After a major decline in economic growth, further indicators of weakness in the U.S. economy are coming from various studies. The Chicago Purchasing Managers Index (PMI) fell to 50.4 in April, indicating that activity just barely expanded. That was far above the expectation that the index would almost hold its previous reading of 53.6.
In making a preliminary decision on the sale of S. Kidman & Co to a Chinese consortium, the Treasurer Scott Morrison has shed some light on what the government defines as being in the “national interest”. He describes the Chinese bid as being contrary to Australia’s national interest, because:
The economic and political reach of the US, arguably the most visible and vocal Western country on the African continent is gradually being diminished. This follows a pattern in which the economic and political stronghold of Western countries has ebbed as the role of non-traditional donors such as China has grown in importance.
Mahathir Mohamad, Malaysia’s former prime minister, seems to have missed the mark with the Citizen’s Declaration that he has so vigorously supported. The bulk of the Declaration is directed at Prime Minister Najib Razak and his alleged wrongdoings in connection with the beleaguered 1Malaysia Development Berhad (1MDB). Therein lays its fatal flaw.
Japanese Prime Minister Shinzo Abe’s Partnership for Quality Infrastructure in Asia (PQI) aims to consolidate Japan’s regional clout among the emerging Asian economies. PQI, which is often viewed as a competing formulation vis-à-vis the Chinese mega infrastructure designs, is critical to achieving the goals of Japan’s national growth strategy.
Japan aims to promote high quality infrastructure partnerships and facilitate expansion to emerging markets in Asia, and enable a revolution in productivity by investment in the future.
GDP growth in the United States fell significantly, growing just 0.5% in the first quarter of 2016. Despite economists’ predictions of continued economic strength, real GDP growth was just 0.5% in the first three months of this year after rising 1.4% in the fourth quarter of 2015. Economists had expected 0.7% growth after downgraded estimates throughout the quarter, largely due to weak data from the housing, manufacturing, and export sectors.
The recent sustained attention given to the economic performance of Africa is a sharp departure from the usual negative and patronising representation of the continent in the global media. The old narrative represented a continent riddled by wars, famines, disease and the burdens of poor infrastructure and reckless governments.
While many think that the description of Africa as a hopeless continent was harsh, the Africa rising narrative was considered rather hyped.
The state of India’s manufacturing sector is concerning. Especially when compared to the massive transformation registered in this sector by other Asian countries in similar stages of development. Contributing around 16 percent of India’s GDP, manufacturing remains far below its potential, which should be at least 25 percent.
With home sale growth weakening and America’s trade balance worsening, the Federal Reserve announced it would not increase interest rates.
While the Aquino reforms have ignited great progress, the next Philippines president will be more independent in critical economic, political and military decisions that will also shape Southeast Asia’s future, says Dan Steinbock.
After President Ferdinand Marcos (1965-86) and a close relationship with the Reagan administration, the Philippines became known as the “sick man of Asia.” In the past six years, a new confidence has been restored by President Benigno Aquino III, 56, who enjoys the trust of most Filipinos, according to surveys.
