Singapore: Raises 2011 growth forecast
Singapore raised its growth forecast for 2011 after the island’s economy expanded the most in South East Asia last quarter, sustaining pressure on the central bank to allow the currency to appreciate. GDP will increase 5% to 7% this year, from an earlier forecast of 4% to 6%, the trade minister said. The economy expanded 22.5% in the three months through March from the previous quarter, compared with a preliminary estimate of 23.5%. Singapore’s expansion has fueled a surge in the cost of living that helped propel opposition parties to a record share of the vote in this month’s election. The report spurred a third straight day of gains in the local dollar, bringing the advance against its US counterpart to 13% over the past year as policy makers use currency appreciation to temper inflation. (StarBiz)
Taiwan: GDP expands 6.55%, more than initially estimated
Taiwan’s economy grew more than initially estimated in the first quarter fueled by export gains, adding pressure for higher borrowing costs to contain inflation. GDP climbed 6.55% in the three months through March from a year earlier, compared with a revised 7.13% in the fourth quarter, the statistics bureau said. The preliminary estimate last month was 6.19%, following 2010’s expansion of 10.88%. Taiwan’s central bank meets in June to weigh a fifth straight quarterly rate rise to restrain the cost of living, with home prices remaining near record levels. The government predicts the economy will weather currency gains and trade disruption caused by Japan’s earthquake to expand about 5% this year, and expects inflation to more than double from 2010’s pace. (Bloomberg)
Hong Kong: Jobless rate climbs for first time in 11 months
Hong Kong’s unemployment rate rose for the first time in 11 months as job opportunities failed to keep pace with the number of people looking for work. The jobless rate for the three months through April climbed to 3.5% from a 31-month low of 3.4% in the previous period, the government said. The number compared with the 3.3% median estimate of 14 economists in a Bloomberg News survey. Hong Kong’s government last week raised its forecast for economic expansion this year on “robust” domestic demand that drove first-quarter growth to an annual 7.2%. Accelerating inflation and asset market bubbles pose risks to the economy, Financial Secretary John Tsang said. (Bloomberg)
India: Food prices rise at slowest pace since February 2009
India’s food prices rose at the slowest pace since Feb 2009 as food production climbs toward a record, boosting supplies. An index measuring wholesale prices of agricultural products advanced 7.47% in the week ended 7 May from a year earlier, the commerce ministry said. It gained 7.7 in the previous week. Production of food grains from rice to wheat, lentils and corn is estimated to climb 8% to a record 235.88 million metric tons in the year ending June after a normal monsoon last year, Agriculture Minister Sharad Pawar said. (Bloomberg)
Japan:Falls into recession after economy shrinks 3.7% in 1Q
Japan’s economy shrank more than estimated in the 1Q after the 11 Mar earthquake and tsunami disrupted production and prompted consumers to cut back spending, sending the nation to its third recession in a decade. GDP contract an annualized 3.7% in the three months through March, following a revised 3% drop in the previous quarter, the Cabinet Office said. The median forecast of 23 economists surveyed by Bloomberg News for a 1.9% drop. The March disaster hit an economy already weighed down by years of deflation and subdued consumer spending, and slashed profits at companies including Toyota Motor Corp as factories were shut. (Malaysian Reserve)
UK: Retail sales rise more than forecast on warm weather
UK retail sales rose more than economists forecast in April as warm weather and the extra bank holiday for the Royal Wedding boosted consumer spending. Sales including auto fuel climbed 1.1% from March, when they rose a revised 0.3%, the Office for National Statistics said. The increase was the biggest for an April since 2002 and exceeded the 0.8 percent median forecast of 20 economists in a Bloomberg News survey. From a year earlier, sales increased 2.8%. Britons spent more during two consecutive holiday weekends at the end of April to mark Easter and the wedding of Prince William and Kate Middleton. The Bank of England held its key interest rate at a record low this month on concern that an increase in borrowing costs would dent spending and undermine the recovery, minutes of the decision showed. (Bloomberg)
US: Index of leading economic indicators falls 0.3%
The index of US leading indicators fell in April after nine months of gains, depressed by a pickup in jobless claims that reflects temporary setbacks including auto-plant shutdowns. The Conference Board’s gauge of the outlook for the next three to six months decreased 0.3% after a revised 0.7% gain in March, the New Yorkbased group said. Economists forecast a 0.1% increase, according to the median estimate in a Bloomberg News survey. A jump in firings that moved opposite to increased hiring last month indicated unevenness in the labor market. At the same time, Federal Reserve policy makers noted during their April meeting that job prospects “continued to improve gradually” and economic growth will persist at a “moderate pace.” (Bloomberg)
US: Jobless claims fall more than forecast, reversing jump
Fewer Americans than forecast filed applications for unemployment benefits last week, making it more likely that the surge in April was caused by temporary events rather than a deterioration in the labor market. Jobless claims declined by 29,000 to 409,000 in the week ended 14 May, Labor Department figures showed. The median estimate of economists in a Bloomberg News survey called for a drop to 420,000. The numbers of applications were the lowest in a month. (Bloomberg)
U.S: Previously owned home sales unexpectedly fall in April, pointing to an economy that is struggling to regain momentum following the surge in energy costs. Purchases of existing homes decreased 0.8% to a 5.05 million annual pace in April, the National Association of Realtors said. (Source: Bloomberg)
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