argaam
14 hours ago
- Business
- Argaam
Digital economy accounts for 15.6% of Saudi GDP in 2023: GASTAT
The digital economy accounted for 15.6% of Saudi Arabia's GDP in 2023, marking a 1.6% increase compared to 2022, according to the Digital Economy Statistics Bulletin 2023 issued recently by the General Authority for Statistics (GASTAT). As for the structure of the digital economy, the core level, consisting of activities that produce information and communication technology (ICT) goods and services, contributed 2.6% to GDP. The narrow level, which covers establishments relying on digital inputs, contributed 2.3%. The broad level, which includes establishments that significantly enhance their products and services through digital inputs, accounted for 10.7% of GDP. This survey adheres to international standards set by the UN Conference on Trade and Development (UNCTAD) in its Handbook on Measuring Digital Trade, ensuring the international comparability of Saudi Arabia's digital economy indicators. Imports of ICT goods recorded a notable growth, reaching SAR 54.9 billion in 2023, reflecting a 20% growth rate. Meanwhile, exports and re-exports of these goods grew by 76%, reaching SAR 11.8 billion. According to the bulletin, 71.6% of establishments connected to the internet used smart devices or systems, with the most notable being alarm systems, smart meters, smart lighting, and smart surveillance cameras. Regarding the sector's financial performance, operating revenues for the ICT sector in 2023 totaled approximately SAR 236.4 billion, while operating expenses reached SAR 115.4 billion. Employee compensation in the sector amounted to SAR 27.5 billion. Operating Revenues of ICT Sector in 2023 Details Value (SAR bln) Operating Revenues 236.4 Operating Expenses 115.5 Employee Compensation 27.5 The number of active commercial registrations for e-commerce reached about 37,500 in 2023, an increase of 24% compared to 2022. Commercial registrations for software publishing rose from 3,113 in 2022 to 4,009 in 2023. Commercial registrations for cloud computing services providers also saw a 41% increase, reaching 1,759.
