Imports from Asian Pacific countries accounted for more than 20 per cent of total Canadian imports in 2009. An article from the Asia Pacific Foundation of Canada notes that this is a decrease from the previous year. However, the foundation attributes this to the decrease of imports from China and Japan. This in turn can also be linked to the global credit crunch. Nevertheless, China was by far the leader with 10.9 per cent of Canada’s total imports. Japan and South Korea rounded off the top three spots with 3.4 per cent and 1.6 per cent, respectively.
East Asian countries garnered 15.9 per cent of Canada’s imports. This is a bit higher than the imports from Europe with 15.6 per cent in 2009. To see where China and the 16 other counties fits, take a look at the article from the Foundation.
The World Bank revised upwards its forecast on the global economic growth for 2010 to 2.7% from the 2% announced in June 2009, but the World Bank also warned that the global economic recovery may lose momentum in the second half of 2010 given that the impact of fiscal stimulus wanes, credit conditions remains tight and high unemployment persists.
In Hong Kong, seasonally adjusted unemployment rate came down further to 4.9% in October-December 2009. Sentiments among the large private businesses also improved further, with general optimism across all sectors surveyed as indicated by the latest Quarterly Business Tendency Survey. Meanwhile, Hong Kong was named the world’s freest economy for the 16th consecutive year by the Heritage Foundation.
In Asia-Pacific, Singapore’s non-oil domestic exports jumped for the second straight month in December, by 26% over a year earlier, amid rising global demand for its electronic and pharmaceutical output. Thanks to the strong Chinese demand, the value of Taiwan’s export orders surged by a record 52.6% year-on-year in December 2009.
A 3.3 per cent rise in Hong Kong’s gross domestic product (GDP) from April to June shows that the recession, from them, is over. This rise is a welcomed change from the first quarter, as January to March posted 4.3 per cent decline. In fact, due to the global credit crisis, Hong Kong’s economy has posted negative growth since the second quarter of 2008.
Even though the rise in GDP is a good sign, it should be noted that for 2009, Hong Kong’s economy is still expected to decline by 3.5 to 4.5 per cent. Overall, this is better than the government previously forecasted 5.5 to 6.5 per cent drop for the year.
Hong Kong is not the first to step out from under the recessionary clouds however. Singapore, Japan, France, and Germany have also announced they are experiencing growth as well.
To find out more about Hong Kong’s recovery, read these articles from the BBC and Forbes.com. As well you might be interested in Europe’s climb in this article also from the BBC.
Photo by Tearsandrain
Just a few short hours after the last two American Presidents discussed Canada-US relations at a ground-breaking event at the Toronto Convention Centre, the Prime Minister of Great Britain, Robert Brown, appears in the Wall Street Journal with an opinion piece on reducing trade barriers.
Prime Minister Brown makes a irrefutable argument against protectionism.
At Friday’s event with US Presidents Bill Clinton and George Bush, there was very little discussion about the recent protectionist measures south of the Canada-US border. Both Presidents commented on the special nature of the US-Canadian relationship, but the economy and current trade concerns were barely touched. Read a National Post article on the event here.
One interesting development, with today as the day when all people entering the US by land or sea will require a passport, enhanced driver’s license or a NEXUS card, neither former President appeared to know of the new security requirement!
Photo courtesy: National Post
The Baltic Dry Index may not be common knowledge but it is an important early indicator of possible signs of recovery in global trade according to Globe and Mail reporter Brent Jang. The index surveys the price of transporting raw materials by sea.
If the latest rally – four straight days – has staying power, then global trade appears headed for a modest improvement in the second half of 2009, and the shipping industry is poised to ride China’s economic stimulus package and recover from what’s still expected to be a turbulent first half.
Despite some contradictory signs of whether the ocean shipping sector has bottomed, there are enough bright spots to clear the way for a gradual rebound in everything from bulk commodity markets to dismantling old ships to building new ones, experts say.
A decline in commodity prices has coincided with dwindling stockpiles to spur China to renew selected purchases, helped by loosening short-term credit, said Oslo-based shipbroker RS Platou.
“This has especially been the case of iron ore, where Chinese steel mills have been very active securing high-quality ore at very attractive prices. In addition, exports of grains, soybeans and fertilizers have all increased in the same period of time,” said Platou’s analysis, titled A Sustainable Improvement?
Read the entire story.
What do you think? Is this an early sign of recovery? What are your experiences?
Share your thoughts with other Ventures readers by posting a comment.
Without exception, the global economic crisis is hurting every economy. Our Financial Secretary Mr. John Tsang announced in his Budget yesterday his strategies to revitalize HK’s economy. I am pleased to highlight some of the measures that may be of interest to you and/or may generate opportunities for your companies.
Budget Highlights
HK Economic Performance and Outlook – Affected by the global downturn, HK’s GDP grew by 2.5% in 2008 and unemployment rate has risen to 4.6%.
A two to three per cent decrease in GDP is expected for 2009. For the medium term, the average growth rate is estimated at 3.5% in real terms for the period 2010-13.
Despite the downturn, HK’s economic fundamentals remain strong. We have a sizeable current account surplus that amounts to 13% of GDP, a strong net external international investment position, a sharp increase in productivity in the past few years, etc. – which are all clear indicators of the underlying strength of HK. Continue reading ‘Message from Director of HKETO on Hong Kong 2009 Budget’
A positive economist might be an oxymoron, especially nowadays, but not according to Mark Mullins, Executive Director of the Fraser Institute, an international education and research organization. Mullins was the keynote speaker at “Weathering Market Turmoil,” an event co-hosted by the Institute and the Hong Kong Canada Business Association. Mullins gave an overview of world markets, starting 300 years ago in the 1700s all the way to today’s crisis. While not saying that he can predict when the world’s economy will turn around, Mullins did note some areas of encouragement. He highlighted that:
- Stock markets are cyclical by nature.
- Stock markets have shown signs of stabilizing since November.
- There is a need to watch for stock markets to hit bottom as they do so about four to six months before an upturn.
- Like the stock markets, interest rates have been volatile since late 2007, but are also leveling of and can be an indication of stability. Rates are still decreasing, but there is less “stress”, as he puts it.
- Interest rates and stock markets and linked and their stabilization are a positive sign.
His presentation was broken down into five main sections: lessons of history; market outlook; economic outlook; policy and politics; and implications for China. For the latter, Mullins notes that China has promptly and aggressively taken steps to battle the financial crisis, which he believes lays a good foundation for future growth. He also outlined from the Institute’s Economic Freedom of the World: 2008 Annual Report, the progress that China has made and needs to make, specifically in regards to their size of government, legal structure of property rights, access to sound money, freedom to trade, and regulation.
Photo by ArtemFinland
Not unlike in North America, the economy is first and foremost on the minds of Hong Kong residents and officials. Last Thursday in the Legislative council Chief Executive Donald Tsang Yam-kuen used concerns about the economy to confirm delays in consultation regarding electoral reform. He explained that the jobless rate is expected to rise above 4%. Low by North American standards, the unemployment rate in Hong Kong generally hovers between 2.5 and 3%.
Consumer confidence has been shaken, banks have become more reticent to lend, and businesses have been constrained by the inability to obtain credit from the banks.
The Hong Kong government has put many measures in place to help reduce the impact of the economic tsunami, as it is called in this part of the world. Programs aimed at businesses are available to all registered Hong Kong businesses, even if they are subsidiaries of offshore companies, for instance from Canada. Continue reading ‘Concerns about economy inspire business support in Hong Kong’
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