All articles tagged with #domestic demand
Originally Published 12 days ago — by Yahoo Finance
China's factory activity unexpectedly grew in December, ending an eight-month decline, driven by pre-holiday stockpiling and domestic demand, but overall economic challenges such as property downturn and weak exports persist, indicating a short-lived recovery rather than a sustained upturn.
Originally Published 2 months ago — by Reuters
China's exports declined by 1.1% in October, the worst since February, mainly due to the fading effect of front-loading US-bound goods before tariffs increased, highlighting the country's reliance on US demand and the impact of global economic slowdown. Despite a temporary trade truce, US tariffs remain high, and domestic demand is weak, prompting China to focus on boosting internal consumption and diversifying trade relations.
Originally Published 3 months ago — by CNBC
China's official manufacturing PMI for September showed a smaller contraction than expected at 49.8, the strongest since March, amid efforts to address industrial overcapacity and sluggish domestic demand, while private surveys indicate a more optimistic outlook. The overall economic activity remains in contraction territory, with upcoming Politburo meetings expected to influence future policy responses.
Originally Published 4 months ago — by Reuters
China's manufacturing activity has contracted for the fifth consecutive month in August, with the official PMI at 49.4, indicating ongoing economic slowdown amid trade uncertainties, sluggish domestic demand, and external pressures like U.S. tariffs and a property market downturn. Meanwhile, the non-manufacturing sector shows slight expansion, but overall economic momentum remains weak, prompting calls for more stimulus measures.
Originally Published 5 months ago — by Reuters
China's July factory-gate prices fell more than expected, with PPI down 3.6% year-on-year and CPI unchanged, highlighting ongoing deflation concerns due to sluggish domestic demand, trade uncertainties, and structural economic challenges. Despite some signs of easing deflationary pressures, analysts remain cautious about the sustainability of recovery without demand-side stimulus and reforms.
Originally Published 1 year ago — by Financial Times
China's Communist Party, led by Xi Jinping, is shifting its economic focus from technology and industry investment to boosting domestic consumption amid concerns over economic growth. The recent Central Economic Work Conference emphasized the need for "vigorous" efforts to enhance domestic demand, with plans to expand the budget deficit to fund these initiatives. While details are sparse, potential measures include increased health insurance coverage and education funding. Economists suggest that fiscal policy will play a significant role in stabilizing growth, though challenges like the housing market crisis remain unaddressed.
Originally Published 1 year ago — by The Moscow Times
Russia will ban gasoline exports for six months starting March 1 to address rising domestic demand, particularly due to summer vacation travel, spring fieldwork, and planned refinery repairs. The ban aims to stabilize domestic prices and follows previous restrictions imposed between September and November. Exemptions include members of the Eurasian Economic Union, as well as Uzbekistan, Mongolia, and Georgia’s separatist regions. This move comes after Russia increased gasoline exports to new buyers following bans by the US, EU, and G7 countries over the Ukraine invasion.
Originally Published 1 year ago — by The Straits Times
Japan's economy unexpectedly slipped into recession, shrinking for a second consecutive quarter due to weak domestic demand, prompting doubts about the Bank of Japan's plan to end its negative interest rate policy. The country's GDP shrank at an annualised pace of 0.4 per cent in the final quarter of 2023, leading to Japan losing its spot as the world's third-largest economy to Germany. The contraction complicates the likelihood of a rate hike, with household and business spending declining amid persistent inflation, while external demand remains a key source of support for growth.
Originally Published 1 year ago — by CNBC
Japan's economy unexpectedly slipped into a technical recession as it contracted 0.4% in the October-December period, driven by high inflation crimping domestic demand and private consumption. This complicates the case for interest rate normalization and fiscal policy support, and also led to Germany overtaking Japan as the third-largest economy in the world. The weaker-than-expected GDP print suggests that high inflation is hurting domestic consumption, potentially strengthening the case for looser monetary policy for much longer.
Originally Published 2 years ago — by CNBC
China's top leaders have pledged to boost domestic demand, prioritize strategic sectors, and address the country's real estate crisis in an effort to achieve economic stability and recovery in 2024. The leaders acknowledged the challenges of insufficient demand, overcapacity in certain industries, weak social expectations, and hidden risks. They emphasized the importance of high-quality development, outlining a nine-point plan that includes technological innovation, boosting domestic consumption, attracting high-level foreign investment, and revitalizing agriculture. The leaders also addressed issues such as declining fertility rates, unemployment, and the resilience of domestic supply chains. They pledged to support private enterprises, foster innovation in science and technology, and implement proactive fiscal policies and prudent monetary action.
Originally Published 2 years ago — by Reuters
China's Politburo, a top decision-making body, has pledged to spur domestic demand and consolidate and enhance the economic recovery in 2024. The government plans to implement a proactive fiscal policy and a prudent monetary policy while deepening reforms in key areas. Efforts will be made to expand domestic demand and form a virtuous cycle of consumption and investment. China's growth is expected to hit the government's target of around 5% this year, but the recovery remains uneven. Analysts expect more stimulus measures, with fiscal policy taking a leading role in 2024. The government advisers will recommend a steady growth target and increased stimulus for the policymakers' meeting.
Originally Published 2 years ago — by CNBC
China's ruling Communist Party has vowed to "moderately strengthen" fiscal policy to stimulate economic recovery and bolster domestic demand. The country's Politburo, chaired by President Xi Jinping, emphasized the need for proactive fiscal policies and prudent monetary policies in 2024. China's economy has faced challenges due to a slowdown in global growth, a struggling property market, and geopolitical tensions. While there has been a surprise pickup in exports, economists caution that policy support focused solely on the supply side may not be sufficient for sustained results.
Originally Published 2 years ago — by Reuters
China's industrial profits continued to rise for a second consecutive month in September, with a year-on-year increase of 11.9%, following a surprise gain of 17.2% in August. The recovery in profits is attributed to supportive policy measures and stronger industrial and consumption activity. Although profits for the first nine months of the year were down 9% compared to the previous year, the decline narrowed from the first eight months. The improvement in industrial profits is expected to continue in the coming months, driven by domestic macro pump-priming. However, the property sector's weakness remains a drag on the economy and corporate earnings. State-owned firms saw the biggest decline in earnings, while private-sector companies recorded a smaller slide.
Originally Published 2 years ago — by DW (English)
China has officially entered a period of deflation for the first time in two years, with the consumer price index dropping 0.3% year-on-year in July. The country's post-pandemic recovery has stalled, as reflected in the tenth consecutive month of decline in the product price index. Reduced consumption and weakened domestic demand have led to a sharp decline in imports and exports, posing challenges for the Chinese economy. Authorities are implementing policy measures to address the situation, but face "new difficulties and challenges."
Originally Published 2 years ago — by South China Morning Post
China's consumer prices have fallen by 0.3% in July, marking the first decline since 2021, raising concerns about deflation and adding to worries about weak domestic demand and economic uncertainty. The producer price index also fell by 4.4% last month, further heightening deflation risks and weighing on the country's economic recovery.