Tuesday, September 19 2017 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 11 hours 35 min ago
During June, Mexico received US$2,417 million in remittances, +4.5% over the same month last year. This is the largest amount from remittances registered for a month of June
In June 2017 the outstanding credit of the commercial banking sector grew at a nominal annual rate of 13.8% (7.1% real), 0.5 percentage points lower than the rate observed in the previous month (14.3%) and 2.4 points percentage points below that recorded in June 2016 (16.2%)
A rebound in household formation could lead to an increase in housing demand. The supply of new units is likely to increase to 1.4 million per year from 1.2 million currently. Building restrictions in attractive metropolitan areas will support construction activity in other areas
North Korea increased security threats after its two long-range missile tests this month, increasing tensions with US. US approved new sanctions against Russia. As a response, Russia ordered to cut 755 US diplomatic staff and it plans to seize two US diplomatic properties. The Qatar diplomatic rift has been eased off.
Overview of different resolution frameworks: comparison between Europe, US, Latam and Japan.
Our China Vulnerability Sentiment Index (CVSI) improved remarkably in July, in particular led by both SOE and Shadow Banking components. Meanwhile, the components of the Exchange Rate and Housing Vulnerability Index also rebounded from the previous low levels, now staying within the neighbourhood of natural level.
Robust stance in the economic activity continued in 2Q, according to our nowcast. Inflation will ease further in summer on top of favorable base effects before climbing up again in 3Q. The CBRT strengthened its hawkish stance by keeping its interest rates intact and having the average funding rate hover above 11.9%.
Despite a lull of moderation in April-May, China’s economic recovery has staged a comeback at mid-year. The official manufacturing PMI in July remained in the expansionary territory at 51.4 (consensus: 51.5), although slightly below the previous strong reading at 51.7. Meanwhile, Caixin China Manufacturing PMI significantly surged to 51.1 from 50.4 in the previous month。
The FOMC voted unanimously to leave its benchmark rate unchanged, between 1% and 1.25%, signaling a “relatively soon” taper of maturing Treasuries and mortgage securities reinvestments, in their July meeting
Latin America will grow this year. This is good news for the region following two consecutive years of contraction, 2015 and 2016, which followed three of slowdown due to the fall in commodity prices. BBVA Research expects the region as a whole to grow by 0.8% this year and 1.7% in 2018.
The main sources of uncertainty that have hung over Europe in recent times, such as Brexit or the wave of populism and anti-European parties, are starting to disappear, or at least have moderated. Moreover, the economic outlook has improved and we are seeing an acceleration of the economy.
Weekly economic update focusing on the major economic indicators to be released the week of July 31, 2017. Special topic: 2Q GDP
Highlights: FSB published the responses several consultations (such as internal TLAC or CCP recovery and resolution). ESAs issued advice on environmental PRIIPs. EBA published the final guidelines regarding incident reporting under PSD2. ESRB issued an opinion on the CCP recovery and resolution framework. BdE issued a consultation on DGS contributions.
Most people would agree that the current expansion cycle has been anemic. Since 2010, average real GDP growth has been 2.1%, significantly lower than 3.2% between 1992 and 2007. Over time, the cumulative difference between the two paths could be quite dramatic
Urbanization took place earlier and at faster pace than in other emerging markets in Latam and is now at advanced economies’ levels. However, in spite of displaying high urbanization rates, Latin America show relatively low levels of income, capital, labor and productivity. The region should try to leverage on their high urbanization levels to boost digitization.