world economic news

Economic News Daily – Thursday 09/06/2022

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CHINA

China’s May exports advanced 16.9% from a year ago, following a 3.9% rise in April, the General Administration of Customs said. Imports, on the other hand, rose 4.1% in May from a year earlier. “In May, logistics and supply chains were well repaired, so from the view of supply, unfavorable factors which weighed down export growth in April have greatly eased, leading to a jump in the year-on-year growth last month,” Zheng Houcheng, director of the Yingda Securities Research Institute, said.

WORLD

The OECD slashed its global growth forecast to 3% this year — down from 4.5% the organization predicted only a few months ago. It estimates growth will slow even further in 2023. “The invasion of Ukraine, along with shutdowns in major cities and ports in China due to the zero-COVID policy, has generated a new set of adverse shocks,” the Paris-based organization said in its latest economic outlook Wednesday.

INDIA

The Reserve Bank of India raised its key repo rate by 50 bps to 4.9% on Wednesday, after May’s surprise 40 bps off-cycle hike, surprising markets had forecast a 40 bps rate hike, aiming to ensure inflation remains within target going forward while supporting growth. The central bank retained the gross domestic product growth forecast for the current financial year 2022-23 at 7.2%.

EUROZONE

In the first quarter of 2022, seasonally adjusted GDP increased by 0.6% in the euro area and by 0.7% in the EU
compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the
European Union. In the fourth quarter of 2021, GDP had grown by 0.2% in the euro area and 0.5% in the EU. Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 5.4% in the euro
area and by 5.6% in the EU in the first quarter of 2022, after +4.7% in the euro area and +4.9% in the EU in the
fourth quarter of 2021.