Latest news with #economicRecovery
Free Malaysia Today
13 hours ago
- Business
- Free Malaysia Today
South Korea drafts second extra budget as new leader seeks to spur growth
The South Korean government is expected to submit the extra budget proposal to parliament on June 23. (EPA Images pic) SEOUL : South Korea's new administration proposed today US$14.7 billion in extra government spending to support sluggish domestic demand, as President Lee Jae-myung makes economic recovery his top policy agenda. The supplementary budget plan totalling ₩30.5 trillion announced by the finance ministry includes ₩20.2 trillion (US$14.7 billion) of new spending to spur economic growth and support vulnerable sectors, while it will also make up for ₩10.3 trillion from an expected shortfall in tax revenue. The second extra budget of the year comes two weeks after Lee, who has vowed expansionary fiscal policy, won a snap presidential election on June 3 and less than two months since the first supplementary budget of 13.8 trillion passed in May. 'Economic conditions and difficulties in people's livelihoods are very serious, and this extra budget means government finances will play a little more active role,' vice finance minister Lim Ki-keun told a media briefing. South Korea's central bank last month slashed its economic growth forecast for this year to 0.8% from 1.5%, citing heightened uncertainty over US tariffs, as it lowered interest rates for a fourth time in its current easing cycle and signaled more rate cuts. Asia's fourth-largest economy unexpectedly contracted in the first quarter amid US President Donald Trump's sweeping tariffs and domestic political turmoil sparked by former President Yoon Suk Yeol's martial law decree in December. The biggest spending will be Lee's flagship policy of a universal cash handout scheme for consumers, providing ₩150,000-500,000 in vouchers to every citizen and totalling ₩10.3 trillion. Lee was one of the first to introduce a cash handout scheme in South Korea when he was mayor of Seongnam City, which was adopted nationwide several times during the COVID-19 pandemic under the previous liberal administration of Moon Jae-in, even as critics questioned the effectiveness of the policy. Other spending plans include financial support for the construction sector, investment in artificial intelligence as well as small and medium-sized enterprises, and debt restructuring programmes for small businesses. Out of the combined total of ₩30.5 trillion, ₩19.8 trillion will be financed by issuing additional treasury bonds, according to the finance ministry. The second extra budget will raise the country's fiscal deficit to 4.2% of gross domestic product (GDP) this year, up from the previous estimate of 3.3% after the first extra budget, and government debt to 49.0% of GDP, from 48.4%. The government will submit the proposal to parliament, controlled by the left-leaning ruling Democratic Party, on June 23.
News.com.au
a day ago
- Business
- News.com.au
Boosting productivity will strengthen the Australian private sector
HSBC Australia's Chief Economist Paul Bloxham emphasises the need to address productivity to boost the 'What we need is the private sector to start to revive and to recover,' Mr Bloxham told Sky News host Ross Greenwood. 'How do you get the private sector to pick up … part of it's going to be helped along by interest rates coming down a bit. 'Unless we lift productivity … competition, tax reform, the regulatory environment, all the things that will help to lift the private sector.'
Reuters
3 days ago
- Business
- Reuters
Japan exports post first drop in 8 months as US tariffs hit autos
TOKYO, June 18 (Reuters) - Japan's exports fell for the first time in eight months in May, data showed on Wednesday, indicating that sweeping U.S. tariffs were threatening the country's fragile economic recovery. Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump have yet to reach a trade deal. Tokyo is scrambling to find ways to get Washington to exempt its automakers from 25% automobile industry-specific tariffs, which are dealing a heavy blow to the country's manufacturing sector. It also faces a 24% 'reciprocal' tariff rate starting in July 9 unless it can negotiate a deal with Washington. Total exports by value dropped 1.7% year-on-year in May, data showed, smaller than a median market forecast for a 3.8% decrease and following a 2% rise in April. Exports to the United States plunged 11.1% last month from a year earlier, while those to China were down 8.8%, the data showed. The tariff threat had driven companies in Japan and other major Asian exporters to ramp up shipments earlier this year, inflating levels of U.S.-bound exports during that period. The data showed imports dropped 7.7% in May from a year earlier, compared with market forecasts for a 6.7% decrease. As a result, Japan ran a trade deficit of 637.6 billion yen ($4.39 billion) last month, compared with the forecast of a deficit of 892.9 billion yen. The hit from U.S. tariffs could derail Japan's lacklustre economic recovery. Subdued private consumption already caused the world's fourth-largest economy to shrink in January-March, the first contraction in a year. They also complicate the Bank of Japan's task of raising still-low interest rates and reducing a balance sheet that has ballooned to roughly the size of Japan's economy. The BOJ kept interest rates steady on Tuesday and decided to decelerate the pace of its balance sheet drawdown next year, signalling its preference to move cautiously in removing remnants of its massive, decade-long stimulus. According to an estimate by the Japan Research Institute, if all the threatened tariff measures against Japan were to take effect, U.S.-bound exports will fall by 20-30%. Some economists say those duties could shave around 1 percentage points of the nation's gross domestic product. Japan exported 21 trillion yen worth of goods to the United States last year, with automobiles representing roughly 28% of the total. . ($1 = 145.3400 yen)
Reuters
4 days ago
- Business
- Reuters
Fitch raises Ghana's ratings to 'B-', pushing it closer to investment grade
June 16 (Reuters) - Ratings agency Fitch upgraded Ghana's ratings to "B-" from "restricted default" on Monday, saying the country has normalized relations with a significant majority of its external commercial creditors. The gold producing nation is recovering from its most severe economic crisis in decades, after facing challenges in its critical cocoa and gold industries which forced the government to restructure its debt. "We expect Ghana will fully complete its external debt restructuring by end-2025," Fitch said in its report. Ghana's finance minister, Cassiel Ato Forson, announced in March that the new government will make steep spending cuts this year to recover the economy. Rival agency S&P Ratings had revised Ghana's foreign currency issuer rating to "CCC+" from "selective default" in May, citing improvement in creditworthiness as it nears completion of its debt restructuring. President John Dramani Mahama, who took office in January, has vowed to boost the economy and create jobs. Fitch also assigned "stable" outlook to the country.
Zawya
10-06-2025
- Business
- Zawya
Dubai conglomerate Al Habtoor eyes investments in Syria
Dubai-based Al Habtoor Group is looking to invest in Syria as the country moves forward with reconstruction and economic recovery. The company's founding chairman, Khalaf Ahmad Al Habtoor, confirmed on Monday his plans to visit Syria in the coming days to explore potential investment and cooperation opportunities. The UAE entrepreneur will lead a high-level delegation of senior executives from Al Habtoor Group, a diversified business with interests in the hospitality, automotive, car leasing, real estate, education and publishing sectors. 'Syria is a country rich in culture, history and capable people. We believe in its future potential and are eager to play a role in its revival through meaningful projects that generate employment,' said Al Habtoor. He said the company looks to Syria 'with great confidence,' citing the energy and resilience of its citizens. 'As an Arab group with regional roots, we consider it both a moral and economic responsibility to stand as a partner in rebuilding stable and thriving societies.' Prior to the businessman's visit, a team of senior officials from the company will arrive in Damascus to conduct preliminary exploratory studies and meet with relevant authorities. (Writing by Cleofe Maceda; editing by Seban Scaria)
