Mini textile park in Hulagur to provide employment to women: Karnataka CM
Textile companies could 'sprint and soar' with FTAs, Govt push
DPIIT seeks views of different ministries on draft national retail trade policy
Customs notifies Rules of Origin for India-Australia trade pact
53% clusters functional out of total approved for development under SFURTI scheme: Govt data
Why RBI is finding it tough to tame inflation
Global developments likely to muddle Indian economic outlook: Ministry
India's UP state cabinet clears UP Warehousing & Logistics Policy 2022
INTERNATIONAL
FDI in Bangladesh not rising due to policymakers' attitude, event told
Exploring The EU’s Trade Network: The Benefits And Challenges Of Increased Trading Partnerships
Switzerland assists Sri Lanka’s EDB to carry out market research
2nd round of Cambodia-UAE CEPA talks conclude
Uzbekistan and Azerbaijan step up multifaceted cooperation
Jan-Nov goods exports to Oz nearly double to over $346M
Foreign financial institutions raise China's 2023 GDP growth forecasts
NATIONAL
Karnataka Chief Minister Basavaraj Bommai on Saturday said that a mini textile park will be made functional in Hulagur this year aiming to give employment to women. Speaking after laying the foundation stone for the new Hulagur Police Station building here on Saturday, he said Hulagur village is thickly populated and situated in the middle of Shiggaon, Savanur, and Kundagol taluk. "It is also an important trade centre. In view of this, the government has initiated a lot of development works. The society and KCC Bank are functioning well and advancing loans to farmers. The minorities are more in number and an Urdu School has been developed. A 30-bed hospital is being constructed and a bus stop has been built," Bommai said. The Chief Minister said a 1,000-tonne capacity godown has been built in APMC and issued permits to traders to do business with farmers. "An agricultural equipment centre is under construction. The government has given a lot of impetus to social, economic, health and education sectors," he added. Union Coal and Mining Minister Pralhad Joshi and other local elected representatives were present on the occasion. Bommai earlier said the state budget for the next financial year will be tabled in February 2023."Already two rounds of discussions have been held with the Finance Department in this regard," CM Bommai said while talking to the reporters. He further said that after the current session, talks will be held with all the Departments, associations and organizations. "Preparations for the pre-budget meeting will be started next month," he added. The proposed budget session would be the last session of the current Karnataka assembly as the next assembly elections will be scheduled to be held. As the cases of COVID are rising in countries like China, Japan and Brazil, Bommai said that the test for Influenza-like Illness (ILI) and Severe Acute Respiratory Infection (SARI) tests will be increased as well as ramp up the booster dose. "Preparedness of the oxygen plants in hospitals, beds, and other health infrastructure is on. The ICU units are getting ready. People must wear masks and maintain social distancing. Whatever protocol was followed in the airports and bus terminals earlier will be re-introduced," he further said.
Source: Business-standard
Brokerage firm Emkay Global has initiated coverage on textile firms Vardhman, Gokaldas Exports NSE 1.61 % and Nitin Spinners NSE 3.14 % with a buy rating as the government’s incentives for the sector, the shift in business from China to other countries, and trade agreements could help the domestic industry ‘sprint and soar’.The firm said it has been ‘gloom and doom’ for the domestic industry in the past few months because of high cotton prices and low demand for textiles and apparel in Western countries.“New FTAs (free trade agreements) would offer opportunities to large established players, capturing a higher wallet share by entering into adjacencies in existing geographies,” said Emkay’s analysts Abhineet Anand and Chinmay Kabra in a recent note to clients.“Textile PLI (productionlinked incentive) schemes by the government are largely focused on MMF (man-made fibre) — a weak point presently, for the Indian textile industry — which will help to build an ecosystem similar to cotton textiles’, over the medium term.”
Vardhman Textiles NSE 4.25 %
CMP: Rs 293.50
Target Price: Rs 455
Upside Expectations: 55%
YTD Stock Movement: -41%
Best placed to withstand current woes in the textile sector; strong balance sheet
Country’s largest spinning capacity, better utilisation and higher realisation versus peers
Debt-to-equity ratio stands at 0.24 times versus 1.24 times a decade ago
Nitin Spinners
CMP: Rs 184
Target Price: Rs 310
Upside Expectations: 68%
YTD Stock Movement: -32%
Moved up the value chain by widening the product portfolio
On track to increase yarn, knitting and weaving capacities by 30-50% over 12-15 months
Demand uptick and lower cotton prices remain key triggers
Gokaldas Exports
CMP: Rs 342.50
Target Price: Rs 575
Upside Expectations: 68%
YTD Stock Movement: 4.4%
Better return on equity (RoE) profile and higher earnings prospects
During FY22-25, earnings per share will grow 24% and RoE will be at 18%
Five-year average priceto-earnings (PE) ratio at 14 times, with a 14% RoE
Source: Economic times
The Department for Promotion of Industry and Internal Trade (DPIIT) has sought the views of 16 departments and ministries on its draft national retail trade policy, which is aimed at the overall development of all formats of the sector, an official said. After getting comments from all the departments and ministries, DPIIT would seek approval of the Union Cabinet on the policy, the official added. The policy would focus on formulating strategies to provide a globally competitive and sustainable environment for the overall development of retail trade through targeted efforts. The objectives of the policy include ensuring easy and quick access to affordable credit, facilitating modernization and digitisation of retail trade by promoting modern technology and superior infrastructural support; development of physical infrastructure across the distribution chain; promotion of skill development and improve labour productivity, and providing an effective consultative and grievance redressal mechanism for the sector. India is the world's fifth-largest global destination in the retail space. According to a report of CII-Kearney on retail, a cohesive national retail policy can help generate 30 lakh more jobs by 2024. The report was released in November 2020.The retail industry is likely to see 10 per cent annual growth to reach about USD 2 trillion by 2032, according to a BCG-RAI report. Besides the retail policy, the DPIIT is also working on formulating a national e-commerce policy to promote the growth of the online retail sector in the country. A new industrial policy is also on the anvil, the official said. This will be the third industrial policy after the first in 1956 and the second in 1991.
Source: Economic times
With the India-Australia interim trade deal set to kick off later this month, the Central Board of Indirect Taxes and Customs has notified the Rules of Origin. The notification, which relates to the eligibility requirement to claim the preferential customs duty on trade in goods, under the economic cooperation and trade agreement (ECTA), will come into effect from December 29. This is when the ECTA will also come into effect. RoAs specify the threshold for value addition in the country concerned to qualify for the tax concessions under the FTA, so that the benefits are not misused by firms based in other countries. Called the Customs Tariff (Determination of Origin of Goods under the India-Australia Economic Cooperation and Trade Agreement) Rules, 2022, the notification by the CBIC lays out the origin criteria based on which the product would be eligible for the preferential customs duty. India and Australia had in April this year signed the ECTA, which is expected to cover 90% of the bilateral trade between the two. India will benefit from preferential market access provided by Australia on 100% of its tariff lines. India will be offering preferential access to Australia on over 70% of its tariff lines, including lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines. Experts said the notification by the CBIC would help businesses evaluate the benefits of the ECTA for their products. Once the tariff notification is rolled out for the ECTA, Indian businesses need to evaluate the benefit extended on the inbound and outbound trade from the perspective of supply chain optimisation and enhanced access to a new market, covering a large cross section of goods or sectors,” said PwC in a note. Abhishek Jain, Partner Indirect Tax, KPMG in India said, “It is important to note that each FTA has its own origin rules and nuances thereof, and given the CAROTAR provisions which were introduced by the Indian government in 2020, the onus is on Indian importer to ensure that the said rules are duly complied with. As such, for Companies looking to take benefit of the Indian- Australia FTA, a detailed perusal and compliance of the origin rules remains indispensable.” Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner. India-Australia bilateral trade for both merchandise and services is valued at $ 27.5 billion in 2021
Source: Financial express
Ease of doing business for MSMEs: The government’s mega cluster support scheme SFURTI (Scheme for Fund for Regeneration of Traditional Industries), which brings traditional sectors and artisans into organised clusters, has 53 per cent of approved clusters functional. Between 2014-15 (when the scheme was revamped from the original scheme launched in FY06) and November 30, 2022, 498 clusters were approved for development across India, of which 266 were functional. Sharing data in the Lok Sabha on December 22, minister of state for MSMEs, Bhanu Pratap Singh Verma added that 498 clusters approved (against the target of 400 clusters) with the government’s assistance of Rs 1,292 crore benefitted around 2.94 lakh artisans.The traditional sectors covered under SFURTI are textiles, handicrafts, bamboo, agro-processing, honey, khadi, coir, etc. Under the scheme, assistance up to Rs 2.5 crore is provided for ‘regular clusters’ with up to 500 artisans and up to Rs 5 crore for ‘major clusters’ which consist of over 500 artisans. The support offered to clusters also includes infrastructure creation such as the establishment of Common Facility Centre (CFC), procurement of new machinery and raw material, capacity building, design and marketing linkage, exposure visits, etc., said Verma. Year-wise, 106 clusters became functional in FY22 in comparison to 96 in FY21, 19 in FY20, 12 in FY19, 16 in FY18, two in FY17 and none in FY16. In terms of jobs to artisans, 62,149 artisans benefitted in FY22 vis-a-vis 62,722 in FY21 down from 84,720 in FY20, the latest data on MSME ministry’s Dashboard showed. However, the scheme is presently under consideration for continuation, said Verma. In October this year, the government’s Khadi and Village Industries Commission had organised the first SFURTI Mela in Delhi, a national-level exhibition of traditional products. Handloom, handicrafts, khadi, coir, and agro-processing products were showcased by 100 artisans from 50 SFURTI clusters including Sozni Embroidery cluster of Jammu and Kashmir, Cane and Bamboo cluster of Meghalaya, Channapatna Toy cluster of Karnataka, Natural Dye Cluster of Rajasthan, Madhubani painting Cluster of Bihar, etc.
Source: Business-standard
Even as inflation has crept downwards, the battle against it continues. After peaking at over 16% in May, the Wholesale Price Index, a measure of wholesale prices, has halved. The Consumer Price Index (CPI), a measure of retail prices, has also declined steadily. In spite of this, India’s central bank raised interest rates again, this time in the first week of December, bringing the total volume of rate hikes this year to 2.25 percentage points.
Source: Live mint
Economic developments globally are likely to complicate the outlook further for the Indian economy next year and there is a need to maintain vigilance on the external front, according to the Monthly Economic Review for November by the Indian finance ministry. The external sector continues to face the headwinds emanating from the global slowdown, it noted. However, the downside to a widening current account deficit is expected to be limited by a robust services export performance through the rest of the year and by inward remittances, it said. Inflation pressures have been easing, with retail and wholesale inflation falling to 11- and 21-month lows, respectively, in November. Core inflation, however, continues to remain sticky and persisted at an elevated level of 6 per cent in November this year, partially reflecting increased pass-through of high manufacturing costs to consumer prices as demand continues to recover swiftly, it said. No country can afford to sit on its laurels, India included, it said, adding that continued commitment to macroeconomic stability will underpin both economic performance and investor interest in India. ''The latter is very high, currently. It needs to be nurtured. Going forward, India needs to focus on medium-term challenges such as securing technology and resources for energy transition and skilling its youth for the 21st-century economy while staying the course on fiscal consolidation at the general government level,'' it added.
Source: Fibre2Fashion
India’s Uttar Pradesh state cabinet has approved the 'UP Warehousing and Logistics Policy 2022', according to state's industrial development minister Nand Gopal Gupta, who recently said the objective of the policy is to create a strong transport infrastructure network and upgrade and improve the existing warehousing and logistics infrastructure, Gupta said. The approval comes ahead of the Global Investors' Summit, to be held in state capital Lucknow in February next year. He said the policy will prove to be quite useful in creating a global-level business environment and developing a logistics ecosystem in the state, a news agency reported. "On the other hand, the infrastructure of facilities like storage facilities, logistic park, dry ports and cargo terminal etc. will get an expansion. It will help in making the state a $1-trillion economy," the minister added.
Source: Fibre2Fashion
INTERNATIONAL
Foreign direct investment (FDI) in Bangladesh has not been rising due to the attitude of policymakers, an event organised by the Policy Research Institute (PRI) in Dhaka recently was told. "Policymakers seem to be anti-FDI," said AKM Abdullah, senior financial sector specialist of the World Bank. "Permissions from 43 organisations are needed for making investments. Attesting a copy of a document costs money. They [bureaucrats] forget about facilitating trade when they become secretaries," The country’s foreign minister AK Abdul Momen was quoted as saying by a domestic media outlet. While cent per cent investment proposals in the United States are cleared, only three out of 100 proposals are approved in Bangladesh, he noted. The event was organised to launch four books
Source: Fibre2Fashion
The European Union (EU) is the world’s largest economic bloc, boasting a total of 28 member states and an estimated population of over 500 million people. As such, it has a wide network of trading partners, both within the EU and outside of it. This article will explore how many trading partners the EU has and what types of trade agreements exist between them. We will also look at the EU’s role in international trade, its approach to free trade, and the benefits of increased trade ties between the EU and its trading partners. Finally, we will examine the potential pitfalls of increased trading partnerships and the challenges posed by Brexit. By the end of this article, readers will have a thorough understanding of the EU’s trade network and the implications of increased trading ties.Because of its open economy, trade is a critical component of the EU’s success. In order to address trade barriers, the Union is currently negotiating a number of free trade agreements (FTAs). It is also a founding member and key player in the World Trade Organization (WTO), as well as a founding member and key player in the WTO. External trade is critical for the EU’s 30 million jobs, and the global economy is expected to grow more outside of the EU. The European Union has traditionally advocated for an open and fair international trading system. The European Parliament’s role as a co-legislator on trade and investment issues has been improved as a result of the Lisbon Treaty. During the 21st century, the EU had to find new ways to ensure better access to third-country markets for EU citizens in order to pursue the WTO’s Doha Development Agenda. Agreements on specific issues, such as industrial goods tariffs, have been reached between the EU and the United States since 2016, according to the EU. The two countries have concluded negotiations on a trade agreement, and the draft agreement is currently being ratified. The EU has also launched FTA negotiations with Indonesia, Tunisia, the Philippines, Australia, and New Zealand as part of its efforts to expand trade. With more than US$64 trillion in foreign direct investment (FDI), the EU is by far the world’s largest investor and one of its largest recipients. The EU reached an agreement in principle in December 2020 with China on a Comprehensive Agreement on Investment (CAI). The EU is also in talks with Myanmar and intends to pursue a similar policy with Taiwan and Hong Kong. In 2021, the United States was the EU’s leading trade partner, representing 19.9% of the bloc’s total exports. The European Union’s biggest trading partners are the United States, China, Switzerland, and the Russian Federation. The EU exports more to the US than any other country, with over $400 billion in goods and services exchanged annually. China is the EU’s second largest trading partner, with over $300 billion in goods and services exchanged every year. Switzerland and the Russian Federation are the third and fourth largest trading partners respectively, with around $150 billion and $120 billion in goods and services exchanged annually. These four countries make up the majority of the EU’s foreign trade, with the US and China accounting for almost half of the EU’s total exports and imports.The European Union (EU) is a major economic player around the world, and its trading partners play a critical role in its stability and prosperity. According to data from the Federal Statistical Office of Germany (Destatis), the United States was the EU’s largest trading partner in 2019, with a total trade value of 1000 billion euros. The United Kingdom is the most populous country, with a total of 793.03 billion euros, followed by China (665.94 billion euros). Switzerland is the fourth largest trading partner in Europe, with a total trade volume of 414.9 billion euros. Other large trading partners include the Netherlands (100.83 billion euros), France (66.2 billion euros), Italy (64.9 billion euros), Belgium (54.2 billion euros), Poland (50.7 billion euros), and Austria (48.7 billion euros). The EU is heavily reliant on its trading partners, which is why understanding the dynamics and trends of their trade relationships is critical. The EU has been able to establish a number of trade agreements with its trading partners in order to maintain a fair and balanced trade relationship. The trade agreements between the EU and its partners benefit both sides of the equation because they promote mutual prosperity. A conclusion can be drawn from the EU’s status as a major player in the global economy: its trading partners are critical to its long-term success. The EU is highly reliant on its trading partners, and the trade agreements it has negotiated with them benefit both the EU and its partners. Understanding the dynamics and trends of the trading relationships between the EU and its trading partners is therefore critical for promoting mutual prosperity.The European Union (EU) is the world’s largest trading partner, accounting for over 15% of global trade. The United States is the EU’s second largest trading partner, accounting for nearly 12% of all EU imports and exports. The United States is the EU’s largest export market, accounting for about one-third of all EU exports. The EU is also the largest source of imports for the United States, accounting for over one-quarter of all imports. Both the EU and the United States benefit from their close trading relationship, as the two economies are highly integrated and the EU is the largest market for US exports. The economic partnership between the EU and the United States is a key factor in the global economy.During the first half of 2020, global trade was severely impacted by the Covid-19 pandemic. Exports from the United States, China, Germany, and the Netherlands, all of which are major trade partners, fell significantly. Despite the pandemic’s significant impact, the EU maintained its current trade level, which was roughly the same as it was in the first half of 2019. The EU’s trade policies have proven to be effective during the pandemic, and they are a testament to this. In response to the pandemic, the EU has been able to mitigate its impact on international trade because of the effective implementation of regulations, guidelines, and strong coordination among its member states. With this, the bloc has remained the world’s leading trade partner and the world’s leading trading bloc. The EU’s resilience has allowed it to remain a vital contributor to the global economy and a major player in international trade. Despite the pandemic’s effects, the EU was able to maintain its level of trade in comparison to the first half of 2019. Despite these challenges, the EU remains the world’s largest trading bloc, thanks to its strong trade policies.
Source: Malaysian digest
The Sri Lanka Export Development Board (EDB) has recently signed a memorandum of understanding with the Swiss Import Promotion Programme (SIPPO) which operates under the State Secretariat for Economic Affairs (SECO) of Switzerland to conduct market research studies. Dominik Furgler, Ambassador for Switzerland in Sri Lanka and Mr. Suresh D de Mel, Chairman & CE of EDB signed the MOU on behalf of the respective organizations. SIPPO facilitates EDB to carry out comprehensive market research studies for selected Sri Lankan export product sectors namely, Processed Food, Sustainable Fish & Seafood and Value-added Textiles aiming to better integrate Sri Lanka into world trade. SIPPO will conduct these market research studies through competent international sector experts to provide first-hand information on market access requirements to the member countries of the European Free Trade Association (EFTA) including Iceland, Liechtenstein, Norway, Switzerland and selected EU countries especially in the Eastern Europe. According to the EDB, the proposed Market Studies will cover the areas of present trade regulations, non-tariff measures & technical regulations, market access requirements, packaging & labelling, quality standards & certifications, trade related environmental & social requirements, pricing, logistics, information on distribution channels and market demand analysis related to each selected sector for the identified markets in the EU Region. The sectoral market study reports will also include details of main buyers in the identified countries and this will result in Sri Lankan exporters to expand market access and enhance market share in the European region. The research findings will be disseminated among Sri Lankan export community and related private and public sector organizations via series of online sectoral webinars. The reports will also be made available in the EDB website for the benefit of the public. Currently, more than 6,000 products are eligible for zero duty access to the EU region under EU GSP+ scheme. Sri Lanka has done USD 2, 948 million worth of exports to EU region in 2021 which contributed for 24% of Sri Lanka’s total export earnings amounting to US$. 12 .2 billion in 2021. “Sri Lanka has potential to expand the market share by entering into new/untapped markets enjoying the zero duty market access offered the EU GSP+ Scheme,” the EDB said.
Source: Colombo page
The second round of formal negotiations for the Cambodia-United Arab Emirates Comprehensive Economic Partnership Agreement (CAM-UAE CEPA) concluded recently. Progress was made on provisions concerning key areas for sustainable and inclusive socio-economic development like trade in goods and services, investment, agriculture, e-commerce, industry and energy. The three-day follow-up round of talks was held in Phnom Penh, nearly two months after the first one organized in Abu Dhabi. The latest talks ironed out several points of disagreement to help ensure a comprehensive and long-term yet flexible framework for the CEPA that better establishes common positions and interests, the Cambodian commerce ministry affirmed in a statement. The third round of talks is set to be held in the UAE next year. The country is exploring the export potential for agricultural products, textile-related items and general components to the UAE and the Middle East.
Source: Fibre2Fashion
On December 24 this year, within the framework of the visit of the government delegation of Uzbekistan to Azerbaijan in Baku, negotiations were held between the Deputy Prime Minister - Minister of Investments and Foreign Trade of the Republic of Uzbekistan Jamshid Khodjaev and the Minister of Economy of the Republic of Azerbaijan Mikayil Jabbarov. The meeting was also attended by heads of key ministries and departments of the two countries. During the talks, a broad agenda of bilateral cooperation in trade, economic, investment, transport and logistics was considered. The current state and prospects for the development of mutual trade were discussed. In 2021, the volume of bilateral trade increased by 42%, and by another 52% since the beginning of this year. The availability of opportunities and resources for a multiple increase in trade turnover in the coming period was emphasized. The parties agreed to take measures to form a range and increase mutual deliveries of demanded products, conduct regular trade and business missions on a mutual basis, exhibitions of national products in large cities, conclude long-term trade contracts for the mutual supply of fruits and vegetables, food, textile, leather and footwear products in trade networks of the two countries. Interaction in the field of industrial cooperation and investment partnership was considered as one of the priority areas of cooperation. Mutual interest was expressed in accelerating joint work on the creation of the Uzbek-Azerbaijani investment fund, as well as working out the financial and technical aspects of 5 large projects worth over $700 million. An agreement was reached to establish a Working Group to coordinate interaction in these areas. The meeting participants focused special attention on measures to further expand joint ventures, including the production of cars, the production of jewelry and light industry products. Discussion of measures to develop partnerships in the transport and logistics sector also occupied a key place on the agenda. The organizational aspects of holding the first meeting of the Mixed Commission on International Road Transport were agreed upon in order to discuss measures to create conditions for a multiple increase in the volume of transportation of goods, including essential goods through the territories of both countries. In this context, the prospects for taking joint measures to develop transport infrastructure were also noted. Following the meeting, the parties signed a memorandum of understanding on the establishment of the Azerbaijan-Uzbek Investment Fund. This fund, as emphasized, will contribute to the further strengthening and expansion of bilateral economic cooperation and the development of industrial cooperation.
Source: Ein news
Cambodia exported $346.034 million worth of goods to Australia in the first 11 months of 2022, nearly doubling on-year with a 97.57 per cent rise, according to the General Department of Customs and Excise (GDCE). This represented 72.33 per cent of the merchandise trade between the two countries during the January-November period, or $478.404 million, which was up 69.68 per cent year-on-year. Meanwhile, Cambodian imports from Australia were to the tune of $132.370 million, up 23.94 per cent on a yearly basis. The Kingdom’s trade surplus with Australia for the 11-month period expanded by 212.7 per cent on-year to reach $213.664 million. Last month alone, the Cambodian-Australian merchandise trade clocked in at $39.42 million, down 7.1 per cent from $42.45 million in November 2021 but up 14.2 per cent from $34.52 million in October 2022. The Kingdom’s exports accounted for $33.93 million, up 39.8 per cent year-on-year and up 18.8 per cent month-on-month, while imports came to $5.49 million, down 69.8 per cent year-on-year and down 7.9 per cent month-on-month. In an interview with The Post, Cambodia Chamber of Commerce vice-president Lim Heng highlighted agriculture as a key component of Cambodian relations with Australia, and not exclusively in the field of trade. Canberra has also provided considerable amounts of financial and technical assistance to raise agricultural productivity in Cambodia, he explained. He expects Cambodian-Australian trade relations to continue to improve, propelled by “good bilateral cooperation” as well as the Regional Comprehensive Economic Partnership (RCEP) to which they are both signatories, along with 13 additional Asia-Pacific countries: all nine other ASEAN nations and China, Japan, New Zealand and South Korea. “As the two countries enjoy good political and diplomatic relations, trade and foreign direct investment [FDI] will increase in tandem,” he said, adding that Australian investors have entered the Cambodian market, notably the mining sector. He was most likely referring to Australian miner Renaissance Minerals (Cambodia) Ltd, which on June 21, 2021 began the commercial operation of its Okvau Gold Project in Mondulkiri province, becoming the Kingdom’s first gold producer. Cambodia mostly exports agricultural products, textile-related items and bicycles to Australia, and notably imports electronics, vehicles and food products such as beef, dairy goods and fruits, according to Heng. Late last week, Minister of Commerce Pan Sorasak discussed improvements in Cambodian-Australian relations in terms of trade and general cooperative engagements, underscoring Canberra’s contributions to the Kingdom’s socio-economic development, including the provision of Covid-19 vaccines. The minister was speaking at a meeting with outgoing Australian ambassador to Cambodia Pablo Kang on December 22, the commerce ministry noted in a statement. Sorasak took the occasion to thank the government and people of Australia for their assistance under the Cambodia-Australia Partnership for Resilient Economic Development (CAP-RED) programme and Regional Trade for Development (RT4D) facility, commenting that his ministry would “benefit greatly” from these initiatives. Both sides hailed the “substantial conclusion” of talks for an upgrade to the ASEAN-Australia-New Zealand Free Trade Agreement (AAZNFTA) – formally announced on November 13 at the dual ASEAN summits in Phnom Penh – which was one of the Kingdom’s priority economic deliverables (PED) for its 2022 chairmanship of the Southeast Asian bloc, the statement said. The ASEAN Secretariat reported that the merchandise trade of the bloc with Australia and New Zealand reached $81.6 billion and $11 billion in 2021, respectively, up 49 per cent and 22.5 per cent on a yearly basis. Foreign direct investment (FDI) flows from Australia and New Zealand to ASEAN totalled $589 million last year, it added. The commerce ministry reported that bilateral trade between Cambodia and Australia totalled $324 million last year, up 52 per cent compared to 2020.
Source: Phnompenhpost
Based on an anticipated rebound in business activity next year and the accelerated optimisation of COVID-19 control measures, foreign financial institutions have raised their forecasts for China's gross domestic product (GDP) growth for 2023. Nomura Securities has also upgraded its forecast for China's 2023 annual GDP growth to 4.8 per cent from the previous 4 per cent. China’s Central Economic Work Conference, which concluded on December 16, decided the country’s economic priorities for next year. UBS Securities said the signals to stabilise the economy reiterated at the conference echoed messages delivered at a meeting of the Political Bureau of the Communist Party of China central committee in early December, an official Chinese media outlet reported. Backed by robust infrastructure investment, resilient growth in manufacturing and the recovery of consumption, China's GDP growth will reach about 5 per cent next year, exceeding UBS' previous prediction of 4.5 per cent, the company estimates. Morgan Stanley, which anticipates a ‘V-shaped’ recovery in China next year, also raised its forecast for the country's GDP growth rate in 2023 to 5.4 per cent, up from its previous projection of 5 per cent. A sharper rebound in business activity, expected to materialize late in the second quarter of next year, and more movement of people starting in early March, are major reasons for the company's upgraded forecast. China's economic activity will return to the pre-pandemic level from the second quarter of 2023, and the upward momentum will continue until the end of the year, Morgan Stanley experts added. Goldman Sachs raised its 2023 China GDP growth rate estimate from 4.5 per cent to 5.2 per cent. China will restart its growth given the outlook of a stronger A-share market, a mild rise in interest rates, increased demand for commodities, especially energy, as well as the renminbi's expected appreciation against the US dollar, said Shan Hui, the company’s chief China economist.
Source: Fibre2Fashion
