Page 34 - The Indian EYE 043021

Business EYE APRIL 30, 2021 | The Indian Eye 34

From uS to asia, markets and economies

showing signs of recovery from pandemic

Rising exports are boosting some economies in developing Asia amid strengthening

global economic activity, including a rebound in manufacturing

Our Bureau risk.

New Delhi India’s GDP is expected to
expand 7 per cent in FY2022.
t may sound strange but as This year, South Asia’s GDP
the pandemic gets more growth is expected to rebound
Idangerous in India, its mar- to 9.5 per cent following a 6 per
kets continue to rise and boom. cent contraction in 2020 before
On Thursday, after three days of moderating to 6.6 per cent next
continuous rise, market bench- year.
marks sensex and Nifty ended There is good news in the
marginally higher as monthly US too as economic growth
derivatives expired amid a large- accelerated in the first quarter,
ly positive trend in global equi- fueled by massive government
ties. Metal stocks were in focus aid to households and business-
on account of sustained price es, charting the course for what
increase in ferrous and non-fer- The US economy is rebounding more quickly compared is expected will be the strongest
rous metals. Further, Reliance to its global rivals, thanks to two additional rounds of COViD-19 relief performance this year in nearly
Industries remained in focus for money from the Biden administration four decades. Gross domestic
second consecutive day ahead product increased at a 6.4% an-
of 4QFY21 results. and Taiwan, developing Asia’s Other risks include increas- nualized rate last quarter, the
Elsewhere in Asia, bours- economic activity is expected to ing geopolitical tensions, pro- Commerce Department said
es in Shanghai, Hong Kong grow 7.7 per cent this year and duction bottlenecks, financial on Thursday in its advance esti-
and Tokyo ended on a positive 5.6 per cent in 2022. turmoil from tightening finan- mate of GDP for the first three
note, while Seoul was in the red. “Growth is gaining momen- cial conditions, and long-term months of the year. That was
Bourses in Europe were largely tum across developing Asia, but scarring -- for instance, learning the second-fastest GDP growth
trading with gains in mid-ses- renewed COVID-19 outbreak losses due to school closures. pace since the third quarter of
sion deals. pose a threat to recovery,” said Most economies in develop- 2003 and followed a 4.3% rate
This is a sign of an econom- ADB Chief Economist Yasuyu- ing Asia will see healthy growth in the fourth quarter.
ic recovery which may happen ki Sawada. “Economies in the this year and in 2022. Central Economists polled by Reu-
sooner than later. region are on diverging paths. Asian economies are forecast ters had forecast GDP growth
Economic growth in devel- Their trajectories are shaped to grow 3.4 per cent on average increasing at a 6.1% pace in
oping Asia is set to rebound to by the extent of domestic out- this year and 4 per cent next the January-March period. The
7.3 per cent this year supported breaks, the pace of their vaccine year. United States’ economy is re-
by a healthy global recovery and rollouts, and how much they are Strong exports and a grad- bounding more quickly com-
early progress on coronavirus benefiting from the global re- ual recovery in household con- pared to its global rivals, thanks
disease (COVID-19) vaccines, covery.” sumption will boost economic to two additional rounds of
according to a new report from Rising exports are boosting activity in China this year. The COVID-19 relief money from
the Asian Development Bank some economies in developing country’s gross domestic prod- Washington as well as easing
(ADB). Asia amid strengthening global uct (GDP) is forecast to expand anxiety over the pandemic,
The projected resurgence economic activity, including a 8.1 per cent in 2021 and 5.5 per which has boosted domestic de-
follows a 0.2 per cent con- rebound in manufacturing. cent in 2022. East Asia’s GDP is mand and allowed services busi-
traction last year, according Progress on the production expected to grow 7.4 per cent in nesses like restaurants and bars
to ADB’s flagship economic and delivery of COVID-19 vac- 2021 and 5.1 per cent in 2022. to reopen.
publication Asian Develop- cines has contributed to this India’s economy, mean- The Federal Reserve on
ment Outlook (ADO) 2021. momentum, but the pandemic while, is expected to grow 11 per Wednesday acknowledged the
The region’s growth is forecast remains the biggest risk for the cent in fiscal year 2021 which burgeoning domestic activity,
to moderate to 5.3 per cent in region as potential delays in ends on March 31, 2022 amid a but the US central bank gave
2022. Excluding the newly in- vaccine rollouts or significant strong vaccine drive. However, no sign it was ready to reduce
dustrialized economies of Hong new outbreaks could under- the recent surge in COVID-19 its extraordinary support for the
Kong, South Korea, Singapore mine growth. cases may put this recovery at recovery.

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