20100427 0935 Global Economic News.

The number of US building permits issued in March was revised down to an increase of up 6.8% to a 680,000 unit annual rate. Permits issued were originally reported up 7.5% to a 685,000 unit rate. (Xinhua)

Japan’s corporate service prices fell at the slowest pace in more than a year in Mar 10, backing up central bank policy makers’ views that deflationary pressure is beginning to ease. The prices firms pay for services such as transportation and advertisements slid 1.1% yoy, the smallest decline since Nov 08. (Bloomberg)

Singapore’s industrial production grew at a faster pace than analysts estimated, bolstering an economic recovery that has prompted the central bank to allow the currency to strengthen. Output at factories, which accounts for about a quarter of Singapore’s economy, surged 43% yoy in Mar 10 after a revised 17.9% gain the previous month. The median forecast surveyed was for a 30.3% gain. (Bloomberg)

South Korea’s economic growth accelerated more than expected in 1Q10 as the global recovery spurred demand for the nation’s electronics products and consumer spending advanced. Gross domestic product increased 1.8% qoq in 1Q (+0.2% in 4Q09), more than the 1.5% median forecast in a survey. On a yoy basis, GDP gained 7.8%. (Bloomberg)

Reserve Bank of India Governor Duvvuri Subbarao said faster inflation is a “big worry” for the country’s economy and the central bank plans to remove monetary stimulus in a gradual manner to ensure sustained growth. While the tightening of monetary policy may be “anti-growth” in the short term, it is “certainly in the best interest” of the economy in the longer term, Subbarao said. (Bloomberg)

German Chancellor Angela Merkel hit the campaign trail with a warning to Greece and the rest of the euro region that a bailout of the debt-stricken nation isn’t a done deal. “I’ve said for weeks that Greece must do its homework first,” Merkel said. She said that while Germany is prepared to release funds for debt-stricken Greece, “first I want to see the program.” (Bloomberg)

Thailand’s economic growth this year could be cut by 0.64% pt (a preliminary estimate) if anti-government protests go on for up to 3 months. Prime Minister Abhisit Vejjajiva has asked the state planning agency, the National Economic and Social Development Board (NESDB), to look into the impact. It releases the new growth forecasts on Thursday (vs. January’s forecast for a 3.3%-5.3% growth in 2010). The Bank of Thailand said yesterday that bad loans at Thai Banks could rise if the political crisis is prolonged. (Financial Daily)

The Indonesian government proposed to increase the electricity subsidy in this year’s state budget to IDR52tr, Darwin Saleh, the nation’s energy minister, said. (Bloomberg)