China’s exports in US dollar terms fell at an annualized rate of 7.5% in May, down from a 8.5% growth in April. Imports contracted 4.5%, slower than the 7.9% drop in the previous month. The World Bank on Tuesday raised its growth forecast for China to 5.6%, up from its previous forecast of 5.1% in March.
UN chief urges world to end plastic pollution on World Environment Day. The world economy is projected to grow 2.7% this year, said the OECD. German industrial output rose 0.3% in April on month, official data showed on Wednesday.
IFF kicks off annual Green Finance Award on World Environment Day
The International Finance Forum kicked off the IFF Global Green Finance Award on the occasion of the World Environment Day to encourage, recognise and reward financial institutions for their efforts in cutting carbon emissions, climate adaptation, and providing innovative solutions to climate change.
The theme for this year’s award is “Green Finance for High-Quality Economic Development”. The award is now open to global applications from the finance sector for its three awards including the Annual Award, the Innovation Award and the Growth Award.
The IFF Co-chair, Chair of the Council of the Presidents of the UN General Assembly (UNCPGA), Jury member of the award, Han Seung-soo said: “ we have to work hard to find innovations that can stimulate private funds to flow into green and climate projects for our safe and sustainable future, which is one of the main reasons why the IFF set up the Global Green Finance Award.”
In the final part of the Intergovernmental Panel on Climate Change (IPCC)’s sixth assessment report released in March, the United Nations panel said climate change is a threat to human well-being and planetary health. “There is a rapidly closing window of opportunity to secure a liveable and sustainable future for all.”
IFF’s Xia Le talks about US debt ceiling and implications for treasury bonds in interview with CGTN
Frequent debt ceiling raises could be a cause for concern for investors, said Xia Le, IFF Academic Committee Member and Chief Economist for Asia-Pacific at BBVA.
In an interview with CGTN, Xia said revising and raising US’s Treasury debt ceiling is nothing new but the last minute deal this time around is worrying.
“If similar situation continues to happen, investors will worry about the safety of their investment in the US treasury bonds and US dollar,” said Xia.
As US economy expands, the debt ceiling will have to keep rising and raising debt ceiling will be a bygone conclusion.
“There may be a risk that US treasury bonds will no longer be safe assets, which will have very negative consequences for global financial market,” said Xia.
Xia thinks investors and US treasury bond holders should rethink about foreign reserves and diversify their investment by investing in government bonds of the EU, China and Japan for instance.
“The internationalisation of yuan will be a good hedge for China. We can think about utilising new technology and arrangement to diversify. For example, China can sign bilateral swap plans with other central banks to diversify risk. China could also push forward the central bank digital currency (CBDC).”
China’s exports drop 7.5% in May
China’s exports fell sharply while imports drop slowed in May, customs data showed on Wednesday.
The country’s exports in US dollar terms fell at an annualized rate of 7.5% in May, down from a 8.5% growth in April. Imports contracted 4.5%, slower than the 7.9% drop in the previous month.
China’s exports rose 0.3% in the first five months of the year from the same period last year. Imports fell 6.7% from January to May compared to a year earlier.
China’s exports to major economies including the EU, US and Japan all dropped in the first five months of the year, falling 4.9%, 15.1% and 2.1% respectively.
World Bank raise China’s 2023 growth forecast
The World Bank on Tuesday raised its growth forecast for China to 5.6%, up from its previous forecast of 5.1% in March.
The bank also lifted forecast for global growth in 2023 as the US, China and other major economies have proven more resilient than forecast.
Global GDP is set to expand 2.1% this year, up from a 1.7% forecast in January, the World Bank said in its latest Global Economic Prospects.
The bank cut its 2024 global growth forecast to 2.4% from 2.7%, citing higher interest rates and tighter credit which could reduce business and investment next year.
Chinese universities raise tuition fees
Some Chinese universities have raised tuition fees for the new school year starting in September according to Chinese media reports.
East China University of Science and Technology in Shanghai raised tuition feesby 54% for some freshmen majoring in science, engineering and physical education and by 305 for students studying liberal arts.
Universities in northeastern Jilin province and southwestern Sichuan province are also set to raise tuition fees, with fees for some majors in Sichuan rising 41%.
The education ministry's expected budget expenditure for tertiary education in 2023 is to fall 3.7%.
China’s first home-grown cruise ship undocks in Shanghai
China’s first domestically-built large cruise ship left its docking in Shanghai on Tuesday to start sea trials.
Adora Magic City, the 135,500-tonne cruise ship is expected to be delivered by the end of this year.
The ship represents a significant technological advancement for China as large cruise ship is the last type of high-end ship that the country has yet to build.
More than 93 percent of its construction and over 85 percent of its interior work have been completed, according to its builder, Shanghai Waigaoqiao Shipbuilding- a subsidiary of China State Shipbuilding Corporation.
Summer Davos to be held in Tianjin from June 27-29
The Summer Davos Forum, also know as the Annual Meeting of the New Champions, will be held in Tianjin from June 27 to 29, according to an announcement by the National Development and Reform Commission
The theme for this year’s meeting is “Entrepreneurship: the Driving Force of the Global Economy”. More than 1,500 participants from politics, business, academia, social organizations and international organizations, the NDRC said.
UN chief urges world to end plastic pollution
In his message for World Environment Day, the Secretary-General of the United Nations Antonio Guterres urged the world to end plastic pollution.
“Plastic is made from fossil fuels - the more plastic we produce, the more fossil fuel we burn, and the worse we make the climate crisis,” the UN chief said.
The World Environment Day is observed on June 5 every year.Led by the United Nations Environment Programme (UNEP), and held annually since 1973, it has grown to be the largest global platform for environmental outreach.
World Environment Day 2023 is hosted by Côte d'Ivoire and supported by the Netherlands and the theme will focus on solutions to plastic pollution under the campaign #BeatPlasticPollution.
OECD slightly raises world growth forecast
The Organisation for Economic Co-operation and Development (OECD) slightly raised its growth outlook for the world economy on Wednesday.
The world economy is projected to grow 2.7% this year, said the Paris-based organisation, up from its previous forecast of 2.6% in March.
The growth rate is to moderately pick up to 2.9% in 2024, same as its March forecast.
US GDP is to expand 1.6% in 2023 and 1% in 2024 whereas China is expected to grow 5.4% this year and 5.1% in 2024.
Headline inflation in the OECD is projected to decline from 9.4% in 2022 to 6.6% in 2023 and 4.3% in 2024. The decline in inflation is due to tighter monetary policy taking effect, lower energy and food prices and reduced supply bottlenecks.
German industrial output rises slightly in April
German industrial output rose 0.3% in April on month, official data showed on Wednesday.
Industrial output rose 1.6% in the twelve month to April.
Production in construction rose 2% from the previous month, reversing a 2.9% decline in March. The manufacture of pharmaceutical products rose 6.4%. while the production of motor vehicles and parts fell 0.8%.
Meanwhile, production in the energy-intensive industrial branches was down by 1.1% in April compared to March.
Saudi Arabia to deepen oil cut as OPEC+ extends deal to 2024
Saudi Arabia said on Sunday that it would cut oil production by 1 million barrels per day for one month beginning in July as the group of major oil-producing countries - OPEC+ agreed to limit supply into 2024 in an effort to shore up prices.
OPEC+ countries agreed to extend oil production cuts announced in April through the end of 2024. The group, known as the Organisation of the Petroleum Exporting Countries and allies led by Russia, produces around 40% of the world’s crude oil.
OPEC+ countries cut oil production by 3.66 million barrels per day.
EU launches new unitary patent system
The EU launched its new unitary patent system last Thursday.
The Unitary Patent system “will make it simpler and easier for companies to protect their innovations in Europe and capitalise on their intellectual property”, said the EU in a statement.
The system aims to strengthen the EU's innovation and competitiveness and complete the Single Market for patents. It will initially cover 17 Member States, representing around 80% of the EU's GDP.
The system provides a one-stop-shop for the registration and enforcement of patents in Europe and therefore cut costs, red tapes and administrative burdens.
