|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1149.74 |
USD/Ton |
0% |
|
VSF |
2165.17 |
USD/Ton |
0% |
|
ASF |
2518.12 |
USD/Ton |
0% |
|
Polyester POY |
1105.52 |
USD/Ton |
0% |
|
Nylon FDY |
2866.15 |
USD/Ton |
0% |
|
40D Spandex |
6059.86 |
USD/Ton |
0% |
|
Nylon DTY |
1343.00 |
USD/Ton |
0% |
|
Viscose Long Filament |
3111.82 |
USD/Ton |
0% |
|
Polyester DTY |
6051.67 |
USD/Ton |
0% |
|
Nylon POY |
1392.13 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2669.61 |
USD/Ton |
0% |
|
Polyester FDY |
2714.65 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2767.88 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1834.34 |
USD/Ton |
0% |
|
45S T/C Yarn |
2931.66 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2014.49 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2473.08 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2915.28 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2669.61 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.15 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.97 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.06 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.77 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.79 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16078 USD dtd. 3/08/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The 90’s saw the emergence of Indian Information Technology sector, followed by its firm establishment, and currently striving to transit towards a more mature, value-added model. The 2000’s also saw Indian pharmaceutical industry spreading its tentacles, boosted to a lot by the fact that a lot of blockbuster drugs went off-patent, and generic opportunity that lied therein attracted investments, R&D, and talent. Not surprisingly these 2 industries have captured lot of attention, media space, scrutiny, controversies, and trade disputes in equal measure. What has quietly been unraveling in all these years is another industry now big and mature enough to rightfully claim its due under the sun.
This story of Indian Textile industry could well and truly be India’s very own first big manufacturing success. Let’s first put the sector into perspective to realize its significance. The sector now accounts for about 14% of total industrial production, 15% of exports and 4% of India’s GDP. The size of the Indian textile industry is over $95 billion at present, including nearly $42 billion in exports, and is expected to grow to over $225 billion by 2021. Exports are likely to reach $83 billion in the same period. It employs about 45 million workers, with a potential to attract further 35 million workers in the next 5 years. Compare this with roughly $100 billion of IT exports and 3.1 million employment, $35 billion of Gems and Jewellery exports with 2 million employment, $15 billion of pharmaceutical exports with 0.4 million employment, and the relevance of the sector starts standing out. Just as the 24x7 working model spawned the growth of Indian IT industry, blockbuster drugs going off- patent aided Indian Pharmaceutical industry, Indian textile industry too is seeing favorable industry dynamics.
Let’s see some of the multitude of factors at play here.
All said and done, while Indian textile industry has grown by leaps and bounds, its share in the global market is still a measly 4% compared to 35% of China. Moving up the value-chain will play a pivotal role in catapulting us further. The term textile in totality includes everything from fibre, yarn, to readymade garments. So of the total Indian textile exports worth $41bn, the share of value-added ready-made garments stood at only $16 billion or about 40% of the total pie. Clearly, a lot needs to be done, should be done, and is being done. One look at the financial performance and Annual reports of some the companies in this space will reveal much more than this 900 word article!
SOURCE: The IBN Live
The Maharashtra Textile Department and Industries Department called for investment in its recently inaugurated mega textile park Nandgaon Peth in Amravati district. As per the state textile policy, the Maharashtra Industrial Development Corporation (MIDC) initiated project will have benefits of 10 per cent capital subsidy and up to 7 per cent subsidy. It has seven stars facilities including common effluent treatment plant (CETP). “India’s one-stop textile destination for investors, Nandgaon Peth in Amravati, Vidarbha is ready with an all-inclusive textile park providing seven star facilities to make your business successful. Come, invest and take the benefits of our proactive textile policy,” said a notification. It also has other benefits like industrial promotion subsidy, stamp duty and electricity duty exemption incentives by industries department. Chief Minister Devendra Fadnavis laid the foundation stone for starting additional facilities for Textile Park on May 21, 2015. The mega park houses A to Z support structure in textile manufacturing. At present, 500 hectors land is acquired and out of that 100 hectare are allotted. Till date, one project is operational, two are under construction and other projects are in progress.
SOURCE: The KNN India
A group of 71 textile units have come together to implement a comprehensive energy management system (EMS) to monitor energy consumption of each and every machine round-the-clock. The initiative was coordinated by Indian Texpreneurs Federation (ITF) with an aim to continuously evaluate the machine health and operating practices through the hardware and software installed as part of the EMS.
Unique
“What makes the EMS unique is that the usual energy audits, which are occasionally done in a space of a day or two, analyse the total energy consumed vis-a-vis the possible requirement. This conventional method thus cannot locate the micro-level defects that cause energy losses”, Karthik Durai, the ITF executive member and the coordinator of EMS implementation, told The Hindu. Whereas, the EMS ensures that every machine in the said 71 units was fitted with a metre that is capable of reading various parameters like voltage, current, load consumed and other power factors and the data generated been sent to a common server in the unit for monitoring using a software programme, he added. This methodology would help the units which joined the initiative to identify the defects and factors in individual machines that lead to energy losses and take corrective measures accordingly. Another interesting aspect in the venture was that the ITF had placed orders for the metres and software solutions that constitute the EMS with two companies in Chennai and Bengaluru based on the monitoring requirements of the units instead of just buying products what those two manufacturers could offer. “It has been assumed that almost 10 per cent of energy could be saved by the units once the EMS becomes operational because of the round-the-clock monitoring facility,” said Mr. Karthik.
SOURCE: The Hindu
Increase in orders saw a rebound in the manufacturing sector with the Nikkei India Purchasing Manager Index rising to 52.7 in July, a six-month high, from 51.3 in June. The index, prepared on the basis of a survey, revealed that a solid and accelerated increase in new orders led firms to raise production. Moreover, growth of both domestic and foreign demand was reported, with new business from abroad rising at the quickest rate since February, it said. Commenting on the new number, Pollyanna De Lima, Economist at Markit and author of the report, said that though the latest data suggests that the manufacturing upturn gained traction, worries regarding the labour market persist.
Job worries
Continued job shedding highlights the concern felt by businesses towards the outlook, with firms failing to increase workforce numbers significantly since early 2014, she said. “In spite of a further rise in costs, efforts to address competitiveness were evident as selling prices were unchanged during July. Cost inflation was, however, weak in the context of historical data. While this is a generally positive set of data, the upcoming PMI data releases will indicate whether the manufacturing sector can sustain this momentum,” she said. However, the survey also found that despite the uptick in growth, Indian manufacturers continued to cut workforce numbers in July. Nonetheless, the rate of job shedding was only marginal as around 96 per cent of those surveyed reported no change in employment from the levels recorded in the prior month. Purchase prices rose further in July, it said.
Selling prices were unchanged on average, with companies highlighting efforts to secure new business. Growth of new export business accelerated in July and was the most pronounced in five months. They also reported having been able to secure new contracts in tandem with successful price negotiations with clients. There was evidence of building pressures on the capacity of Indian manufacturers’ operations, as outstanding business was accumulated for the second month running and at the quickest pace since March. The new data are based on responses of purchasing executives in over 300 industrial companies.
The manufacturing sector is divided into eight broad categories: Basic Metals, Chemicals and Plastics, Electrical and Optical, Food and Drink, Mechanical Engineering, Textiles and Clothing, Timber and Paper and Transport.Index over 50 reflects expansion, while below 50 reflects a contraction.
SOURCE: The Hindu Business Line
With freight rates falling, the Cochin Steamer Agents Association wants the Exim trade to look at opportunities to improve business. The continuous downward trend in rates has forced many shipping lines to bleed heavily. However, the steamer agents feel that the current situation has brought many advantages for exporters and importers to scale up their performance this year, said Prakash Iyer, the outgoing president of the association. The shipping community has taken various steps to reduce transaction costs so as to have a healthy and lean business model, he said at the 37th annual general meeting. According to Iyer, the prevailing economic situation worldwide has affected the sector badly. The developments in Greece and other Eurozone economies have weakened ocean freight rates. China is also no exception with slower growth and stagnant exports. These factors, he said, have created over-capacity and intense competition and led to cheaper export-import trade. He called upon the stakeholders to make collective efforts in creating a win-win situation to make Kochi one of India’s best ports.
Solid infrastructure
He also urged the shipping fraternity to make the best use of the facilities available in the port, including land, an LNG terminal, RO-RO service, warehouses and godowns to promote and enhance business opportunities. “Proper infrastructure, speedy and transparent actions from government authorities, more ships with better frequency and cost competitiveness will be the prime factors for driving growth,” he added. A leading shipping expert later told BusinessLine that over-capacity, weak demand and aggressive commercial pricing have affected the profitability of many of the lines and the situation is likely to continue throughout the whole year. Besides, the procurement of 12,000 TEU capacity vessels by major lines in anticipation of a demand surge also backfired. This has led to over-capacity and a slump in freight rates. However, he expressed the hope that the focus of major shipping lines, targeting the African, Russian and US markets through discount offers, will push up trade.
SOURCE: The Hindu Business Line
Three associations from textiles, MSME and gems and jewelry sector have asked the government to permit foreign direct investment (FDI) in e-retailing. Textile Association of India, All India MSME Association and Gem and Jewelry Trade Council in a written representation to Commerce and Industry Minister Nirmala Sitharaman have asked to review the policy of opening the business-to-consumer (B2C) ecommerce sector to FDI. "Opening the B2C model will enable manufacturers to sell directly to ecommerce companies who can then use their own inventory and supply chain to sell it directly to the consumers," Textile Association of India (TAI) said in a statement. Currently, 100 per cent FDI is permitted for B2B ecommerce but it is prohibited in B2C.
Ecommerce is emerging as a strong channel driving consumption and growth in the country; it said adding that the platform has enabled manufacturers to access wider distribution and marketing channels at much lesser prices. "They are now able to access a wider national and even global market at the click of a button. This will also give the manufacturers access to a reliable and faster supply chain for the delivery of their products," the statement said. TAI National President Arvind Sinha said that the government should open ecommerce to FDI to enable growth of manufacturing. "The ecommerce platform has enabled many small jewellery designers and manufacturers to scale quickly; and over the next few years, the online jewellery space is estimated to grow by 60-70 per cent annually," Gem and Jewellery Trade Council of India President Shantibhai Patel said.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 50.63 per barrel (bbl) on 03.04.2015. This was lower than the price of US$ 52.98 per bbl on previous publishing day of 31.07.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3238.29 per bbl on 03.04.2015 as compared to Rs 3391.25 per bbl on 31.07.2015. Rupee closed stronger at Rs 63.96 per US$ on 03.08.2015 as against Rs 64.01 per US$ on 31.07.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 03, 2015 (Previous trading day i.e. 31.07.2015) |
Pricing Fortnight for 01.08.2015 (July 14 to July 29, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
50.63 (52.98) |
55.15 |
|
(Rs/bbl |
3238.29 (3391.25) |
3511.95 |
|
|
Exchange Rate |
(Rs/$) |
63.96 (64.01) |
63.68 |
SOURCE: PIB
Connectivity was the central theme of the bilateral meeting between Prime Minister Narendra Modi and Iranian President Hassan Rouhani when they met on the sidelines of the BRICS and SCO summits last month in Ufa, Russia. "In the changed circumstances, I expected our ties to gain greater momentum," he added. India had increased its high-level engagements with Iran since the beginning of this year. It started with National Security Advisor (NSA) Ajit Doval followed by foreign secretary S Jaishankar, who also visited Iran in June. External affairs minister Sushma Swaraj is also expected to undertake a visit there soon.
India can be the biggest gainer from the lifting of trade sanctions on Iran even as both countries are planning to take their bilateral ties to newer heights, a top Iranian official said on Monday. “India can be the first country to benefit from the deal. Iran is uniquely located due to its geographical location. We have 15 neighbouring countries, so it was not possible for the US to isolate us. There exists huge potential for India and Iran to cooperate on energy security. Iran was very helpful during the sanctions, although it did not consider all our demands,” a top Iranian diplomat said in an event organised by ORF on Monday.
The official said connectivity can form the main backbone of bilateral relationship. India is engaged building terminals at Iran’s strategically located Chabahar port, which is expected give the country, access to Afghanistan and other mineral-rich Central Asian nations. The deadline to complete the Chabahar project is December 2016. India had bagged the contract in 2003. India is also building Iran’s railway network, which the official said, will benefit both Iran as well as India, in achieving greater connectivity.
SOURCE: The Business Standard
Continuing the downtrend witnessed in May 2015, the volume of production of man-made fibres (MMF) in Japan declined by 5.2 per cent in June this year to 79,605 tons, compared to the same month of 2014, the Japan Chemical Fibres Association said. In May this year, Japan’s MMF output decreased by 3.4 per cent year-on-year to 83,254 tons. Among man-made fibres, the production of synthetic fibres in June 2015 was 68,021 tons, down 1.9 per cent year-on-year. However, acrylic staple fibre output rose for the second consecutive month by 17.9 per cent to 14,141 tons.
On the other hand, the output of polyester staple fibre fell for the eighth consecutive month to 11,677 tons, showing a drop of 9.8 per cent, while polyester filament production dropped 6.3 per cent to 11,027 tons, down for the seventh month in a row. Nylon filament output too dropped for the sixth consecutive month to 7,183 tons, down 9.3 per cent, the data showed. From January to June 2015, Japan’s MMF production stood at 483,813 tons, registering a decrease of 2.1 per cent year over year. Of this, the output of synthetic fibres fell by 2.1 per cent to 396,729 tons.
SOURCE: Fibre2fashion
Textile production in China is becoming increasingly unprofitable after years of rising wages, higher energy bills and mounting logistical costs, as well as new government quotas on the import of cotton. At the same time, manufacturing costs in the United States are becoming more competitive. In Lancaster County, where Indian Land is located, Keer has found residents desperate for work, even at depressed wages, as well as access to cheap and abundant land and energy and heavily subsidized cotton. Politicians, from the county to the state to the federal government, have raced to ply Keer with grants and tax breaks to bring back manufacturing jobs once thought to be lost forever. The prospect of a sweeping Pacific trade agreement that is led by the United States, and excludes China, is also driving Chinese yarn companies to gain a foothold here, lest they be shut out of the lucrative American market. Keer's $218 million mill spins yarn from raw cotton to sell to textile makers across Asia. While Keer still spins much of its yarn in China, importing the raw cotton from America, that is slowly changing.
"In China, the whole yarn manufacturing industry is losing money," he added. "In America, it's very different." Since Beijing and Washington resumed trade relations in the early 1970s, the United States has mostly run a huge trade deficit, as Americans consumed billions of dollars in cheap electronics, apparel and other Chinese goods. But surging labor and energy costs in China are eroding its competitiveness in manufacturing. According to the Boston Consulting Group, manufacturing wages adjusted for productivity have almost tripled in China over the last decade, to an estimated $12.47 an hour last year from $4.35 an hour in 2004.In the United States, manufacturing wages adjusted for productivity have risen less than 30 per cent since 2004, to $22.32 an hour, according to the consulting firm. And the higher wages for American workers are offset by lower natural gas prices, as well as inexpensive cotton and local tax breaks and subsidies.
Today, for every $1 required to manufacture in the United States, Boston Consulting estimates that it costs 96 cents to manufacture in China. Yarn production costs in China are now 30 per cent higher than in the United States, according to the International Textile Manufacturers Federation. "Everybody believed that China would always be cheaper," said Harold L Sirkin, a senior partner at Boston Consulting. "But things are changing even faster than anyone imagined." Rising costs in China are causing a shift of some types of manufacturing to lower-cost countries like Bangladesh, India and Vietnam. In many cases, the exodus has been led by the Chinese themselves, who have aggressively moved to set up manufacturing bases elsewhere.
In recent years, the United States has started to get more attention from that exodus. From 2000 to 2014, Chinese companies invested $46 billion on new projects and acquisitions in the United States, much of it in the last five years, according to a report published in May by the Rhodium Group, a New York research firm. The Carolinas are now home to at least 20 Chinese manufacturers, including Keer and Sun Fiber, which set up a polyester fiber plant in Richburg, S.C., last year. And in Lancaster County, negotiations are underway with two more textile companies, from Taiwan and the Chinese mainland. "I never thought the Chinese would be the ones bringing textile jobs back," said Keith Tunnell, president of the Lancaster County Economic Development Corporation, who helped put together subsidies for Keer estimated at about $20 million, including infrastructure grants, revenue bonds and tax credits.
Sheng Lu, an apparel and textiles expert at the University of Rhode Island, said the high capital intensity of modern yarn-spinning meant that American mills were becoming increasingly competitive. "Common sense says that the U.S. imports textiles and apparel from China," he said. "Now some of that is reversed." But cutting and sewing clothes, he said, still relies so much on labor that "it's just impossible for the U.S. to be competitive." Investment in American textiles has not come just from China. Last year, the ShriVallabh Pittie Group, a leading textile manufacturer in India, broke ground on a $70 million factory in Sylvania, Ga., the area's first new manufacturing plant in four decades. And Santana Textiles, a large Brazilian denim manufacturer, announced in 2012 that it would open a spinning, dyeing and weaving facility in Edinburg, Tex., though full-scale production has been delayed. "The whole textile world is looking at us," Vinod Pittie, chairman of the ShriVallabh Pittie Group, said at the factory's groundbreaking ceremony, predicting that the success of the venture would draw other entrepreneurs to open plants in Georgia.
SOURCE: The Business Standard
There may finally be some relief for Pakistani textile mills over tax refunds. The country's finance minister Ishaq Dar has assured a delegation of All Pakistan Textile Mills Association (APTMA) that their concerns regarding refund of sales tax would be addressed on priority, according to a report in the Pakistani media. He said the government had already asked for filing of refund claims by August 31 so that the payments are made on priority. The APTMA delegation sought the minister's attention to the levy of surcharge on electricity bills, settlement of sales tax refunds, and removal of anomaly in taxes as well as restraining import of yarn. Dar constituted a committee comprising representatives of APTMA and government officials to further deliberate on these issues. The sales tax refund issue has been a sticking point between the textile mills and the government with the former repeatedly insisting that the delay in the refund leaves the sector hamstrung for funds. The APTMA delegation said that given the right kind of incentives, textile industry would be able to play its due role in enhancing country's foreign exchange earnings.
SOURCE: Fibre2fashion
In view of rising imports of batik textiles, Indonesia's Ministry of Trade has issued a regulation requiring all importers of batik-patterned fabrics to register with the ministry and seek special permit for import. Addressing a press conference in Jakarta last week, trade minister Rachmat Gobel said, “There is a rising trend in imports of batik textiles...so, we need to put an effort to preserve domestic batik industry by blocking batik textile imports.” In January-April 2015, Indonesian batik textile imports reached $34 million, showing a rise of 21.4 per cent over $28 million imports during the corresponding period of last year, a ministry statement said. Explaining the reason behind the issuance of new regulation, Gobel said, “If the imports continue, our domestic industry will not be able to compete. Our grandchildren will never know if batik is Indonesia's cultural heritage—this is the reason for the issuance of the policy.”
According to Gobel, the batik industry in Indonesia employs 1.3 million people, generating sales value of Rp 5.9 trillion ($440 million). As per Notification No. 53/M-DAG/PER/7/2015 issued by the Ministry, every company that will import batik-patterned textiles must register and obtain an Import Approval and recommendation from the Ministry of Industry and the Ministry of Cooperatives and SMEs. Such recommendations must at least contain Tariff/HS code information, the volume of batik textile to be imported, the name of the import destination port, and validity period. In addition, it must be accompanied by information on the product or packaging in the Indonesian language Bahasa Indonesia. The rules, which will come into effect from October this year, also restrict the number of ports through which the companies may ship in. The seaports are Belawan in Medan, North Sumatra; Tanjung Perak in Surabaya, East Java; Soekarno-Hatta in Makassar, South Sulawesi; while the only airport allowed is Soekarno-Hatta in Tangerang, Central Java. In addition, all imports must have prior report from an independent surveyor about the origin of the batik-patterned textile. Indonesia's batik and batik-patterned textile imports increased from $80.8 million in 2013 to $87.1 million in 2014, according to the data from the Ministry of Commerce. In 2009, Unesco had recognised Indonesian batik as a world intangible heritage item.
SOURCE: Fibre2fashion
Malaysian Handicraft Development Corporation (Kraftangan Malaysia) and the British High Commission today announced a collaborative project with famous British fashion icon, Dame Zandra Lindsey Rhodes. Kraftangan Malaysia Design and Research Division senior director, Datuk Mohd Zubair Mohd Zain said the collaborative project named 'The Malaysian Textile Development Programme London' was aimed at promoting and creating business opportunities for Malaysian textiles at an international level. "The Malaysian Textile Development Programme London will culminate in a showcase of Zandara Rhodes's SS16 collection at London Fashion Week which will be held from Sept 18 to 22 this year in the United Kingdom (UK). "The collection will also feature vibrant and exclusive Malaysian batik and songket, which will be transformed into Zandra imaginative and creative day and evening wear clothings," he told a press conference here Monday. Also present was British High Commissioner to Malaysia, Vicki Treadcell.
Mohd Zubair said for the first time, Malaysian textiles would be featured at London Fashion Week alongside other popular and established labels such as Paul Smith, Vivien Westwood and Versus. In the programme, Zandra would be designing a clothing collection under her label, Zandra Rhodes, using Malaysian textiles, supplied by Kraftangan Malaysia and produced by Malaysian textiles producers, he said. He said Zandra would also be conducting a mentorship programme for selected local Malaysian textile producers in which they could learn and study the standards and prerequisite of textile production of an international fashion industry. The Zandra Rhodes collection would also be presented at the Kuala Lumpur Fashion Weekend 2015, an annual event organised by KL Alta Moda Sdn Bhd from Nov 8 to 15 this year at the National Visual Art Gallery, Kuala Lumpur, he said.
SOURCE: The Bernama
Standard & Poor's Ratings Services lowered its outlook on the European Union to negative from stable as it expects that the EU would provide first-loss guarantee support for financing connected to the Juncker investment plan.The ratings service said the outlook also reflects further downward pressure on the average weighted rating on budgetary contributors to the EU.
SOURCE: The Business Standard
Turkey's inflation rate fell to 6.81 per cent in July from 7.2 per cent in June, according to the latest inflation report of the Turkish Central Bank. The Consumer Price Index saw a 0.39 percentage point decline in July from June. Although inflation decreased on lower food prices in the second quarter of 2015, the accompanying depreciation of the Turkish lira caused core inflation to rise, delaying the desired improvement in the inflation outlook. The prospective partial improvement in food prices and the cautious monetary stance will help to minimize the deterioration of the inflation outlook. The bank said global financial markets remained volatile in the second quarter of 2015, which was attributed to the continued divergence among global monetary policies, the uncertainty surrounding the Federal Reserve (Fed)'s normalization plans and developments regarding the Greek debt crisis in the EU. The bank's Overview of Inflation Report July 2015 says that in this period, the volatility in long-term rates has reached quite high levels, especially across advanced economies, which also affected emerging-market rates. Thus, portfolio flows to emerging markets weakened.
The global economic slowdown of 2014 continued into the first quarter of 2015 largely due to emerging economies. Despite signs of economic recovery in Europe, geopolitical tensions continued to restrain Turkey's external demand. The volatility across global markets had implications for the Turkish economy as well, causing fluctuations in financial indicators amid domestic uncertainty. In this period of heightened volatility in long-term interest rates of advanced countries and added interest-rate sensitivity in emerging economies, the interest-rate corridor and the tight liquidity policy implemented by the Central Bank played a major role in shielding the economy against global shocks. Moreover, the bank's structural and cyclical measures supporting foreign exchange liquidity, core liabilities and long term borrowing strengthened the economy's resilience. The growth in economic activity during the first quarter of 2015 was mainly driven by consumption spending. In this period, exports of goods and services increased quarter-on-quarter whereas imports decreased, thus helping net exports contribute positively to quarterly growth. Indicators for the second quarter suggest that economic activity continues to grow moderately. The global economic slowdown and geopolitical problems cause external demand to remain weak while domestic demand provides a moderate contribution to growth. Therefore, economic activity is expected to follow a moderate and gradual growth path in the upcoming period, the report said.
SOURCE: Fibre2fashion
