Asia

Kate Allen

US economic growth has been revised upwards to 2.5 per cent. A pretty impressive rate, given that the UK is currently stagnating at just 0.7 per cent. On the other hand, it looks less impressive when compared to China’s booming 7.6 per cent (even though, for China, that’s a slowdown).

But wait a minute. Economists across the land are howling in pain at this jumble of misinterpretation. These rates aren’t comparable at all – because they’re all measuring different things. Read more

Kate Allen

The rupee is tumbling once more – and for those with long memories, this all looks rather familiar.

In 1991 investors deserted India as turbulence descended: prime minister Rajiv Gandhi was assassinated and what’s now known as the Balance of Payments Crisis gripped the country.

The episode was enough to put a serious dent in the country’s booming economic growth.

India GDP

What caused it? Read more

Kate Allen

New dormitories for Chinese workers may appear to have little to do with the deaths of hundreds of textile workers in Bangladesh. But in today’s globally interconnected economy one may be the fabled butterfly to the other’s subsequent hurricane.

Chinese workers’ demands for better conditions and higher pay have been driving manufacturers to seek cheaper alternatives. That has brought many textile firms to Bangladesh, which is reputed to have the lowest textile industry wages in the world – and they have certainly been increasing much more slowly than those in China. Read more

Valentina Romei

Chinese exports grew less than expected in November, fueling fears of a further economic slowdown. But exports from western inland Chinese regions have never grown so fast as in 2012, beating export growth rates of the rich industrial coastal regions.

Chinese export growth declined to 2.9 per cent in November from 11.6 per cent in October. On a rolling 12-month sum exports grew at an annual rate of 7.9 per cent in November, a figure well below the more than 30 per cent growth of the late 2010 and early 2011 and marks a 28-month record low. But not all regions in China experienced the same slowdown.

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Valentina Romei

Tension between China and Japan over the East China Sea is threatening to disrupt the strong trade relationship between the two countries.

In July Japan exported a higher value of goods to China than to Europe or to north America. It also imported a higher value of goods from China than from north America and Europe combined, and about the same amount as from the rest of Asia combined. Read more

Kate Allen

Angela Merkel has been making much of Germany’s predominant role in the EU’s trade relationship with China – the oft-touted ‘special relationship’. The EU overtook Japan as China’s main source of imports back in 2011, and Germany is the biggest contributor to that. But Europe’s elevated status is not due to its own export growth; rather, it is due to Japan’s continuing performance slide.

Chinese imports

Source: IMF/Haver Analytics

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