Low savings, weak rating hinder recovery

Saturday, January 09, 2010
By Mansoor Ahmad

LAHORE: Numerous factors are impacting economic recovery which include very low savings rate, weak sovereign rating and absence of government’s writ to implement its decisions.

A study conducted by The News reveals savings rate in China and India is 40 per cent and 38 per cent of their gross domestic product respectively. Pakistan’s national savings rate stands at a dismal 11.8 per cent of the GDP. The Chinese and Indians have enough resources from national savings to finance their investments while Pakistan has to depend on foreign inflows to support investment.

ADB moot on lessons from global economic crisis

Saturday, January 09, 2010
By our correspondent

ISLAMABAD: Top officials from around Asia including Pakistan’s Minister for Finance Shaukat Tarin will attend an ADB sponsored two day regional conference at Manila to discuss the lessons of the global economic and financial crisis, and the policy adjustments needed to cushion the region against future shocks.

US shed 85,000 jobs in December, dampening optimism

Saturday, January 09, 2010
WASHINGTON: The US economy lost 85,000 jobs in December while the unemployment rate held at 10.0 per cent, the government said on Friday in a report dashing hopes of a turnaround in the ailing labour market.

The Labour Department report on non-farm payrolls was a disappointment to those hoping for growth in jobs, which is critical to recovery from recession. The figure was far worse than the consensus expectation for no change in overall employment levels, and came amid a wide array of predictions ranging from steep losses to modest gains.

‘World recovery not guaranteed in 2010’

Saturday, January 09, 2010
PARIS: The world economy may not emerge out of crisis in 2010 due to “bubbles” created by the huge injections of money used to keep the financial system operating, World Trade Organisation chief Pascal Lamy said on Friday.

“You have to be realistic, it is not guaranteed,” the WTO director general said on French radio when asked whether the world economy would recover in 2010.

Ireland edges out of deep recession

Friday, December 18, 2009
DUBLIN: Ireland emerged from a deep recession in the third quarter as its economy grew 0.3 per cent compared with the previous three months, official data showed on Thursday.

The joy was dampened however by data showing gross domestic product (GDP) had still shrunk 7.4 per cent in the three months to September compared with the same period of 2008.

“Initial estimates ... on a seasonally adjusted basis, for the third quarter of 2009 show ... a small increase of 0.3 per cent in GDP compared with the previous quarter,” the Central Statistics Office (CSO) said in a statement. Ireland’s former roaring Celtic Tiger economy tumbled into a fierce recession during the first half of 2008, becoming the first eurozone nation to do so as the global crisis undid years of progress and development.

Gold falls 2pc

Tuesday, December 08, 2009
LONDON: Gold prices fell 2 per cent to session lows in Europe on Monday, on selling prompted by the dollar’s rise to a five-week high versus the euro following above-consensus jobs data in the previous session.

Spot gold and was bid at $1,147.85 an ounce at 1031 GMT, against $1,159.55 late in New York on Friday. Earlier it hit a two-week low of $1,135.80 an ounce, but quickly bounced. Friday’s much better than expected non-farm payrolls data prompted speculation the US Federal Reserve may lift interest rates from their current historic lows sooner rather than later, which could help the dollar and cut support for gold.

Gold falls by Rs1,250 to Rs37,450 a tola

Sunday, December 06, 2009
By Samia Saleem

KARACHI: In one of the most significant crashes after months of continuous hike the bullion markets fell down to Rs37,450 per tola after a decrease of Rs1,250 on Saturday.

Gold prices fell due to stability in the value of dollar after the US banks increased their interest rates told Haji Haroon Chand, President of All Sindh Saaraf and Jewellers Association.

Gold takes a hit

Saturday, December 05, 2009
LONDON: Gold slid below $1,180 a troy ounce on Friday as the dollar rose on a stronger than expected US employment report that raised sentiment on growth and dented gold as a currency hedge.

Spot gold fell 2.6 per cent to $1,174.70 a troy ounce and was bid at $1,178.50 an ounce at 1601 GMT compared with $1,207.10 late in New York on Thursday.

World Bank chief says Asia to have key role in recovery

Friday, December 04, 2009
NEW DELHI: Asia will have to play a bigger part in the global recovery than in previous downturns as US consumers are cash-strapped, World Bank chief Robert Zoellick said in an interview published on Thursday.

Zoellick told the Financial Times it was difficult to see US consumers assuming the same role as demand drivers that they have in previous economic recoveries because they have to pay off debts and improve their finances.

UN sees slow 2010 global recovery, double-dip risk

Thursday, December 03, 2009
UNITED NATIONS: The United Nations on Wednesday predicted a fragile world economic recovery next year from a two-year crisis and said the risk remained of a “double-dip” recession.

Stimulus packages deployed by many rich nations had played a large part in ending the downturn that began in 2007 and that has been widely blamed on the collapse of a global housing bubble, said a report by the UN economic division.