Business

Taiwan’s fourth quarter GDP unexpectedly contracts

Published

8 months ago

January 18, 2023

admin

Taiwan's fourth quarter GDP unexpectedly contracts

Taiwan s trade-dependent economy unexpectedly contracted in the fourth quarter, putting in its worst performance in 13 years, hit by a drop in exports on slowing global tech demand and COVID-related chaos in its largest market China.

For the October-December period, annual gross domestic product (GDP) contracted by 0.86% from the same period a year earlier, compared with 4.01% growth for the previous quarter, preliminary data from the statistics agency showed on Wednesday.

That was worse than an increase of 1.3% forecast in a Reuters poll, and the worst quarterly performance since the economy contracted 1.13% in the third quarter of 2009, when the world was dealing with a financial crisis.

Compared with the previous quarter, Taiwan s economy contracted 4.24% at a seasonally adjusted annual rate.

“External demand has weakened significantly,” the Directorate General of Budget, Accounting and Statistics said, pointing to global inflation and interest rate rises suppressing demand and “the deterioration of the pandemic in mainland China interfering with consumption and production activities”.

For all of 2022, the economy expanded a preliminary 2.43%, compared to 6.53% logged for 2021. That was slightly slower than last year s 3% growth recorded in China, which was hit hard by stringent COVID curbs and a property market slump.

Taiwan s total fourth-quarter exports dropped 8.63% from a year earlier in U.S. dollar terms, the agency said.

As a key hub in the global technology supply chain for giants such as Apple Inc (AAPL.O), Taiwan s economy had outperformed many regional peers during the pandemic as it benefited from robust demand for tech exports as more people turned to working and studying from home.

But global economic woes driven by soaring inflation and the impact of the war in Ukraine, as well as China s pandemic situation, has impacted demand for made-in-Taiwan goods.

Taiwan will release revised GDP figures at a later date, yet to be set, including full-year growth forecasts for 2023. In November, the statistics agency revised down its full year 2023 outlook to 2.75% from a previous forecast of 3.05%.

Post Views: 30

Business

Nepra approves Rs3.28 per unit increase in power tariff

Published

2 days ago

September 23, 2023

admin

Nepra approves Rs3.28 per unit increase in power tariff

The National Electric Power Regulatory Authority (Nepra) has approved Rs3.28 per unit increase in power tariff on the account of fuel cost adjustment for fourth quarter of fiscal year 2022-23.

The regulatory body has sent his decision to the federal government for final approval. The increase in electricity prices will come into effect immediately after it is approved by the government.

The distribution companies (Discos) would recover Rs159 billion from consumers during the period of six months (October 2023 to March 2024).

The revised rate will be applicable on all customers.

Post Views: 7

Business

Inflation goes up as people feel effects of fuel price hikes

Published

2 days ago

September 23, 2023

admin

Inflation goes up as people feel effects of fuel price hikes

Food and fuel prices continue fuelling inflation in Pakistan as the Sensitive Price Indicator (SPI) for the week ended September 21 witnessed a 0.93 per increase amid the complete government failure to check the rates.

Read more: Food prices owing to weaker rupee, supply shortages will push Pakistan inflation: ADB

The latest data released by the Pakistan Bureau of Statistics (PBS) shows that chicken price had jumped by 8.49pc followed by petrol 8.51pc, diesel 5.54pc garlic 5.19pc and onion 3.02pc.

At the same time, the year-on-year increase in SPI stood at 38.66pc when compared with the corresponding week of last year.

Read more: More food inflation as fuel price hikes increase production, transportation costs

The rising inflation in Pakistan urgently needs government intervention and a study of how different governments are dealing with the challenge. Tax on cut on food items is one of methods.

Read more: Fighting the food inflation: From net-zero VAT to supermarkets seeking price cuts

Earlier this week, the Asian Development Bank (ADB) had warned that average inflation in Pakistan will soar to 29.2 per cent caused by supply shortages, continued currency depreciation, import restrictions, and fiscal stimulus for post-pandemic recovery.

Meanwhile, the rising food prices shouldn’t be a surprise given that the regular fuel price hikes are increasing the production and transportation costs.

The main reason behind the persistent inflation in Pakistan is devaluation as the rupee had dropped to the record against the US dollar – a trend that is being reversed somewhat amid a crackdown on blacking marketers on hoarders.

However, the exchange rate is still too high, requiring further correction, as the people have also been hit hard for power and gas tariffs as the conditions set by the International Monetary Fund (IMF).

Post Views: 8

Business

Power tariff hikes: The more you devalue rupee, the more capacity charges you pay

Published

6 days ago

September 19, 2023

admin

Power tariff hikes: The more you devalue rupee, the more capacity charges you pay

Devaluation – a process that started under former finance minister Miftah Ismail in late 2017 and late 2018 but gained momentum under the PTI government – is the root cause of inflation shouldn’t be a contested statement as it has made imports even more expensive for Pakistan.

And that’s countries like Pakistan are the worst affected due the rising commodities prices in global market as weaker currencies mean the overall impact is much deeper for them than the rest.

Read more: Rupee collapse is the reason behind all ills Pakistan is facing

This argument was endorsed by none other a high-ranking government official – Power Division Secretary Rashid Langrial who said on Monday that the capacity [charges] payment had doubled after the dollar exchange rate increased from Rs100 to Rs300, thus resulting in skyrocketing electricity tariffs for consumers.

Post Views: 26