IMF- Economy

WASHINGTON - The International Monetary Fund on Wednesday cut its growth forecast for China's economy this year to 6.5 per cent, but said signs of recovery had emerged in the world's most populous nation. The IMF's 2009 forecast, made in its bi-annual World Economic Outlook report, was down slightly from its January prediction of 6.7 per cent. But the growth rate is "still a strong performance given the global context," it said. "Also, there were some signs of a turnaround in economic activity in China in the first quarter of 2009." The global economy is projected to shrink by 1.3 per cent in 2009 due to the financial crisis, with the demand collapse in advanced economies and worsening global financial conditions dealing Asian nations a heavy blow, it said.
The IMF predicts China's growth to pick up to 7.5 per cent in 2010.


The IMF unveiled a darker outlook for the US economy Wednesday than just three months earlier, forecasting a deeper recession (-2.8%) in 2009 and no growth at all in 2010. US GDP fell at an annualized pace of 6.3% IN 4th quarter of 2008 and will be dropped in 1st quarter of 2009, while unemployment rate dropped to 8.5% in March.

source:www.channelnewsasia.com

Tend to DECREASE- Oil Price

VIENNA (Reuters) - OPEC's decision on Sunday to resist new supply cuts laid the ground not just for cheaper oil to help heal the economy, but for warmer relations with the world's biggest energy consumer.
Two days after U.S. President Barack Obama called Saudi King Abdullah, OPEC said it would stick to existing supply targets, even though fuel inventories have swollen and oil prices are much lower than it would like.
The Organization of the Petroleum Exporting Countries said the weakness of the world economy, which effectively receives a financial stimulus from cheaper oil, was a central motivation.

By Barbara Lewis - Analysis

This is a sign that the oil price is expected to be lower, and i think it is a good sign for all of us...then we can save more for petrol, while all of us are in the financial crisis (so sad)...

Japan slips deeper into recession, says no end to slump in sight

Japan announced a triple slump in key economic data Friday and said there was no end to the bad news in sight, as US President Barack Obama blasted Wall Street bonuses handed out amid the financial crisis. Taking on one of the most politically explosive issues of the economic downturn, Obama expressed outrage over a report that Wall Street firms gave out more than US$18 billion in bonuses last year. "That is the height of irresponsibility. It is shameful," the president said, calling on US financial firms to "show some restraint and show some discipline and show some sense of responsibility." Just months after major Wall Street firms asked for billions of dollars in government aid, the report will give ammunition to critics of federal bailout measures as well as Obama's proposed US$819 billion stimulus package.
"The problem is very serious," Economics Minister Kaoru Yosano said. "As to when the economy will bottom out, it is impossible to predict at this time as the problem is not only domestic but global." Japan's unemployment rate jumped to 4.4 per cent in December, the country's highest rate in three years, while household spending meanwhile tumbled 4.6 per cent as consumers tightened their belts. Analysts say Japan's economy now looks set to log its worst quarter since the oil crisis in 1974.
“The labour market remains extremely weak, with very few signs that things are starting to improve," analysts at Goldman Sachs said. The jobless rate in Germany, Europe's largest economy, meanwhile jumped to 8.3 per cent, significantly higher than had been forecast.

http://www.channelnewsasia.com/

UPDATE 12-Oil settles 6 pct higher as OPEC output drops

NEW YORK, Jan 23 (Reuters) - Oil prices rose more than 6 percent on Friday as mounting evidence that OPEC is complying with the bulk of its record output cuts countered gloomy economic data that further dimmed the outlook for global energy demand.
U.S. crude CLc1 settled up $2.80 at $46.47 a barrel, while London Brent LCOc1 rose $2.98, to $48.37 a barrel.
The gains came after oil consultant Petrologistics estimated OPEC production would fall by 1.55 million barrels per day in January as part of the cartel's efforts to meet a 2.2 million bpd reduction agreed in December.
"I think this represents anticipation that the OPEC production cuts are really happening after the Petrologistics estimates on January OPEC production," said Tim Evans, energy analyst for Citi Futures Perspective.
Members of the Organization of Petroleum Exporting Countries are cutting output in reaction to a slide of more than $100 in oil prices since July as global economic weakness slams energy demand.

source: www.uk.reuters.com

Federal Reserve, six other central banks slash interest rates to cope with crisis

WASHINGTON, Oct. 8 (Xinhua) -- The Federal Reserve, together with six other major central banks from around the world, slashed interest rates Wednesday to cope with the current financial crisis. The U.S. central bank decided to lower its target for the federal funds rate 50 basis points to 1.5 percent. It also approved a 50-basis-point decrease in the discount rate to 1.75 percent.

The Federal Reserve, together with six other major central banks from around the world, slashed interest rates Wednesday to cope with the current financial crisis.

source: http://www.chinaview.cn/index.htm