China’s consumer prices edged up 0.1% in March compared to a year ago but factory gate deflation persisted in March, official data showed. Goldman Sachs raised its forecast for China’s economic growth for 2024 to 5% from the previous forecast of 4.8% on the country’s robust manufacturing growth. China’s auto sales rose 9.9% year on year in March, data from the China Association of Automobile Manufactures showed on Wednesday. China’s Ministry of Finance said it was regrettable that Fitch Ratings has downgraded the country’s sovereign credit rating outlook.
Global trade is expected to pick up gradually this year following a contraction in 2023 that was driven by the lingering effects of high energy prices and inflation, said the World Trade Organisation. Developing Asia is to grow 4.9% this year and next year, said the Asian Development Bank in its latest Asian Development Outlook. Consumer prices in the U.S. rose 3.5% in March, more than expected. The World Bank cut its 2024 growth forecast for Latin America and the Caribbean saying the region’s growth continues to lag behind other parts of the world.
China’s inflation rises 0.1% in March
China’s consumer prices edged up 0.1% in March compared to a year ago, official data showed.
Consumer prices dropped 1% in March from February according to data from the National Bureau of Statistics showed.
Core inflation, which excludes volatile food and energy prices, rose 0.6% in March from a year ago.
China’s factory gate deflation continues
China’s factory gate deflation persisted in March with producer price index (PPI) fell 2.8% year on year in March.
The PPI fell 0.1% on a monthly basis.
The prices for production materials dropped 3.5% last month on a yearly basis while clothing prices rose 0.3%.
Goldman Sachs raises China 2024 growth outlook
Goldman Sachs raised its forecast for China’s economic growth for 2024 on the country’s robust manufacturing growth.
The investment bank raised China’s GDP growth this year to 5% from its previous forecast of 4.8%.
"Consistent with the manufacturing strength, our inventory tracker shows a material inventory build in Q1, though it is less dramatic than the one a year ago during China's rapid reopening," the Goldman Sachs note said.
China’s auto sales grow 9.9% in March
China’s auto sales rose 9.9% year on year in March, data from the China Association of Automobile Manufactures showed on Wednesday.
The country’s auto sales grew 10.6% in the first quarter of the year from the same period last year.
The sales of new-energy vehicles (NEVs) rose 31.8% in the first quarter from a year earlier.
The auto exports rose 33.2% year on year, according to the data.
China says Fitch Ratings outlook downgrade "regrettable"
China’s Ministry of Finance said it was regrettable that Fitch Ratings has downgraded the country’s sovereign credit rating outlook.
On Wednesday Fitch cut its outlook on China’s sovereign credit rating to negative citing risks to public finances.
Fitch's rating system has failed to effectively reflect the positive effects of China's fiscal policies on boosting economic growth and stabilizing the macro leverage ratio in a forward-looking manner, the ministry said in a statement.
Global trade to rebound this year, WTO
Global trade is expected to pick up gradually this year following a contraction in 2023 that was driven by the lingering effects of high energy prices and inflation, said the World Trade Organisation (WTO).
In its latest Global Trade Outlook and Statistics report, the WTO forecast world trade volume would increase 2.6% in 2024 and 3.3% in 2025 after falling 1.2% in 2023.
A recovery of demand for tradable goods in 2024 is already evident, with indices of new export orders pointing to improving conditions for trade at the start of the year.
Developing Asia to grow 4.9% in 2024, ADB
Developing Asia is to grow 4.9% this year and next year, said the Asian Development Bank in its latest Asian Development Outlook.
"Growth in developing Asia will remain robust this year, in spite of uncertainty in the external environment," ADB Chief Economist Albert Park said in the Asian Development Outlook report.
Stronger growth in South and Southeast Asia will offset slower growth in other subregions.
China’s economy is projected to grow 4.8% this year and 4.5% next year.
US consumer prices rise 3.5% in March
Consumer prices in the U.S. rose more than expected in March.
The consumer price index rose 3.5% in March from a year earlier.
Inflation rose 0.4% on a monthly basis.
Core inflation which excludes volatile food and energy prices rose 3.8% year on year.
The prices of energy and rental housing are the leading factors for the price increase.
World Bank cuts Latam 2024 growth forecast
The World Bank cut its 2024 growth forecast for Latin America and the Caribbean saying the region’s growth continues to lag behind other parts of the world.
The World Bank forecasts that regional GDP will expand by 1.6 percent in 2024. GDP growth of 2.7 and 2.6 are expected for 2025 and 2026. These rates are the lowest compared to all other regions in the world, and insufficient to drive prosperity, according to the World Bank’s latest report.
Factors driving these growth numbers include low levels of investment and domestic consumption, elevated interest rates and high fiscal deficits, declining commodity prices, and uncertainty in the prospects of important partners such as the U.S., China, Europe and other G7 countries.
Canada’s central bank lifts 2024 growth forecast
Canada’s central bank lifted its growth forecast for 2024 citing a strong increase in population and a recovery in household spending.
The Bank of Canada forecast that Canada’s GDP is to grow 1.5% in 2024, up from its previous forecast of 0.8%.
The country’s inflation slowed to 2.8% in February. The central bank expected inflation to reach its target rate of 2% in 2025.
