THE RETURN OF CAPITAL EXPENDITURE OR CAPEX CYCLE IN MALAYSIA
|
|
- Claud Bradley
- 8 years ago
- Views:
Transcription
1 PUBLIC BANK BERHAD ECONOMICS DIVISION MENARA PUBLIC BANK 146 JALAN AMPANG KUALA LUMPUR TEL : /666 FAX : Public Bank Economic Review is published bi monthly by Economics Division, Public Bank Berhad. Materials in this publication may be used without restriction. However, an appropriate acknowledgement would be appreciated. While every effort has been taken to ensure the accuracy of the contents and analysis, Public Bank cannot accept any liability for any error or omission. THE RETURN OF CAPITAL EXPENDITURE OR CAPEX CYCLE IN MALAYSIA I. Introduction This article highlights some of the recent trends in capital expenditure (capex) by large private and public limited companies in Malaysia, based on a Business Expectations Survey of 270 companies in the country. The survey was conducted by the Department of Statistics, Malaysia, the latest being in October Trend in capital expenditure or capex provides a good indication not only on the strength of the current expansion in the Malaysian economy but also its future prospects. Capex, particularly by private companies, should be the driving force to support long-term sustainable economic growth of the Malaysian economy. Capex is an important driver for job creation and consumer spending, particularly for emerging market economies such as Malaysia. As part of the Malaysia's Economic Transformation Programme (ETP), the Malaysian Government is driving private capex and private investment to increase income and achieve a developed nation status by For emerging market economies, low capex and investment is often associated with low economic performance. Also, with low capex, the economy would perform significantly below its potential. II. Capex and Economic Growth The relationship between capex and economic growth is clear and well documented. In a simple form, growth accounting decomposes growth in output into three components, namely: growth in total factor productivity, growth in labour input and growth in capital input such as capex. The relationship between growth in output with the three input components is positive: Higher capital input will lead to higher output and thus economic growth. The economy can achieve and sustain high economic growth if there is a steady growth in capex and capital stock, particularly by the private sector. In the last two years, public investment and spending (instead of private investment) have taken a front seat in supporting economic growth in many developed and emerging market economies. The exceptional fiscal stimulus to support global demand brought down by the unprecedented global financial and economic crisis in 2007/08 has contributed to global growth. The surge in public spending and public sector deficit should only be transitory, in line with the popular proposition by the Keynesian economics that high public spending and investment can be injected to offset the fall in aggregate demand. While the debate on the effectiveness of high public spending and public investment on economic growth is still on, many economists are of the view that the high public spending in many of the developed and developing economies - coupled with other economic stimulus measures such as near 1
2 zero interest rates - has averted the risk of a second Great Depression. However, because of the huge rise in public spending and public debt within a relatively short period of time to the extent that it has reached an unsustainable level, many of the advanced and emerging market economies have begun to consolidate their fiscal positions through fiscal reforms and budget cuts. Some of the multilateral agencies such as the International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD) have also called for almost all OECD countries to bring public finances onto a sound footing from this year onwards. The challenge is to formulate an exit strategy of the fiscal accommodation judiciously such that it does not stall economic recovery that has gained some traction in recent months. Some economies in the eurozone have already started taking austerity measures to address sovereign debt issues and market confidence. The revival of capex and private investment to support future growth is vital. support long-term sustainable growth of the economy. As showed in Graph 1, in the post-asian financial crisis 1997/98, the percentage of private investment of GDP has fallen significantly to only 10.8 per cent in 2010 from 15.5 per cent in 2000 due to low private investment in the post-asian financial crisis period. The slow recovery in private investment during this period was attributed to overinvestment that had taken place in the pre-crisis period of the Asian financial crisis 1997/98 and low corporate profitability. At the same time, Malaysia had to face stiff competition for foreign investment due to greater economic openness and liberalisation as well as robust growth in labour abundant economies in Asia such as China. III. Need for a Strong Capex Cycle in Malaysia In Malaysia, the need for a strong capex cycle - particularly by private firms - is to support the long-term sustainable growth of the economy and to further boost its competitiveness. Malaysia needs a return of strong capex or capital investment to drive economic development and growth. Like other emerging market economies, while efforts to accelerate growth in total factor productivity through innovation activities and human capital investment are ongoing, capital accumulation still forms an important component of the growth process in Malaysia. The fact that growth in total factor productivity and skilled labour can only be accelerated in the long run, the burden to support growth rests on capital stock. It is well noted that the falling share of private investment in gross domestic product (GDP) in the Malaysian economy during the post-asian financial crisis period is being addressed to Also, the need for a fast return in capex and investment cycle stems from the need for the Government to remain on track in its fiscal consolidation which has started in The consolidation will help the Government regain its fiscal flexibility to support the economy, if growth falls below expectations in the future. Like other major economies in the west and Asia, Malaysia has introduced exceptional stimulus packages to stimulate the economy and avoid a prolonged recession in As a result of these packages, the public sector deficit which was averaging at 4.6 per cent of GDP in the period spiked up to 7 per cent of GDP in 2009 before falling to 5.6 per 2
3 cent of GDP in 2010 (Graph 2). With lower development expenditure and modest rise in operating expenditure, the Government plans to further reduce its deficit to 5.4 per cent of GDP in and rising business sentiment. During the first half of 2010, the Malaysian economy recorded robust GDP growth of 9.4 per cent, helped by sustained domestic demand and inventory rebuilding. For the whole year of 2010, total capex - as showed by the Business Expectations Survey - was estimated to rise by 16.7 per cent from the preceding year (Graph 3). The increase was significantly higher than the 7 per cent estimated GDP growth for the year. It is important to note that a large portion of the increase in the capex was financed by own funds, supplemented by local and foreign bank loans. The way the capex was financed indicated that large private and public companies in Malaysia maintained a strong balance sheet, despite the economic recession in It is well noted that excessive public spending to drive economic growth is unsustainable. While high public spending and public deficits may be justified on the basis that it is only transitory to stabilise the economy, it could drag future growth if it resulted in unsustainable public debt. Private investment and capex have to come to the fore to replace public spending and lead economic growth. IV. Recent Trends of Capex in Malaysia In 2009, total capital expenditure by private and public limited companies in Malaysia bottomed out when the Malaysian economy hit a recession. Based on the Business Expectations Survey by the Department of Statistics, Malaysia, in October 2010, total capex by large private and public limited companies dropped by over 31 per cent in However, the drop in the capex was reversed in 2010 when it began to show a rising trend in the first half of 2010, in line with the broad-based recovery in the Malaysian economy The increase in the capex in 2010 was also consistent with the rising trend of the rate of capacity utilisation of the manufacturing sector in the country. During the period, the rate of capacity utilisation of the manufacturing sector rose significantly from 59 per cent in the first quarter of 2009 to 75 per cent in the third quarter of 2010 (Graph 4). The increase in the rate of capacity utilisation took place in both domestic- and exportoriented industries, confirming a broad-based recovery in the Malaysian economy. 3
4 The Business Expectations Survey by the Department of Statistics, Malaysia, in October 2010 also showed that the largest capex was for acquisition of new machinery and equipment and also for acquisition of information technology (hardware and software). The type of the capex showed the effort by the companies to further enhance their efficiency and productivity. Sectors which showed a significant increase in capital spending in 2010 included transport and communication sector, real estate and business sector, construction and manufacturing sectors. Within the manufacturing sector, the highest capital spending was in industries such as other non-metallic mineral products; radio, television and communication equipment and apparatus; and food products and beverages. V. Factors to Boost Capex Several factors will continue to further reinforce the rising trend of capital expenditure in Malaysia in Stable Economic Outlook First, the present positive outlook for the global economy will have a significant bearing on the prospects and growth of the Malaysian economy and capital spending. As an open economy, the prospects of the global economy matter to investment plans by firms in Malaysia. Based on the positive trend of global indicators (such as the Global Purchasing Managers' Index which reflects global activities in the manufacturing and services sectors) and the latest OECD Leading Economic Indicator, the global economy remains on a recovery track. Also, recent economic assessments show that the global recovery is likely to remain on course in 2011, although the rate of the recovery will remain slow and disappointing in the developed economies. Various headwinds such as ongoing deleveraging process in the US which is expected to take several years to be resolved, tight credit, high unemployment, loss of household wealth and unsustainable sovereign debt will continue to test the global recovery. However, with the strong commitment by major central banks to keep their monetary policy supportive of economic growth with low interest rates amidst low inflation, the global recovery, nevertheless, should continue. At the same time, fiscal consolidation in the developed economies, while it is an urgent task to be pursued, is expected to be proceeded cautiously, realising that the recovery is still fragile. The expectations for robust growth in emerging market economies will contribute to the global recovery. Based on the IMF World Economic Outlook in October 2010, Brazil and Russia are expected to grow by 4.1 per cent and 4.3 per cent, respectively in Asia is expected to remain robust with India and China to continue to lead regional growth. India is expected to grow by 8.4 per cent and China by 9.6 per cent in The strong growth outlook for Asia will have a positive impact on Malaysia through higher intra-regional trade. Competitive Economy Second, Malaysia is a highly competitive economy and remains attractive as an investment destination for foreign direct investment. The overall Global Competitiveness Index (GCI) for Malaysia is high: In the GCI, Malaysia was ranked 26th out of 139 countries in terms of international competitiveness. The high ranking was contributed 4
5 by key factors such as quality infrastructure, stable macroeconomic environment, strong financial market development, strong banking sector, easy access to credit and efficient labour market. The competitiveness of the economy will continue to support strong investment in capital stock in Malaysia. Consistent with the findings of the GCI, Malaysia was also ranked high by the World Bank and the International Finance Corporation (IFC) report on the ease of doing business in Malaysia. Out of 183 economies assessed by the World Bank and the IFC in its Doing Business Report 2011, Malaysia was ranked 21st based on key factors such as getting credit, protecting investors, paying taxes and trading across borders. In the World Bank and the IFC's report, Malaysia was ranked ahead of some of the developed economies such as Germany and France. Strategies to Boost Private Investment Third, the Malaysian Government has introduced important measures which will support capital spending and other investments in the country. For example, the Government has reduced the rate for corporate tax to 25 per cent, effective from In the last two budgets (i.e. Budget 2010 and Budget 2011), the Government has introduced aggressive measures to enhance both domestic and foreign direct investment by providing business-friendly environment, reducing government involvement in economic activities via privatisation, enhancing public-private partnership initiatives and relaxing conditions and procedures for foreign companies to operate in Malaysia. The two Budgets also provide concrete steps to boost the development of key industries such as tourism, information technology and communication, agriculture, construction, finance and Islamic banking, halal food and green technology. Small- and medium-sized enterprises (SMEs) will be strengthened via SME Development programmes. Efforts to crystallise investment plans in the ETP and the 12 National Key Economic Areas (NKEAs) will accelerate growth in capex and other investments. Easy Access to Financing and Low Funding Cost Fourth, easy access to financing and low cost of financing matter to capex and other investments. In this regard, the role and capacity of the banking system in Malaysia to provide adequate financing and serve the real economy is important to meet the expected increasing financing needs. As highlighted in the Public Bank Economic Review published in December 2010, the banking system in Malaysia is strong based on its strong capitalisation, strong profitability and strong asset quality. With ample liquidity in the banking system and modest inflation outlook, interest rates and thus funding costs to firms in Malaysia are expected to remain low. No Major Constraints by Firms Finally, whether or not planned investment will turn into realised investment depends partly on firms' expectations of their operational constraints in the future. The Business Expectations Survey in October 2010 showed that over 45 per cent of the firms surveyed did not anticipate any significant constraint (such as high prices of raw materials, manpower issue or tough competition) to affect their business operations, going forward. This positive indication by the firms should result in high realised investment and capex this year. VI. Conclusions In Malaysia, capex cycle has resumed and is expected to further strengthen in 2011 which in turn will boost the prospects and growth of the Malaysian economy. Based on the Business Expectations Survey by the Department of Statistics, Malaysia in October last year, capital expenditure by private and public limited companies showed a rising and healthy trend in 2010, in line with the strong recovery in the Malaysian economy. The rising trend of the capex was consistent with the increasing trend of the capacity utilisation rate of the manufacturing sector due to sustained growth 5
6 in domestic demand and improved external demand after a sharp economic contraction in Looking forward, the rising trend in capex in Malaysia is expected to be reinforced by several factors such as ongoing recovery in the global outlook, Malaysia's stable economic outlook, competitiveness of the Malaysian economy, strong banking sector with sufficient liquidity, and low interest rates. Also, the Government has introduced strategies and measures to boost private investment (such as lower corporate tax) and to further improve the cost of doing business and the efficiency of public sector's delivery in Malaysia. Copyright 2011 Public Bank Berhad (6463 H) ALL RIGHTS RESERVED 6
X. INTERNATIONAL ECONOMIC DEVELOPMENT 1/
1/ X. INTERNATIONAL ECONOMIC DEVELOPMENT 1/ 10.1 Overview of World Economy Latest indicators are increasingly suggesting that the significant contraction in economic activity has come to an end, notably
More informationEurozone. EY Eurozone Forecast September 2013
Eurozone EY Eurozone Forecast September 213 Austria Belgium Cyprus Estonia Finland France Germany Greece Ireland Italy Luxembourg Malta Netherlands Portugal Slovakia Slovenia Spain Outlook for Finland
More informationJoint Economic Forecast Spring 2013. German Economy Recovering Long-Term Approach Needed to Economic Policy
Joint Economic Forecast Spring 2013 German Economy Recovering Long-Term Approach Needed to Economic Policy Press version Embargo until: Thursday, 18 April 2013, 11.00 a.m. CEST Joint Economic Forecast
More informationAdjusting to a Changing Economic World. Good afternoon, ladies and gentlemen. It s a pleasure to be with you here in Montréal today.
Remarks by David Dodge Governor of the Bank of Canada to the Board of Trade of Metropolitan Montreal Montréal, Quebec 11 February 2004 Adjusting to a Changing Economic World Good afternoon, ladies and
More informationINFLATION REPORT PRESS CONFERENCE. Thursday 4 th February 2016. Opening remarks by the Governor
INFLATION REPORT PRESS CONFERENCE Thursday 4 th February 2016 Opening remarks by the Governor Good afternoon. At its meeting yesterday, the Monetary Policy Committee (MPC) voted 9-0 to maintain Bank Rate
More informationGeneral Certificate of Education Advanced Level Examination June 2013
General Certificate of Education Advanced Level Examination June 2013 Economics ECON4 Unit 4 The National and International Economy Tuesday 11 June 2013 9.00 am to 11.00 am For this paper you must have:
More informationTHE GREAT DEPRESSION OF FINLAND 1990-1993: causes and consequences. Jaakko Kiander Labour Institute for Economic Research
THE GREAT DEPRESSION OF FINLAND 1990-1993: causes and consequences Jaakko Kiander Labour Institute for Economic Research CONTENTS Causes background The crisis Consequences Role of economic policy Banking
More informationBe prepared Four in-depth scenarios for the eurozone and for Switzerland
www.pwc.ch/swissfranc Be prepared Four in-depth scenarios for the eurozone and for Introduction The Swiss economy is cooling down and we are currently experiencing unprecedented levels of uncertainty in
More informationSection 2 Evaluation of current account balance fluctuations
Section 2 Evaluation of current account balance fluctuations Key points 1. The Japanese economy and IS balance trends From a macroeconomic perspective, the current account balance weighs the Japanese economy
More informationHow To Be Cheerful About 2012
2012: Deeper into crisis or the long road to recovery? Bart Van Craeynest Hoofdeconoom Petercam Bart.vancraeynest@petercam.be 1 2012: crises looking for answers Global slowdown No 2008-0909 rerun Crises
More informationProject LINK Meeting New York, 20-22 October 2010. Country Report: Australia
Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University
More informationStatement to Parliamentary Committee
Statement to Parliamentary Committee Opening Remarks by Mr Glenn Stevens, Governor, in testimony to the House of Representatives Standing Committee on Economics, Sydney, 14 August 2009. The Bank s Statement
More informationCzech Economic Outlook and Prospects for the Exchange Rate Floor
Czech Economic Outlook and Prospects for the Exchange Rate Floor Vladimir Tomsik Vice-Governor Czech National Bank Small Talks Symposium 9 October 2015 Investor Seminar 10 October 2015 IMF/WB Annual Meeting
More informationLatvia during the global economic and financial crisis
Latvia during the global economic and financial crisis Second Japan Baltic Seminar 1 December 2009, Tokyo 1 Different experience behind, challenges ahead 15 10 5 Transition -56% in 1991-1993 GDP 1991-2012
More informationImpact of Global Financial Crisis on South Asia
Impact of Global Financial Crisis on South Asia February 17, 2009 - The global financial crisis hit South Asia at a time when it had barely recovered from severe terms of trade shock resulting from the
More informationThe global economy Banco de Portugal Lisbon, 24 September 2013 Mr. Pier Carlo Padoan OECD Deputy Secretary-General and Chief Economist
The global economy Banco de Portugal Lisbon, 24 September 213 Mr. Pier Carlo Padoan OECD Deputy Secretary-General and Chief Economist Summary of presentation Global economy slowly exiting recession but
More informationKey themes from Treasury s Business Liaison Program
Key themes from Treasury s Business Liaison Program 73 Introduction As part of Treasury s Business Liaison Program, staff met with around 25 businesses and a number of industry and government organisations
More informationForecasting Chinese Economy for the Years 2013-2014
Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: xsli@cass.org.cn
More informationMonetary policy assessment of 13 September 2007 SNB aiming to calm the money market
Communications P.O. Box, CH-8022 Zurich Telephone +41 44 631 31 11 Fax +41 44 631 39 10 Zurich, 13 September 2007 Monetary policy assessment of 13 September 2007 SNB aiming to calm the money market The
More informationLars Osberg. Department of Economics Dalhousie University 6214 University Avenue Halifax, Nova Scotia B3H 3J5 CANADA Email: Lars.Osberg@dal.
Not Good Enough to be Average? Comments on The Weak Jobs recovery: whatever happened to the great American jobs machine? by Freeman and Rodgers Lars Osberg Department of Economics Dalhousie University
More informationMACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS
MACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS BUSINESS ANALYSIS INTRODUCTION To determine a proper price for a firm s stock, security analyst must forecast the dividend & earnings that can be expected
More informationStatement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services
For release at 8:30 a.m. EST February 10, 2016 Statement by Janet L. Yellen Chair Board of Governors of the Federal Reserve System before the Committee on Financial Services U.S. House of Representatives
More informationThe U.S. Economy after September 11. 1. pushing us from sluggish growth to an outright contraction. b and there s a lot of uncertainty.
Presentation to the University of Washington Business School For delivery November 15, 2001 at approximately 8:05 AM Pacific Standard Time (11:05 AM Eastern) By Robert T. Parry, President and CEO of the
More informationBackground. Key points
Background Employment forecasts over the three years to March 2018 1 are presented in this report. These employment forecasts will inform the Ministry s advice relating to immigration priorities, and priority
More informationPROJECTIONS FOR THE PORTUGUESE ECONOMY: 2015-2017. Box 1 Projection assumptions
PROJECTIONS FOR THE PORTUGUESE ECONOMY: 2015-2017 Box 1 Projection assumptions Projections for the Portuguese economy: 2015-2017 7 Projections for the Portuguese economy: 2015-2017 1. Introduction Projections
More informationUK Economic Forecast Q3 2014
UK Economic Forecast Q3 2014 David Kern, Chief Economist at the BCC The main purpose of the BCC Economic Forecast is to articulate a BCC view on economic topics that are relevant to our members, and to
More informationUK Economic Forecast Q1 2015
UK Economic Forecast Q1 2015 David Kern, Chief Economist at the BCC The main purpose of the BCC Economic Forecast is to articulate a BCC view on economic topics that are relevant to our members, and to
More informationMACROECONOMIC AND FISCAL ASSESSMENT
Public Sector Financial Management Program (RRP SAM 46384) A. BACKGROUND MACROECONOMIC AND FISCAL ASSESSMENT 1. Samoa is composed of about 10 islands, 4 inhabited, and several uninhabited islets situated
More information2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013
2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 U.S. stock market performance in 2012 * +12.59% total return +6.35%
More informationChapter 12: Gross Domestic Product and Growth Section 1
Chapter 12: Gross Domestic Product and Growth Section 1 Key Terms national income accounting: a system economists use to collect and organize macroeconomic statistics on production, income, investment,
More information28.10.2013. The recovery of the Spanish economy XVI Congreso Nacional de la Empresa Familiar/Instituto de la Empresa Familiar Luis M.
28.10.2013 The recovery of the Spanish economy XVI Congreso Nacional de la Empresa Familiar/Instituto de la Empresa Familiar Luis M. Linde Governor Let me begin by thanking you for inviting me to take
More informationEUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA
EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA On the basis of the information available up to 22 May 2009, Eurosystem staff have prepared projections for macroeconomic developments in the
More informationEconomic Outlook, November 2013 November 21, 2013. Jeffrey M. Lacker President Federal Reserve Bank of Richmond
Economic Outlook, November 2013 November 21, 2013 Jeffrey M. Lacker President Federal Reserve Bank of Richmond Asheboro SCORE Asheboro, North Carolina It's a pleasure to be with you today to discuss the
More informationThe Employment Crisis in Spain 1
The Employment Crisis in Spain 1 Juan F Jimeno (Research Division, Banco de España) May 2011 1 Paper prepared for presentation at the United Nations Expert Meeting The Challenge of Building Employment
More informationPortugal Programme Assessment
1 Portugal Programme Assessment European Commission, DG ECFIN 15 May, 2014 2 Root causes of Portugal's initial imbalances and need for assistance Macroeconomic imbalances Low GDP and productivity for more
More information2013 2014e 2015f. www.economics.gov.nl.ca. Real GDP Growth (%)
The global economy recorded modest growth in 2014. Real GDP rose by 3.4%, however, economic performance varied by country and region (see table). Several regions turned in a lackluster performance. The
More informationManpower Employment Outlook Survey Ireland
Manpower Employment Outlook Survey Ireland Q1 215 Country Name Employment Outlook The Manpower Employment Outlook Survey for the first quarter 215 was conducted by interviewing a representative sample
More informationGlobal outlook: Healthcare
Global outlook: Healthcare March 2014 healthcare 1 Today s presenters Ana Nicholls Managing Editor, Industry Briefing Economist Intelligence Unit Lauren Brayshaw Marketing executive Economist Intelligence
More informationAgents summary of business conditions
Agents summary of business conditions February Consumer demand had continued to grow at a moderate pace. Housing market activity had remained subdued relative to levels in H. Investment intentions for
More informationMarkit Global Business Outlook Survey
News Release EMBARGOED UNTIL: :1 (UK), 1 March 14 Markit Global Business Outlook Survey Developed world set to lead strengthening global upturn in 14 Global business optimism hits two-year high Improved
More informationIW Monetary Outlook December 2015
IW policy paper 37/2015 Contributions to the political debate by the Cologne Institute for Economic Research IW Monetary Outlook December 2015 Weak Credit Growth Hinders Eurozone Inflation to Increase
More informationIs U.S. Household Savings Rate Dangerously Low?
GLOBAL COMMENTARY July 22, 28 David Malpass 212-876-44 dmalpass@encimaglobal.com Is U.S. Household Savings Rate Dangerously Low? The front page of Sunday s New York Times highlighted the heavy household
More informationWorld of Work Report 2012
World of Work Report 2012 Better jobs for a better economy Summary INTERNATIONAL LABOUR ORGANIZATION INTERNATIONAL INSTITUTE FOR LABOUR STUDIES How to move out of the austerity trap? The employment situation
More informationTHE ECONOMIC IMPACT OF CORPORATE TAX RATE REDUCTIONS
THE ECONOMIC IMPACT OF CORPORATE TAX RATE REDUCTIONS Leadership makes the difference January 211 The Economic Impact of Corporate Tax Rate Reductions January 211 Canadian Manufacturers & Exporters Author:
More informationConsolidated Nine-month Report of Baader Bank AG as of 30 September 2012
Consolidated Nine-month Report of Baader Bank AG as of 30 September 2012 Overview of key figures EARNINGS 1 Jan. - 30 Sept. 2012 1 Jan. - 30 Sept. 2011 Change % Net interest income thou. 4.06 4.66-13.0
More informationGeneral Certificate of Education Advanced Level Examination January 2010
General Certificate of Education Advanced Level Examination January 2010 Economics ECON4 Unit 4 The National and International Economy Tuesday 2 February 2010 1.30 pm to 3.30 pm For this paper you must
More informationM C A S S E T M A N A G E M E N T H O L D I N G S, L L C
M C A S S E T M A N A G E M E N T H O L D I N G S, L L C 6 Landmark Square, Stamford, CT 06901 Phone (203) 487-6700 Fax: (203) 487-6720 A Global Economy that Sisyphus Would Understand 2013 AAAIM National
More informationEFN REPORT. ECONOMIC OUTLOOK FOR THE EURO AREA IN 2013 and 2014
EFN REPORT ECONOMIC OUTLOOK FOR THE EURO AREA IN 2013 and 2014 Autumn 2013 1 About the European ing Network The European ing Network (EFN) is a research group of European institutions, founded in 2001
More informationGlobal Economic Outlook
Global Economic Outlook 3rd Quarter 2014 Offprint Economic Outlook Eurozone Global Economic Outlook 3rd Quarter 2014 Contents United States: A major first-quarter stumble, but future prospects remain undimmed
More informationFinal Assessment 1 of Spain's eligibility for an EFSF/ESM loan to recapitalize certain financial institutions
Final Assessment 1 of Spain's eligibility for an EFSF/ESM loan to recapitalize certain financial institutions Background On 25 June 2012, the Spanish Government applied for external financial assistance
More informationBest Essay from a First Year Student
RBA ECONOMICS COMPETITION 2010 Appreciation of Australia s real exchange rate: causes and effects Best Essay from a First Year Student ASHVINI RAVIMOHAN The University of New South Wales Appreciation of
More informationNorth American Steel Industry: Recent Market Developments and Key Challenges Going Forward
North American Steel Industry: Recent Market Developments and Key Challenges Going Forward OECD Steel Committee May 6-7, 21 Paris, France * American Iron and Steel Institute (AISI) Steel Manufacturers
More informationTREASURY MANAGEMENT UPDATE QUARTER 4 2014/15
Committee and Date Cabinet 10 June 2015 12.30 pm Item 9 Public TREASURY MANAGEMENT UPDATE QUARTER 4 2014/15 Responsible Officer James Walton e-mail: james.walton@shropshire.gov.uk Tel: (01743) 255011 1.
More informationNew Monetary Policy Challenges
New Monetary Policy Challenges 63 Journal of Central Banking Theory and Practice, 2013, 1, pp. 63-67 Received: 5 December 2012; accepted: 4 January 2013 UDC: 336.74 Alexey V. Ulyukaev * New Monetary Policy
More informationIt is with great pleasure that I address you here today. I would like to. thank Luis for providing this opportunity. The subject that I will discuss
Ladies and gentlemen, It is with great pleasure that I address you here today. I would like to thank Luis for providing this opportunity. The subject that I will discuss today, is recovery and reform.
More informationThe EMU and the debt crisis
The EMU and the debt crisis MONETARY POLICY REPORT FEBRUARY 212 43 The debt crisis in Europe is not only of concern to the individual debt-ridden countries; it has also developed into a crisis for the
More informationCurrent account deficit -10. Private sector Other public* Official reserve assets
Australian Capital Flows and the financial Crisis Introduction For many years, Australia s high level of investment relative to savings has been supported by net foreign capital inflow. This net capital
More informationARC Assigns BBB Rating to Italy
ARC Assigns BBB Rating to Italy ISSUER RATINGS DATE Republic of Italy August 28, 2015 ISSUER RATINGS - FOREIGN CURRENCY Medium and Long Term BBB (BBB, Stable) ISSUER RATINGS - LOCAL CURRENCY Medium and
More informationGrowth and volatility will define global economy in 2016, says PineBridge Investments
Growth and volatility will define global economy in 2016, says PineBridge Investments PineBridge Investments forecasts 2.7% GDP growth in the United States Eurozone growth projected to slightly improve
More informationSTABILITY PROGRAMME 2014-2017
STABILITY PROGRAMME 2014-2017 COUNCIL OF MINISTERS APRIL 30 2014 Stability Programme 2014-2017 The Council of Ministers has approved today the referral to Brussels of: The Stability Programme 2014-2017,
More informationWorld Manufacturing Production
Quarterly Report World Manufacturing Production Statistics for Quarter III, 2013 Statistics Unit www.unido.org/statistics Report on world manufacturing production, Quarter III, 2013 UNIDO Statistics presents
More informationTHE STATE OF THE ECONOMY
THE STATE OF THE ECONOMY CARLY HARRISON Portland State University Following data revisions, the economy continues to grow steadily, but slowly, in line with expectations. Gross domestic product has increased,
More informationBox 3.1: Business Costs of Singapore s Manufacturing and Services Sectors
Economic Survey of Singapore 213 Box 3.1: Business Costs of Singapore s Manufacturing and Services Sectors Business costs in the manufacturing and services sectors have increased after a period of decline
More informationManagement s Discussion and Analysis
Management s Discussion and Analysis 6 Financial Policy Sysmex regards increasing its market capitalization to maximize corporate value an important management objective and pays careful attention to stable
More informationPwC FY 2013 Global Revenues Grow to US$32.1 billion
Press release Date EMBARGO 08:00 New York time Tuesday 1 October 2013 Contact Mike Davies + 44 20 7804 2378 Email: mike.davies@uk.pwc.com Mike Ascolese Tel: +1 646 471 8106 Email: mike.ascolese@us.pwc.com
More informationInternational Monetary and Financial Committee
International Monetary and Financial Committee Twenty-Seventh Meeting April 20, 2013 Statement by Koen Geens, Minister of Finance, Ministere des Finances, Belgium On behalf of Armenia, Belgium, Bosnia
More informationMario Draghi: Europe and the euro a family affair
Mario Draghi: Europe and the euro a family affair Keynote speech by Mr Mario Draghi, President of the European Central Bank, at the conference Europe and the euro a family affair, organised by the Bundesverband
More informationThe current economic situation in Germany. Deutsche Bundesbank Monthly Report February 2015 5
The current economic situation in Germany Deutsche Bundesbank 5 6 Overview Global economy German economy emerging from sluggish phase faster than expected The global economy looks to have expanded in the
More informationForecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014
Ministry of Finance Chief Economist - Research, State Revenue and International Affairs June 2013 Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014
More informationEconomic Snapshot for February 2013
Economic Snapshot for February 2013 Christian E. Weller on the State of the Economy Christian E. Weller, associate professor, Department of Public Policy and Public Affairs, University of Massachusetts
More informationEuro Zone s Economic Outlook and What it Means for the United States
WELCOME TO THE WEBINAR WEBINAR LINK: HTTP://FRBATL.ADOBECONNECT.COM/ECONOMY/ DIAL-IN NUMBER (MUST USE FOR AUDIO): 855-377-2663 ACCESS CODE: 71032685 Euro Zone s Economic Outlook and What it Means for the
More informationHow should we assess the implications of a rise in bond yields for UK pension schemes?
How should we assess the implications of a rise in bond yields for UK pension schemes? Executive Summary In common with other, core sovereign bond markets, gilt yields are extraordinarily low by comparison
More informationTO OUR SHAREHOLDERS A MESSAGE FROM THE CEO. shareholders equity ratio and ROE both rose to over 10%.
TO OUR SHAREHOLDERS A MESSAGE FROM THE CEO During the fiscal year ended March 31, 2004, attained record-high total revenues, income before income taxes, and net income. We also made steady progress in
More informationSpain Economic Outlook. Rafael Doménech EUI-nomics 2015 Debating the Economic Conditions in the Euro Area and Beyond Firenze, 24th of April, 2015
Spain Economic Outlook Rafael Doménech EUI-nomics 2015 Debating the Economic Conditions in the Euro Area and Beyond Firenze, 24th of April, 2015 The outlook one year ago: the risks were to the upside for
More informationWorld Manufacturing Production
Quarterly Report World Manufacturing Production Statistics for Quarter IV, 2013 Statistics Unit www.unido.org/statistics Report on world manufacturing production, Quarter IV, 2013 UNIDO Statistics presents
More informationPROJECTION OF THE FISCAL BALANCE AND PUBLIC DEBT (2012 2027) - SUMMARY
PROJECTION OF THE FISCAL BALANCE AND PUBLIC DEBT (2012 2027) - SUMMARY PUBLIC FINANCE REVIEW February 2013 SUMMARY Key messages The purpose of our analysis is to highlight the risks that fiscal policy
More informationYear Two. World Report
Year Two The global economy is now a little more than one year into the economic and stock market recoveries that have occurred since the Lehman shock of September 2008. After that credit crisis triggered
More informationAS Economics. Introductory Macroeconomics. Sixth Form pre-reading
AS Economics Introductory Macroeconomics Sixth Form pre-reading National income National income (Y) = money value of goods and services produced in an economy over a period of time, usually one year. National
More informationDiesel Economics - Factors Affecting Productivity in Denmark
Skatteudvalget 2009-10 SAU alm. del Bilag 291 Offentligt Potential growth and fiscal consolidation in the medium term Visit of the Danish Parliament s Tax Committee, 8 September 2010 Sven Blondal Macroeconomic
More informationMonetary Policy Matters
Monetary Policy Matters February 26, 2015 by Mark Mobius of Franklin Templeton Investments This year we expect the divergence in monetary policy among the world s central banks to be a key theme and a
More informationMarkit Global Business Outlook Survey
News Release EMBARGOED UNTIL: 00:01 (UK), 14 July 2014 Markit Global Business Outlook Survey Worldwide business confidence wanes Global optimism slips from two-year high Waning confidence centred on eurozone
More information2013 global equity outlook: Searching for alpha in a stock picker s market
March 2013 2013 global equity outlook: Searching for alpha in a stock picker s market Saira Malik, Head of Global Equity Research, TIAA-CREF Executive summary The outlook for equity markets is favorable
More informationInsurance market outlook
Munich Re Economic Research 2 May 2013 Global economic recovery provides stimulus to the insurance industry long-term perspective positive as well Once a year, MR Economic Research produces long-term forecasts
More informationThe International Monetary Order and the Canadian Economy
Notes for Remarks by David Dodge Governor of the Bank of Canada to the Canada-U.K. Chamber of Commerce London, U.K. 28 June 2005 The International Monetary Order and the Canadian Economy As business people
More informationManagement s Discussion and Analysis
Management s Discussion and Analysis 64 Financial Policy Sysmex regards increasing its market capitalization to maximize corporate value as an important management objective and pays careful attention
More informationCyprus. Total exports as a % of GDP (2013) Innovation Union Scoreboard (2013) N.A. (2007) N.A. (2008) Trade integration in the single market (2013)
Public administration and business environment Access to markets, infrastructure and services Energy, raw materials Investment and skills Access to finance productivity 3.13 Cyprus Cyprus Position compared
More informationGross fixed capital formation: new figures old problems
KfW Investment Barometer Germany: September Frankfurt, 7 th October Gross fixed capital formation: new figures old problems R&D expenditure now officially counts as investment. The investment rates of
More informationLEE BUSI N ESS SCHOOL UNITED STATES QUARTERLY ECONOMIC FORECAST. U.S. Economic Growth to Accelerate. Chart 1. Growth Rate of U.S.
CENTER FOR BUSINESS & ECONOMIC RESEARCH LEE BUSI N ESS SCHOOL UNITED STATES QUARTERLY ECONOMIC FORECAST O U.S. Economic Growth to Accelerate ver the past few years, U.S. economic activity has remained
More informationEFN REPORT. ECONOMIC OUTLOOK FOR THE EURO AREA IN 2015 and 2016. Winter 2014/15
EFN REPORT ECONOMIC OUTLOOK FOR THE EURO AREA IN 2015 and 2016 Winter 2014/15 1 About the European ing Network The European ing Network (EFN) is a research group of European institutions, founded in 2001
More informationEMBARGOED UNTIL TUESDAY, 12 MARCH 2013 AT 00.01 GMT
EMBARGOED UNTIL TUESDAY, 12 MARCH 2013 AT 00.01 GMT Media Contact: Juan David Tous (4) 3815151 juan.tous@manpower.com.co LABOR MARKET IN COLOMBIA EXPECTED TO MOVE AT A SLIGHTLY SLOWER PACE ManpowerGroup
More informationGoldman Sachs European Financials Conference. 2. I d like to start by thanking our hosts, Goldman Sachs, for inviting me to speak today.
10 June 2010 Goldman Sachs European Financials Conference 1. Good morning. 2. I d like to start by thanking our hosts, Goldman Sachs, for inviting me to speak today. 3. I will focus on three topics: Our
More informationCESEE DELEVERAGING AND CREDIT MONITOR 1
DELEVERAGING AND CREDIT MONITOR 1 February 1, 1 BIS reporting banks continued to scale back their funding to Central, Eastern and South Eastern Europe () in Q3 13, at broadly the same pace as in Q 13,
More informationGreece Current trajectory & macroeconomic outlook
Greece Current trajectory & macroeconomic outlook 2 η Διημερίδα Επίκαιρα Ζητήματα Φορολογικού Δικαίου 12-13 Δεκεμβρίου 2015 e-θέμις Dr. Platon Monokroussos Group Chief Economist Eurobank Ergasias S.A.
More informationGlobal Economic Update Interaction of Developed and Emerging Business Cycles
Global Economic Update Interaction of Developed and Emerging Business Cycles This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe, Qualified
More informationThe following text represents the notes on which Mr. Parry based his remarks. 1998: Issues in Monetary Policymaking
Phoenix Society of Financial Analysts and Arizona State University Business School ASU, Memorial Union - Ventana Room April 24, 1998, 12:30 PM Robert T. Parry, President, FRBSF The following text represents
More informationRussia: Where to find new growth drivers?
Russia: Where to find new growth drivers? Sanna Kurronen Economist +38 4 68 369 sanna.kurronen@danskebank.com 14 February 213 Important disclosures and certifications are contained from page of this report.
More information18 ECB FACTORS AFFECTING LENDING TO THE PRIVATE SECTOR AND THE SHORT-TERM OUTLOOK FOR MONEY AND LOAN DYNAMICS
Box 2 FACTORS AFFECTING LENDING TO THE PRIVATE SECTOR AND THE SHORT-TERM OUTLOOK FOR MONEY AND LOAN DYNAMICS The intensification of the financial crisis in the fourth quarter of 211 had a considerable
More informationRecovery in UK property to gain momentum. Recovery in UK property market to gain momentum. Research & Strategy. June 2013. Economic growth recovering
Research & Strategy Recovery in UK property to gain momentum June 13 Recovery in UK property market to gain momentum This hasn t been a typical recession and it won t be a typical recovery. Nevertheless
More informationLIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS
APRIL 2014 LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS Most economists talk about where the economy is headed it s what they do. Paying attention to economic indicators can give you an idea of
More informationMeeting with Analysts
CNB s New Forecast (Inflation Report II/2015) Meeting with Analysts Petr Král Prague, 11 May, 2015 1 Outline Assumptions of the forecast The new macroeconomic forecast Comparison with the previous forecast
More information