Latest news with #domesticconsumption
South China Morning Post
13-08-2025
- Business
- South China Morning Post
Indonesia's economic growth surprises market as questions arise over data
Indonesia 's better-than-expected economic growth for the second quarter has raised eyebrows among some academics, who have questioned if the headline number reflects what they perceive to be a slowdown on the ground. Gross domestic product in Southeast Asia's biggest economy grew by 5.12 per cent in the April-June period, a rise from 4.87 per cent in the first quarter, according to Statistics Indonesia (BPS), the country's statistics agency, which released the data on August 5. BPS said the growth was sustained by domestic consumption, which increased by 4.97 per cent year on year, as well as by manufacturing investment, which grew by 6.99 per cent, the highest rise since the second quarter of 2021. The manufacturing industry grew by 5.68 per cent year on year, according to BPS. Household spending contributed to 54.25 per cent of Indonesia's GDP in the second quarter. The announced figures were higher than market forecasts of around 4.8 per cent, as initially polled by Reuters. Jakarta-based think tank Centre of Economic and Law Studies (Celios) said the official economic statistics were 'odd' and it had filed a request to the UN Statistics Division (UNSD) and Statistical Commission on August 8 to 'launch a technical diagnostic review of Indonesia's GDP calculation framework, with particular attention to anomalies in Q2 2025 reporting'.
Times of Oman
03-08-2025
- Business
- Times of Oman
India's domestic demand shields economy from tariff impact: BoB Chief Economist
New Delhi: India's reliance on domestic consumption rather than exports is a key strength in navigating the recently imposed reciprocal tariff, said Madan Sabnavis, Chief Economist at Bank of Baroda. Speaking during a webinar on the impact of Tariffs on India, Sabnavis highlighted that India's non-export-oriented nature makes its economy more resilient to external shocks arising due to the imposition of tariffs. "Since we are not an export-oriented economy, it is becoming advantageous for us because we are more dependent on domestic consumption," said the Bank of Baroda Chief Economist. For context, on Wednesday, US President Donald Trump announced the imposition of 25 per cent tariffs on Indian goods plus an unspecified penalty, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. On April 2, 2025, President Trump signed an executive order for reciprocal tariffs on various trade partners, imposing varied tariffs in the range of 10-50 per cent. As per the BoB, under the base case scenario, a 10 per cent decline in exports could lower GDP by about 0.2 per cent. However, Bank of Baroda's GDP growth forecast of 6.4-6.6 per cent already factors in this risk, which was released earlier. India's export-to-GDP ratio stands at 21 per cent, with services making up 47 per cent of total exports, which makes overall exports relatively insulated, the presentation at the webinar showed. According to the BoB, the Consumer Price Index (CPI) is not expected to rise in the near term, though about 10 per cent of the Wholesale Price Index (WPI) basket could be affected by imported inflation. Some industries may face higher input costs, which could impact profit margins, the bank's presentation added. The BoB assumes that the current account deficit (CAD) is expected to stay below 1 per cent of GDP. Talking about the trade figures, India's export reliance on the USA is high at 19.8 per cent. India's import reliance is lower at 6.3 per cent. The BoB added that in terms of exposure of the export basket, industries such as electronic goods, marine products, readymade garments, gems and jewellery, chemicals, poultry, etc, might face a dent. In terms of tariff rate, clarity is awaited regarding the exemption, which might again be fruitful, the chief economist of BoB added. He further supported that India's significant reliance on service exports also cushions the economy in this volatile tariff environment imposed especially on goods.
Wall Street Journal
28-05-2025
- Business
- Wall Street Journal
Bank of Mexico Cuts Economic Growth Forecasts
MEXICO CITY–The Bank of Mexico lowered its economic growth estimates for this year and next, citing uncertainty about the impact of U.S. import tariffs and weakness in domestic consumption and investment. In its quarterly report, the central bank said it expects Mexico's gross domestic product to grow 0.1% this year, down from it's previous estimate of 0.6%. The forecast ranges from a contraction of 0.5% to an expansion of 0.7%. For 2026, the bank cut its growth forecast to 0.9% from 1.8% previously.
Bloomberg
28-05-2025
- Business
- Bloomberg
China Tech Ambitions Won't Hurt Consumption Pivot, Keyu Jin Says
China can boost production of high-end technological goods without undermining its push to lift domestic consumption, economist Keyu Jin said. The scholar argued that the Asian nation can advance both goals 'in parallel' in response to a question about Beijing's potential adoption of a new industrial blueprint. Talks about that proposal, reported by Bloomberg News this week, signal Chinese policymakers intend to keep a firm grip on manufacturing as President Donald Trump looks to bring more factories back to the US.
Bloomberg
23-05-2025
- Business
- Bloomberg
Dollar Store Seeks To Revive Malaysia's IPO Market
Homegrown brand Eco-Shop has become Malaysia's biggest IPO this year after raising more than $220 million. It's a sign that in light of US tariff threats, domestic consumption may be Malaysia's solution for sustained economic growth. (Source: Bloomberg)
