China’s property slowdown deepens as prices fall; Japan’s economy hit by supply chain woes – business live | Business

The skyline of Tokyo is seen from the city’s Olympic Stadium in August

The skyline of Tokyo is seen from town’s Olympic Stadium in August {Photograph}: Fabrizio Bensch/Reuters

Good morning, and welcome to our rolling protection of the world economy, the monetary markets, the eurozone and business.

The Covid-19 pandemic and supply chain disruption is constant to hamper the worldwide financial restoration, with Japan and Thailand’s economies each contracting within the final quarter.

Japan’s economy shrank by 0.8% within the third quarter of this yr, new figures present, a deeper fall than anticipated as world supply disruptions hit exports and business spending plans.

The rise in Covid-19 circumstances this summer season, which led to emergency comfortable lockdown measures in Tokyo and different areas, additionally harm the restoration. Personal consumption fell 1.1% through the quarter.

Capital expenditure by corporations slumped by 3.8%, with some producers such as carmakers struggling to acquire uncooked supplies and components.

The contraction means that the world’s third-largest economy is being hit tougher than anticipated by manufacturing bottlenecks, which proceed to grip the worldwide economy.

Economists had solely anticipated Japan’s GDP to fall by 0.2% through the quarter.

As Takeshi Minami, chief economist at Norinchukin Analysis Institute, put it

“The contraction was far larger than anticipated resulting from supply-chain constraints, which hit automotive output and capital spending onerous.”

Economists predict that Japan’s economy will return to progress this quarter. However the sharp fall in Q3 GDP may additionally spur prime minister Fumio Kishida to unveil a major stimulus package deal quickly.

Alvin Tan of RBC Capital Markets says:

Japan’s Q3 GDP was weaker-than-expected at -3% q/q annualised, which ought to present added impetus for the proposed fiscal stimulus package deal. A package deal of over ¥40 trillion is reportedly being thought of.

Danske Financial institution Analysis

🇯🇵🤕 If anyone was doubtful how onerous hit the Japanese economy has been by #COVID19 look no additional than this morning’s GDP figures and this chart.

Japan is without doubt one of the international locations with the most important exercise hole to each pre corona-levels and pre disaster pattern.

November 15, 2021

Christophe Barraud🛢

🇯🇵 #Japan’s Shrinking Economy Fuels Expectation for Kishida Stimulus – Bloomberg
*GDP slips 3% for fifth contraction in final eight quarters.

November 15, 2021

Thailand’s economy has additionally been hit by Covid-19 curbs this summer season, which hit its tourism sector.

Thailand’s GDP shrank by 1.1% through the third quarter of the yr – which is definitely relatively higher than the two.5% contraction which economists had been bracing for. It left the economy 0.3% smaller than a yr in the past.

Exports within the third quarter grew 15.7% from a yr earlier, however personal consumption fall by 3.2%, hit by pandemic restrictions.


Thailand GDP got here out and it crushed expectations by DECLINING lower than anticipated by -0.3percentYoY.

Up to now, listed here are the Q3 figures in Asia (%YoY) & I am going to give u a fast quiz too:

Philippines 7.1
China 4.9
Indonesia 3.5
Japan 1.4
Thailand -0.3
Malaysia -4.5
Vietnam -6.2

Who’s WORST?

November 15, 2021

Once more, there are hopes of a restoration in This autumn, as Covid-19 circumstances fall, restrictions are being lifted and the vaccine rollout accelerates.

Danucha Pichayanan, the top of Thailand’s Nationwide Financial and Social Improvement Council, advised a information convention that financial indicators pointed to bettering situations – and that home consumption, public spending and tourism will drive progress in 2022.

“If there are not any extra outbreaks, the fourth quarter will certainly be higher than the third.

Additionally developing at the moment

The Financial institution of England governor, Andrew Bailey, is testifying to MPs on the Treasury Committee this afternoon, together with chief economist Huw Capsule,and exterior MPC members Michael Saunders and Dr Catherine Mann.

They’ll talk about the Financial institution’s choice to depart rates of interest on maintain this month, and its forecast for inflation to hit 5% subsequent yr, and are more likely to additionally cowl the UK’s labour market, worth and wage rises, and the outlook for the economy.

We’ll additionally hear from European Central Financial institution chief Christine Lagarde, when she seems earlier than MEPs on the financial and financial affairs committee this morning

European markets are anticipated to open barely decrease, with nervousness over inflation weighing on shares after US client confidence hit a 10-year low on Friday.


European Opening Calls:#FTSE 7338 -0.13%#DAX 16090 -0.02%#CAC 7084 -0.11%#AEX 820 -0.02%#MIB 27717 -0.05%#IBEX 9062 -0.21%#OMX 2359 -0.28%#SMI 12487 -0.24%#STOXX 4369 -0.04%#IGOpeningCall

November 15, 2021

The agenda

  • 10am GMT: Eurozone commerce steadiness for September
  • 10am GMT: ECB president Christine Lagarde testifies to the European Parliament’s Committee on Financial and Financial Affairs.
  • 2.30pm GMT: Financial institution of England policymakers testify to the Treasury Committee

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