The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier.

"Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17," the CSO said.

Earlier, the CSO in its advance estimate had pegged the GDP growth rate for 2018-19 at 7.2 per cent.

"The First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on 31st May, 2018," said the Central Statistics Office (CSO).

The CSO has also released the Second Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17.

During 2017-18, the growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (comprising manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier. "Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier. "Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17," the CSO said. Earlier, the CSO in its advance estimate had pegged the GDP growth rate for 2018-19 at 7.2 per cent. "The First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on 31st May, 2018," said the Central Statistics Office (CSO). The CSO has also released the Second Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17. During 2017-18, the growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (comprising manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.

GDP growth rate for 2017-18 revised upwards to 7.2%

Unmistakable signs of an economic slowdown in the Gulf have started causing concern in our own country. After decades of carefree spending and burgeoning development cutbacks and laydowns have transmitted tremor waves signalling unprecedented threats. It may be premature to reach the conclusion that the boom has turned to bust but apprehensions about mutually beneficial shared future are not unjustified.

A quick look at the map reminds us how close UAE is. It is bordered by Saudi Arab to the West, Iran, Qatar and opens out to the Persian. It is buffeted by the power struggle between Iran and Saudi Arab and can't remain unaffected by the long-raging strife in the middle east-Iraq and Syria. What has eroded the wealth and self-confidence of the Sheikhs is a steady fall in oil and gas prices. When even Saudi Arabia is feeling the painful pinch the UAE can’t remain in denial. The era of tax-free incomes is over. Cuts in government spending have resulted in a sharp fall in real estate prices and rentals. Expensive and expansive plans for ambitious pursuit of grandeur are no longer on the anvil.

It is estimated that over 90 per cent of the population of UAE is immigrants most of them South Asians. Remittances from those working ‘overseas’ in the Gulf have in recent years contributed significantly to our foreign exchange reserves and also have had a very significant effect on living standards in villages in states like Kerala and Tamil Nadu that have been major beneficiaries of the economic boom

Though Indians have traded with Arabs for millennia- much before the advent of Islam- very few Indians recognise the seven sultanates that comprise the United Arab Emirates as neighbours. What is quite ironical as ‘Duty-Free’ Dubai and Affluent Laid Back Abu Dhabi are among the most popular destinations for well healed Indian tourists and immigrants in search of lucrative jobs.&nbsp;

Doctors, engineers, managers, journalists and accountants along with skilled and unskilled workers have found a semi-permanent home away from home in the Gulf. The looming economic crisis has resulted in their dreams suddenly turning into a nightmare.&nbsp;

Till the mid-1960s these sultanates were British Protectorate and known as the Trucial States. Since then their transformation has been dramatic. From backward colonial dependencies in a desert wasteland, the Federation of Gulf states has emerged as a bustling hub of financial activity and a region of geopolitical significance. Indians, Nepali, Bangladeshi not to forget Pakistani have flocked to the Eldorado in the Gulf.

One Day Cricket, the popularity of Bollywood films have forged a strong bilateral relationship. But for those living in the Hindi Heartland, the UAE in recent past has registered as a blip on the mental radar where the dreaded gangster Dawood Ibrahim was holed up beyond the reach of Indian law enforcement agencies. It is difficult to understand the lack of awareness and interest in what for all practical purposes is a proximate neighbourhood of economic and strategic significance.&nbsp;

Perceptions need to change and fast. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Unmistakable signs of an economic slowdown in the Gulf have started causing concern in our own country. After decades of carefree spending and burgeoning development cutbacks and laydowns have transmitted tremor waves signalling unprecedented threats.

Unmistakable signs of an economic slowdown in the Gulf have started causing concern in our own country. After decades of carefree spending and burgeoning development cutbacks and laydowns have transmitted tremor waves signalling unprecedented threats. It may be premature to reach the conclusion that the boom has turned to bust but apprehensions about mutually beneficial shared future are not unjustified. A quick look at the map reminds us how close UAE is. It is bordered by Saudi Arab to the West, Iran, Qatar and opens out to the Persian. It is buffeted by the power struggle between Iran and Saudi Arab and can't remain unaffected by the long-raging strife in the middle east-Iraq and Syria. What has eroded the wealth and self-confidence of the Sheikhs is a steady fall in oil and gas prices. When even Saudi Arabia is feeling the painful pinch the UAE can’t remain in denial. The era of tax-free incomes is over. Cuts in government spending have resulted in a sharp fall in real estate prices and rentals. Expensive and expansive plans for ambitious pursuit of grandeur are no longer on the anvil. It is estimated that over 90 per cent of the population of UAE is immigrants most of them South Asians. Remittances from those working ‘overseas’ in the Gulf have in recent years contributed significantly to our foreign exchange reserves and also have had a very significant effect on living standards in villages in states like Kerala and Tamil Nadu that have been major beneficiaries of the economic boom Though Indians have traded with Arabs for millennia- much before the advent of Islam- very few Indians recognise the seven sultanates that comprise the United Arab Emirates as neighbours. What is quite ironical as ‘Duty-Free’ Dubai and Affluent Laid Back Abu Dhabi are among the most popular destinations for well healed Indian tourists and immigrants in search of lucrative jobs. Doctors, engineers, managers, journalists and accountants along with skilled and unskilled workers have found a semi-permanent home away from home in the Gulf. The looming economic crisis has resulted in their dreams suddenly turning into a nightmare. Till the mid-1960s these sultanates were British Protectorate and known as the Trucial States. Since then their transformation has been dramatic. From backward colonial dependencies in a desert wasteland, the Federation of Gulf states has emerged as a bustling hub of financial activity and a region of geopolitical significance. Indians, Nepali, Bangladeshi not to forget Pakistani have flocked to the Eldorado in the Gulf. One Day Cricket, the popularity of Bollywood films have forged a strong bilateral relationship. But for those living in the Hindi Heartland, the UAE in recent past has registered as a blip on the mental radar where the dreaded gangster Dawood Ibrahim was holed up beyond the reach of Indian law enforcement agencies. It is difficult to understand the lack of awareness and interest in what for all practical purposes is a proximate neighbourhood of economic and strategic significance. Perceptions need to change and fast. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Assessing the impact of economic slowdown in Gulf on India

US&nbspretail sales increased more than expected in May as consumers bought motor vehicles and a range of other goods even as they paid more for gasoline, the latest indication of an acceleration in economic growth in the second quarter.

Other data on Thursday showed a further tightening in labor market conditions, with first-time applications for unemployment benefits unexpectedly falling last week and the number of Americans on jobless rolls declining to a near 44-1/2-year low.

The reports came a day after the Federal Reserve raised interest rates for a second time this year and offered an upbeat assessment of the economy. The US&nbspcentral bank described economic activity as "rising at a solid rate" and the labor market as continuing to "strengthen." The Fed forecast two more rate hikes in the second half of 2018.

"In short, the Fed was right to upgrade its assessment of economic growth to 'solid' in yesterday's statement," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.

The Commerce Department said retail sales jumped 0.8 percent last month, the biggest advance since November 2017. Data for April was revised up to show sales rising 0.4 percent instead of the previously reported 0.2 percent gain.

Economists polled by Reuters had forecast retail sales rising 0.4 percent in May. Retail sales in May increased 5.9 percent from a year ago.

Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.5 percent last month after an upwardly revised 0.6 percent increase in April. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. They were previously reported to have risen 0.5 percent in April.

The strong retail sales report added to data ranging from the labor market to manufacturing and trade in suggesting the economy was regaining momentum in the second quarter after growth slowed at the start of the year amid a sharp step-down in consumer spending.

Growth estimates for the April-June quarter are as high as a 4.6 percent annualized rate. The economy grew at a 2.2 percent rate in the first quarter.

The dollar extended gains versus a basket of currencies after the data while prices for US&nbspTreasuries fell. US&nbspstock index futures were trading higher.

&nbsp

TIGHT LABOR MARKET

Retail sales are being underpinned by a robust labor market, which is gradually boosting wage growth. In a separate report on Thursday, the Labor Department said initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 218,000 for the week ended June 9.

Economists polled by Reuters had forecast claims rising to 224,000 in the latest week. The number of people receiving benefits after an initial week of aid declined 49,000 to 1.70 million in the week ended June 2, the lowest level since December 1973.

The labor market is considered to be close to or at full employment, with the jobless rate at an 18-year low of 3.8 percent. The unemployment rate has dropped by three-tenths of a percentage point this year. It is near the Fed's forecast of 3.6 percent by the end of this year.

Layoffs have remained very low amid signs of growing worker shortages across all sectors of the economy. The were a record 6.7 million job openings in April. The number of unemployed people per vacancy slipped to 0.9 from 1.0 in March, indicating that most people looking for a job are likely to find one.

Retail sales in May were boosted by a 0.5 percent rise in receipts at auto dealerships. Auto sales rose 0.2 percent in April. Sales at service stations surged 2.0 percent last month, reflecting higher gasoline prices.

Prices at the pump have risen by 15.5 percent this year, according to U.S. Energy Information Administration data. Expensive gasoline, if sustained, could pull spending away from other categories.

Sales at building material stores rebounded 2.4 percent last month after declining 0.8 percent in April. Receipts at clothing stores surged 1.3 percent, the largest gain since March 2017.

Sales at restaurants and bars jumped 1.3 percent, the biggest rise since January 2017. There were also increases in online retail sales, but receipts at furniture stores fell 2.4 percent, the largest drop since December 2013.

Americans also continued to cut back on spending on sport and hobbies. Sales at sporting goods, hobby and musical instrument and book stores fell 1.1 percent after slipping 0.2 percent in April.

The Commerce Department said retail sales jumped 0.8 percent last month, the biggest advance since November 2017

US&nbspretail sales increased more than expected in May as consumers bought motor vehicles and a range of other goods even as they paid more for gasoline, the latest indication of an acceleration in economic growth in the second quarter. Other data on Thursday showed a further tightening in labor market conditions, with first-time applications for unemployment benefits unexpectedly falling last week and the number of Americans on jobless rolls declining to a near 44-1/2-year low. The reports came a day after the Federal Reserve raised interest rates for a second time this year and offered an upbeat assessment of the economy. The US&nbspcentral bank described economic activity as "rising at a solid rate" and the labor market as continuing to "strengthen." The Fed forecast two more rate hikes in the second half of 2018. "In short, the Fed was right to upgrade its assessment of economic growth to 'solid' in yesterday's statement," said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto. The Commerce Department said retail sales jumped 0.8 percent last month, the biggest advance since November 2017. Data for April was revised up to show sales rising 0.4 percent instead of the previously reported 0.2 percent gain. Economists polled by Reuters had forecast retail sales rising 0.4 percent in May. Retail sales in May increased 5.9 percent from a year ago. Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.5 percent last month after an upwardly revised 0.6 percent increase in April. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. They were previously reported to have risen 0.5 percent in April. The strong retail sales report added to data ranging from the labor market to manufacturing and trade in suggesting the economy was regaining momentum in the second quarter after growth slowed at the start of the year amid a sharp step-down in consumer spending. Growth estimates for the April-June quarter are as high as a 4.6 percent annualized rate. The economy grew at a 2.2 percent rate in the first quarter. The dollar extended gains versus a basket of currencies after the data while prices for US&nbspTreasuries fell. US&nbspstock index futures were trading higher. TIGHT LABOR MARKET Retail sales are being underpinned by a robust labor market, which is gradually boosting wage growth. In a separate report on Thursday, the Labor Department said initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 218,000 for the week ended June 9. Economists polled by Reuters had forecast claims rising to 224,000 in the latest week. The number of people receiving benefits after an initial week of aid declined 49,000 to 1.70 million in the week ended June 2, the lowest level since December 1973. The labor market is considered to be close to or at full employment, with the jobless rate at an 18-year low of 3.8 percent. The unemployment rate has dropped by three-tenths of a percentage point this year. It is near the Fed's forecast of 3.6 percent by the end of this year. Layoffs have remained very low amid signs of growing worker shortages across all sectors of the economy. The were a record 6.7 million job openings in April. The number of unemployed people per vacancy slipped to 0.9 from 1.0 in March, indicating that most people looking for a job are likely to find one. Retail sales in May were boosted by a 0.5 percent rise in receipts at auto dealerships. Auto sales rose 0.2 percent in April. Sales at service stations surged 2.0 percent last month, reflecting higher gasoline prices. Prices at the pump have risen by 15.5 percent this year, according to U.S. Energy Information Administration data. Expensive gasoline, if sustained, could pull spending away from other categories. Sales at building material stores rebounded 2.4 percent last month after declining 0.8 percent in April. Receipts at clothing stores surged 1.3 percent, the largest gain since March 2017. Sales at restaurants and bars jumped 1.3 percent, the biggest rise since January 2017. There were also increases in online retail sales, but receipts at furniture stores fell 2.4 percent, the largest drop since December 2013. Americans also continued to cut back on spending on sport and hobbies. Sales at sporting goods, hobby and musical instrument and book stores fell 1.1 percent after slipping 0.2 percent in April.

US retail sales surge in May; weekly jobless claims fall

India's GDP growth is likely to cross 8 per cent in the next two years and the government is taking a number of steps including formulation of a new industrial policy to double the economy's size to USD 5 trillion in 7-8 years, Commerce Minister Suresh Prabhu said on Friday.

"We are working on few strategies to boost economic growth. We are now seeing an upsurge," he told reporters here while talking about the achievements of the government during the last four years.

Prabhu exuded confidence that the growth in 2018-19 will be better than the preceding fiscal.

"I should not be surprised that in the next few quarters, say next 2 years for sure, we will be very close to or cross 8 per cent growth and that is coming out of strong performance of so many sectors," he said.

India's GDP grew at the fastest pace in seven quarters at 7.7 per cent in the January-March quarter of last fiscal, retaining the fastest growing major economy tag on robust performance by manufacturing and service sectors as well as good farm output.

On yearly basis, however, it grew at a four-year low of 6.7 per cent in 2017-18, down from 7.1 per cent in the previous fiscal.

Prabhu said that to facilitate the 8 per cent potential growth, the government is working on several areas including formulation of a new industrial policy, "which is going to make India ready for the fourth industrial revolution and beyond".

"We have created a vision for USD 5 trillion economy in which USD one trillion will come from manufacturing, USD 3 trillion from services and USD one trillion agriculture and allied sector," he added.

When asked about the impact of the RBI's decision this week to raise the benchmark lending rate by 0.25 per cent, the minister said: "I do not think it should hamper investments".

On his US visit next week, Prabhu said that he would meet his counterpart and industry leaders and raise India's concerns about tightening visa regime in the US and its impact on Indian IT sector.

"We will be raising the visa issue because we feel that Indians and their spouses are facing some issues there," he said, adding, "we will explaining our position. It is not a formal trade talk..There is no huge expectations".

On the US challenging India's export support programmes, Prabhu said he would explain that those measures are not subsidies and instead ways to partially offset various additional costs incurred by them.

"Our export support regime is not violating any of the WTO rules," he said.

"We are also working to make sure that there is a proper clarity on this. But what we are doing today is not violating any WTO rule," he added.

On the proposed mega trade deal - Regional Comprehensive Economic Partnership (RCEP), Prabhu said India is actively engaged in the negotiations and also holding bilateral talks with member countries including China, Australia and New Zealand.

"What we are saying in RCEP is that it is a comprehensive economic partnership pact and in this services should be an integral part of the agreement," he added.

Prabhu exuded confidence that the growth in 2018-19 will be better than the preceding fiscal.

India's GDP growth is likely to cross 8 per cent in the next two years and the government is taking a number of steps including formulation of a new industrial policy to double the economy's size to USD 5 trillion in 7-8 years, Commerce Minister Suresh Prabhu said on Friday. "We are working on few strategies to boost economic growth. We are now seeing an upsurge," he told reporters here while talking about the achievements of the government during the last four years. Prabhu exuded confidence that the growth in 2018-19 will be better than the preceding fiscal. "I should not be surprised that in the next few quarters, say next 2 years for sure, we will be very close to or cross 8 per cent growth and that is coming out of strong performance of so many sectors," he said. India's GDP grew at the fastest pace in seven quarters at 7.7 per cent in the January-March quarter of last fiscal, retaining the fastest growing major economy tag on robust performance by manufacturing and service sectors as well as good farm output. On yearly basis, however, it grew at a four-year low of 6.7 per cent in 2017-18, down from 7.1 per cent in the previous fiscal. Prabhu said that to facilitate the 8 per cent potential growth, the government is working on several areas including formulation of a new industrial policy, "which is going to make India ready for the fourth industrial revolution and beyond". "We have created a vision for USD 5 trillion economy in which USD one trillion will come from manufacturing, USD 3 trillion from services and USD one trillion agriculture and allied sector," he added. When asked about the impact of the RBI's decision this week to raise the benchmark lending rate by 0.25 per cent, the minister said: "I do not think it should hamper investments". On his US visit next week, Prabhu said that he would meet his counterpart and industry leaders and raise India's concerns about tightening visa regime in the US and its impact on Indian IT sector. "We will be raising the visa issue because we feel that Indians and their spouses are facing some issues there," he said, adding, "we will explaining our position. It is not a formal trade talk..There is no huge expectations". On the US challenging India's export support programmes, Prabhu said he would explain that those measures are not subsidies and instead ways to partially offset various additional costs incurred by them. "Our export support regime is not violating any of the WTO rules," he said. "We are also working to make sure that there is a proper clarity on this. But what we are doing today is not violating any WTO rule," he added. On the proposed mega trade deal - Regional Comprehensive Economic Partnership (RCEP), Prabhu said India is actively engaged in the negotiations and also holding bilateral talks with member countries including China, Australia and New Zealand. "What we are saying in RCEP is that it is a comprehensive economic partnership pact and in this services should be an integral part of the agreement," he added.

Economic growth may cross 8% in next 2 years: Suresh Prabhu

The Indian economy slowed down in 2016-17, with the gross domestic product declining drastically from 8 per cent in 2015-16 to 7.1 per cent the next year, government said on Friday.

Finance Minister Arun Jaitley said the slower economic growth reflected lower growth in the industry and the services sectors, due to a number of factors including structural, external, fiscal and monetary factors.

He said in the Lok Sabha that the lower rate of global economic growth in 2016, along with a reduction in gross fixed investment to GDP ratio, stressed balance sheets of the corporate sector, lower credit growth in industry sector were some of the reasons for the low growth rate in 2016-17.

&quot;Slower growth in 2016-17 reflects lower growth in industry and services sector. Economic growth of a country depends on a number of factors including structural, external, fiscal and monetary factors,&quot; he said during Question Hour.

As per the latest estimates from Central Statistics Office, the growth rate of Gross Domestic Product (GDP) at constant prices was 7.5 per cent, 8.0 per cent and 7.1 per cent respectively in 2014-15, 2015-16 and 2016-17.

The growth in GDP at constant market prices was 5.7 per cent and 6.3 per cent in Quarter 1 (Q1) and Quarter 2 (Q2) of 2017-18 respectively.

Jaitley claimed that despite the slowdown, as per the IMF, India was the fastest growing major economy in 2016 and second fastest growing major economy in 2017 in the world.

He said the government has taken various initiatives to boost the growth of the economy, including giving a fillip to manufacturing, concrete measures for transport and power sectors as well as other urban and rural infrastructure, comprehensive reforms in the foreign direct investment policy and special package for textile industry.

The minister said the government had also announced various measures in the 2017-18 budget to promote growth which included a push to infrastructure development by giving infrastructure status to affordable housing, higher allocation to highway construction and focus on coastal connectivity.

&quot;For highways development, the Bharatmala Pariyojana has been launched. The government has launched a phased programme for bank recapitalisation. This entails infusion of capital to the public sector banks, that is expected to encourage banks to enhance lending,&quot; he said.

Jaitley said the Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution in a time bound manner.

He said the other growth promotion measures included lower income tax for companies with annual turnover up to Rs. 50 crore, further measures to improve the ease of doing business, and a major push to the digital economy.

Jaitley said as per information available from Reserve Bank of India, the gross bank credit (outstanding) for agriculture and allied sectors was Rs. 9,923.87 billion as of 2016-17 as against Rs. 8,829.42 billion as on 2015-16.

&quot;The introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities,&quot; he added.

Finance Minister Arun Jaitley said the slower economic growth reflected lower growth in the industry and the services sectors

The Indian economy slowed down in 2016-17, with the gross domestic product declining drastically from 8 per cent in 2015-16 to 7.1 per cent the next year, government said on Friday. Finance Minister Arun Jaitley said the slower economic growth reflected lower growth in the industry and the services sectors, due to a number of factors including structural, external, fiscal and monetary factors. He said in the Lok Sabha that the lower rate of global economic growth in 2016, along with a reduction in gross fixed investment to GDP ratio, stressed balance sheets of the corporate sector, lower credit growth in industry sector were some of the reasons for the low growth rate in 2016-17. "Slower growth in 2016-17 reflects lower growth in industry and services sector. Economic growth of a country depends on a number of factors including structural, external, fiscal and monetary factors," he said during Question Hour. As per the latest estimates from Central Statistics Office, the growth rate of Gross Domestic Product (GDP) at constant prices was 7.5 per cent, 8.0 per cent and 7.1 per cent respectively in 2014-15, 2015-16 and 2016-17. The growth in GDP at constant market prices was 5.7 per cent and 6.3 per cent in Quarter 1 (Q1) and Quarter 2 (Q2) of 2017-18 respectively. Jaitley claimed that despite the slowdown, as per the IMF, India was the fastest growing major economy in 2016 and second fastest growing major economy in 2017 in the world. He said the government has taken various initiatives to boost the growth of the economy, including giving a fillip to manufacturing, concrete measures for transport and power sectors as well as other urban and rural infrastructure, comprehensive reforms in the foreign direct investment policy and special package for textile industry. The minister said the government had also announced various measures in the 2017-18 budget to promote growth which included a push to infrastructure development by giving infrastructure status to affordable housing, higher allocation to highway construction and focus on coastal connectivity. "For highways development, the Bharatmala Pariyojana has been launched. The government has launched a phased programme for bank recapitalisation. This entails infusion of capital to the public sector banks, that is expected to encourage banks to enhance lending," he said. Jaitley said the Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution in a time bound manner. He said the other growth promotion measures included lower income tax for companies with annual turnover up to Rs. 50 crore, further measures to improve the ease of doing business, and a major push to the digital economy. Jaitley said as per information available from Reserve Bank of India, the gross bank credit (outstanding) for agriculture and allied sectors was Rs. 9,923.87 billion as of 2016-17 as against Rs. 8,829.42 billion as on 2015-16. "The introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities," he added.

India's economic growth slowed down in 2016-17: Finance Minister Arun Jaitley

After announcing the next-generation Snapdragon 845 SoC at the Snapdragon Tech Summit 2017 in Maui, Hawaii, Qualcomm&nbsp;has today detailed the features of the new mobile platform. The new chipset is based on the 10nm FinFET process with big.LITTLE architecture. Qualcomm has already mentioned that the new chipsets will be manufactured by Samsung Foundry. Here are the changes that the new chipset brings over last year&rsquo;s Snapdragon 835 SoC.

Kryo 385 CPU

The key enhancements over Snapdragon 835 comes in the form of better battery life and faster performance. The chipset is manufactured using Samsung&rsquo;s second-gen 10nm LPP FinFET process. The Kryo CPU architecture includes four performance cores (Cortex A75) clocked up to 2.8GHz with up to 30 percent performance improvement over Snapdragon 835. These performance cores are paired with four efficiency cores (Cortex A55) clocked at 1.8GHz, which Qualcomm says is 30 percent more energy efficient compared to its predecessor.

The Snapdragon 845 SoC comes with Quick Charge 4 support, which Qualcomm claims can take the battery from empty to 50 percent in 15 minutes. Also, on full charge, the chipmaker says that smartphones powered by Snapdragon 845 SoC can offer around four hours of Ultra HD 4K video playback, up to three hours of immersive unwired VR usage, and talk time of up to two days on VoLTE.

Adreno 630 GPU

The Snapdragon 845 SoC is paired with the Adreno 630 GPU, which Qualcomm says is faster and more efficient in processing. The new GPU is designed to offer 30 percent faster graphics, 30 percent improved energy efficiency and 2.5 times faster display throughput. It will also support 2K + 2K 120fps XR for virtual and augmented reality devices.

X20 LTE modem

The X20 is Qualcomm&rsquo;s second-generation Gigabit LTE modem with TrueWireless connectivity. It is designed to over 20 percent improvement over X16 modem on the Snapdragon 835 SoC. The X20 modem can offer maximum speeds of up to 1.2Gbps over 12 streams. It comes with 5 carrier aggregation with 4&times;4 MIMO technology. So, what do these specifications mean? Well, it can offer faster upload and download data speeds on upcoming 5G networks.

It also supports multi-Gigabit Wi-Fi with 60GHz range with ad baseband. The modem also supports Wi-Fi 802.11ac for 16 times faster connection setup and 30 percent efficiency. The X20 modem on the Snapdragon 845 SoC now supports dual-SIM 4G connectivity and Dual-VoLTE on both SIMs. It also comes with advanced Bluetooth capabilities to broadcast HD quality music or live audio to connect to multiple devices. Also, the modem is designed to consume 50 percent less power when using wireless earbuds.

Camera

The Snapdragon 845 SoC comes with Hexagon 685 DSP and Spectra 280 ISP (Image Signal Processing) for improved photography. The smartphone camera will also support capturing Ultra HD Premium videos at 60fps. Qualcomm has also made improvements to the ISP to correct the color gamut, color depth and luminance to make your captured photos look more lifelike.

It basically helps to correct the color volume, dynamic range and improve the banding. The new chipset will also support slow-motion video capture at 720p in HDR10 format, with a frame rate of 480fps. The chipset will also consume 30 percent less power when recording videos.

Most smartphones today come with dual-camera setups and they allow capturing photos with DSLR-like bokeh effects. The new Snapdragon chipset comes with &lsquo;Computer Vision&rsquo; for depth mapping and to add the depth-of-field effects even when using a single camera. It also supports Face scanning for biometric authentication and security.

Artificial Intelligence

Artificial Intelligence and Machine Learning (ML) is everywhere today, right from finance to healthcare, entertainment, insurance, and transportation. The Snapdragon 845 SoC is the third generation mobile AI platform from Qualcomm. With the new chipset, Qualcomm is moving intelligence from cloud to edge to improve low latency, privacy and reliability.

With AI integration, Qualcomm wants to offer richer and more personalized experiences. It works with multiple platforms, such as Android, Linux and Windows, and Qualcomm is working with a number of partners such as Facebook, Google, Amazon Alexa, Baidu, and more for improved experiences.

AI on Snapdragon 845 comes with features such as speech recognition, object detection, face recognition, single camera bokeh effects to your camera photos, landmark detection, malware detection and more.

Security

The security architecture on the Snapdragon 845 SoC comes with a secure vault. It is hardware based and comes with its own Secure Processing Unit to keep your photos, videos, content and other details safe and secure. We have moved from typing passwords to fingerprint scanning, iris scanning and face scanning biometric authentication systems. And because biometrics is important to us from a privacy viewpoint, the data is encrypted and validated in the secure processing unit, thus keeping it secure. Also, with mobile payments becoming increasingly mainstream, the integration of secure vault in the chipset will enable higher level of security of your biometrics.

Disclaimer: The correspondent Ritesh Bendre is in Maui, Hawaii on Qualcomm&rsquo;s invite. Qualcomm paid for his travel and accommodation in Hawaii. The article was originally published in BGR.in, <a href="http://www.bgr.in/features/qualcomm-snapdragon-845-soc-with-kryo-385-cpu-x20-lte-modem-ai-capabilities-launched/">click here</a> to read it.

Gujarat tops the list with more than three-fourths of its working population in the informal sector being blatantly vulnerable

After announcing the next-generation Snapdragon 845 SoC at the Snapdragon Tech Summit 2017 in Maui, Hawaii, Qualcomm has today detailed the features of the new mobile platform. The new chipset is based on the 10nm FinFET process with big.LITTLE architecture. Qualcomm has already mentioned that the new chipsets will be manufactured by Samsung Foundry. Here are the changes that the new chipset brings over last year’s Snapdragon 835 SoC. Kryo 385 CPU The key enhancements over Snapdragon 835 comes in the form of better battery life and faster performance. The chipset is manufactured using Samsung’s second-gen 10nm LPP FinFET process. The Kryo CPU architecture includes four performance cores (Cortex A75) clocked up to 2.8GHz with up to 30 percent performance improvement over Snapdragon 835. These performance cores are paired with four efficiency cores (Cortex A55) clocked at 1.8GHz, which Qualcomm says is 30 percent more energy efficient compared to its predecessor. The Snapdragon 845 SoC comes with Quick Charge 4 support, which Qualcomm claims can take the battery from empty to 50 percent in 15 minutes. Also, on full charge, the chipmaker says that smartphones powered by Snapdragon 845 SoC can offer around four hours of Ultra HD 4K video playback, up to three hours of immersive unwired VR usage, and talk time of up to two days on VoLTE. Adreno 630 GPU The Snapdragon 845 SoC is paired with the Adreno 630 GPU, which Qualcomm says is faster and more efficient in processing. The new GPU is designed to offer 30 percent faster graphics, 30 percent improved energy efficiency and 2.5 times faster display throughput. It will also support 2K + 2K 120fps XR for virtual and augmented reality devices. X20 LTE modem The X20 is Qualcomm’s second-generation Gigabit LTE modem with TrueWireless connectivity. It is designed to over 20 percent improvement over X16 modem on the Snapdragon 835 SoC. The X20 modem can offer maximum speeds of up to 1.2Gbps over 12 streams. It comes with 5 carrier aggregation with 4×4 MIMO technology. So, what do these specifications mean? Well, it can offer faster upload and download data speeds on upcoming 5G networks. It also supports multi-Gigabit Wi-Fi with 60GHz range with ad baseband. The modem also supports Wi-Fi 802.11ac for 16 times faster connection setup and 30 percent efficiency. The X20 modem on the Snapdragon 845 SoC now supports dual-SIM 4G connectivity and Dual-VoLTE on both SIMs. It also comes with advanced Bluetooth capabilities to broadcast HD quality music or live audio to connect to multiple devices. Also, the modem is designed to consume 50 percent less power when using wireless earbuds. Camera The Snapdragon 845 SoC comes with Hexagon 685 DSP and Spectra 280 ISP (Image Signal Processing) for improved photography. The smartphone camera will also support capturing Ultra HD Premium videos at 60fps. Qualcomm has also made improvements to the ISP to correct the color gamut, color depth and luminance to make your captured photos look more lifelike. It basically helps to correct the color volume, dynamic range and improve the banding. The new chipset will also support slow-motion video capture at 720p in HDR10 format, with a frame rate of 480fps. The chipset will also consume 30 percent less power when recording videos. Most smartphones today come with dual-camera setups and they allow capturing photos with DSLR-like bokeh effects. The new Snapdragon chipset comes with ‘Computer Vision’ for depth mapping and to add the depth-of-field effects even when using a single camera. It also supports Face scanning for biometric authentication and security. Artificial Intelligence Artificial Intelligence and Machine Learning (ML) is everywhere today, right from finance to healthcare, entertainment, insurance, and transportation. The Snapdragon 845 SoC is the third generation mobile AI platform from Qualcomm. With the new chipset, Qualcomm is moving intelligence from cloud to edge to improve low latency, privacy and reliability. With AI integration, Qualcomm wants to offer richer and more personalized experiences. It works with multiple platforms, such as Android, Linux and Windows, and Qualcomm is working with a number of partners such as Facebook, Google, Amazon Alexa, Baidu, and more for improved experiences. AI on Snapdragon 845 comes with features such as speech recognition, object detection, face recognition, single camera bokeh effects to your camera photos, landmark detection, malware detection and more. Security The security architecture on the Snapdragon 845 SoC comes with a secure vault. It is hardware based and comes with its own Secure Processing Unit to keep your photos, videos, content and other details safe and secure. We have moved from typing passwords to fingerprint scanning, iris scanning and face scanning biometric authentication systems. And because biometrics is important to us from a privacy viewpoint, the data is encrypted and validated in the secure processing unit, thus keeping it secure. Also, with mobile payments becoming increasingly mainstream, the integration of secure vault in the chipset will enable higher level of security of your biometrics. Disclaimer: The correspondent Ritesh Bendre is in Maui, Hawaii on Qualcomm’s invite. Qualcomm paid for his travel and accommodation in Hawaii. The article was originally published in BGR.in, click here to read it.

Opinion: Gujarat is prosperous, but where is the job security

The Reserve Bank of India (RBI) looks set to keep its policy rate on hold on Wednesday after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus.

All but two of 54 analysts in a Reuters Poll said the repo rate would be left at 6.00 per cent, the lowest since November 2010.

In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held. On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58 per cent in October. That&rsquo;s low by Indian standards, but not far from the central bank&rsquo;s 4 per cent target.

Another source of RBI discomfort is that core inflation, which excludes food and energy prices, has remained stubbornly high at around 4.5 per cent.

The central bank is likely to reiterate a &ldquo;neutral&rdquo; stance, thus giving itself the flexibility to cut rates in February, even though only seven of the 48 analysts in the Reuters poll who gave a view on 2018&rsquo;s first meeting expect that outcome.

Last week, there was welcome news of a recovery in annual economic growth in July-September to 6.3 per cent, from 5.7 per cent the previous quarter.

&ldquo;The recovery is a source of comfort to the RBI as it lowers pressure on them to take a growth-supportive stance,&rdquo; said Radhika Rao, an economist at DBS in Singapore.

But the latest pace is still well below the 8 per cent level India needs to create millions of jobs each year for youths.

Calls for a Cut

That has sparked renewed calls from some government officials for the RBI, which has cut the repo rate by 200 bps since January 2015, to trim again.

While analysts rule out a cut now, some say the central bank could soften its tone somewhat and sound more accommodative.&nbsp;

&ldquo;We don&rsquo;t expect the tone to be outright hawkish as the RBI might need to trim down its growth projections for FY18, which at current levels is optimistic,&rdquo; said Rao, who expects a hold on Wednesday and in February. &ldquo;But they would still sound cautious on inflation and positive on growth.&rdquo;

The RBI&rsquo;s course will likely be determined by inflation, which in October it projected would accelerate to 4.2 to 4.6 per cent in the six months to March, driven by multiple factors including planned pay hikes for government employees.

The central bank is also likely to be concerned that the government may have a wider fiscal deficit in the fiscal year ending in March than the 3.2 per cent target, raising the prospect New Delhi may have to sell more bonds.

Those fears, plus the prospect they would further reduce the scope to cut rates amid accelerating inflation, have sent benchmark 10-year bonds sharply lower since the RBI cut the repo rate on August 2, with the yield up more than 60 bps.

The uncertainty about India&rsquo;s fiscal management is being further exacerbated as the government is due to unveil its budget for the next fiscal year in early February, before the RBI&rsquo;s next meeting.

The government&rsquo;s prudent fiscal management helped the country earn a much-desired rating upgrade from Moody&rsquo;s Investors Service last month.

Still, some analysts are worried New Delhi could crank up spending next year as it seeks to boost its re-election chances in 2019.

On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58 per cent in October

The Reserve Bank of India (RBI) looks set to keep its policy rate on hold on Wednesday after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus. All but two of 54 analysts in a Reuters Poll said the repo rate would be left at 6.00 per cent, the lowest since November 2010. In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held. On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58 per cent in October. That’s low by Indian standards, but not far from the central bank’s 4 per cent target. Another source of RBI discomfort is that core inflation, which excludes food and energy prices, has remained stubbornly high at around 4.5 per cent. The central bank is likely to reiterate a “neutral” stance, thus giving itself the flexibility to cut rates in February, even though only seven of the 48 analysts in the Reuters poll who gave a view on 2018’s first meeting expect that outcome. Last week, there was welcome news of a recovery in annual economic growth in July-September to 6.3 per cent, from 5.7 per cent the previous quarter. “The recovery is a source of comfort to the RBI as it lowers pressure on them to take a growth-supportive stance,” said Radhika Rao, an economist at DBS in Singapore. But the latest pace is still well below the 8 per cent level India needs to create millions of jobs each year for youths. Calls for a Cut That has sparked renewed calls from some government officials for the RBI, which has cut the repo rate by 200 bps since January 2015, to trim again. While analysts rule out a cut now, some say the central bank could soften its tone somewhat and sound more accommodative. “We don’t expect the tone to be outright hawkish as the RBI might need to trim down its growth projections for FY18, which at current levels is optimistic,” said Rao, who expects a hold on Wednesday and in February. “But they would still sound cautious on inflation and positive on growth.” The RBI’s course will likely be determined by inflation, which in October it projected would accelerate to 4.2 to 4.6 per cent in the six months to March, driven by multiple factors including planned pay hikes for government employees. The central bank is also likely to be concerned that the government may have a wider fiscal deficit in the fiscal year ending in March than the 3.2 per cent target, raising the prospect New Delhi may have to sell more bonds. Those fears, plus the prospect they would further reduce the scope to cut rates amid accelerating inflation, have sent benchmark 10-year bonds sharply lower since the RBI cut the repo rate on August 2, with the yield up more than 60 bps. The uncertainty about India’s fiscal management is being further exacerbated as the government is due to unveil its budget for the next fiscal year in early February, before the RBI’s next meeting. The government’s prudent fiscal management helped the country earn a much-desired rating upgrade from Moody’s Investors Service last month. Still, some analysts are worried New Delhi could crank up spending next year as it seeks to boost its re-election chances in 2019.

Preview: RBI, wary on inflation, set to keep rates on hold

Zimbabwe&rsquo;s economic growth is threatened by high government spending, an untenable foreign exchange regime and inadequate reforms, a senior International Monetary Fund (IMF) official said.

Zimbabwe was once one of Africa&rsquo;s most promising economies but suffered decades of decline as former President Robert Mugabe pursued policies that included the violent seizure of white-owned commercial farms and money-printing that led to hyperinflation.

Mugabe, 93, resigned on Tuesday after nearly four decades in power following pressure from the military, the ruling ZANU-PF party, and the general population.

New ZANU-PF leader Emmerson Mnangagwa is expected to be sworn in as Zimbabwe&rsquo;s president on Friday.

Zimbabwe has not been able to borrow from international lenders since 1999 when it started defaulting on its debt and has $1.75 billion rands in foreign arrears.

&ldquo;The economic situation in Zimbabwe remains very difficult,&rdquo; Gene Leon, IMF&rsquo;s mission chief for Zimbabwe said in a statement to Reuters late on Wednesday.

&ldquo;Immediate action is critical to reduce the deficit to a sustainable level, accelerate structural reforms, and re-engage with the international community to access much needed financial support.&rdquo;

Leon said Zimbabwe should resolve arrears to the World Bank, African Development Bank, and the European Investment Bank, among other reforms, for the IMF to consider future financing request from the country.

Zimbabwe should also be ready to implement strong macroeconomic policies and structural reforms to restore fiscal and debt sustainability, Leon said.

Zimbabwe was once one of Africa?s most promising economies but suffered decades of decline as former President Robert Mugabe pursued policies that included the violent seizure of white-owned commercial farms and money-printing that led to hyperinflation

Zimbabwe’s economic growth is threatened by high government spending, an untenable foreign exchange regime and inadequate reforms, a senior International Monetary Fund (IMF) official said. Zimbabwe was once one of Africa’s most promising economies but suffered decades of decline as former President Robert Mugabe pursued policies that included the violent seizure of white-owned commercial farms and money-printing that led to hyperinflation. Mugabe, 93, resigned on Tuesday after nearly four decades in power following pressure from the military, the ruling ZANU-PF party, and the general population. New ZANU-PF leader Emmerson Mnangagwa is expected to be sworn in as Zimbabwe’s president on Friday. Zimbabwe has not been able to borrow from international lenders since 1999 when it started defaulting on its debt and has $1.75 billion rands in foreign arrears. “The economic situation in Zimbabwe remains very difficult,” Gene Leon, IMF’s mission chief for Zimbabwe said in a statement to Reuters late on Wednesday. “Immediate action is critical to reduce the deficit to a sustainable level, accelerate structural reforms, and re-engage with the international community to access much needed financial support.” Leon said Zimbabwe should resolve arrears to the World Bank, African Development Bank, and the European Investment Bank, among other reforms, for the IMF to consider future financing request from the country. Zimbabwe should also be ready to implement strong macroeconomic policies and structural reforms to restore fiscal and debt sustainability, Leon said.

Zimbabwe's economic situation 'very difficult': IMF mission chief

Activity&nbsp;in&nbsp;India&#39;s&nbsp;services&nbsp;companies limped out of contraction in September as&nbsp;demand&nbsp;recovered and pushed firms to increase hiring at the fastest pace in over six years, a business survey showed on Thursday.

The lingering impact of the government&#39;s cash ban late last year pushed&nbsp;growth&nbsp;in Asia&#39;s third-largest economy to slow unexpectedly to a three-year low of 5.7 per cent in the April-June quarter from a year earlier.

Disruptions to businesses from confusion on product pricing after the implementation of a goods and&nbsp;services&nbsp;tax (GST) on July 1, which aimed to unify multiple taxes, have also cast a shadow on economic&nbsp;growth.

But last month, a surge in&nbsp;demand&nbsp;helped a recovery in&nbsp;activity&nbsp;among&nbsp;services&nbsp;firms after contracting for two months prior to that.

The Nikkei/IHS Markit&nbsp;Services&nbsp;Purchasing Managers&#39; Index rose to 50.7 in September from 47.5 in August, moving back above the 50-mark that separates&nbsp;growth&nbsp;from contraction.

&quot;The&nbsp;Indian private sector regained some lost ground since the implementation of July&#39;s goods and&nbsp;services&nbsp;tax (GST) as service providers followed the manufacturing industry back to&nbsp;growth,&quot; said Aashna Dodhia, an economist at IHS Markit.

A sub-index on new business, which measures both domestic and foreign&nbsp;demand, jumped to 51.1 from 47.3 in August.

That pushed firms to increase hiring at the fastest pace since June 2011 in&nbsp;September after cutting headcount in the previous two months.

A composite&nbsp;PMI, which takes into account both manufacturing and&nbsp;services&nbsp;activity, returned above break-even last month to 51.1 from 49.0 in August, aided by an expansion in manufacturing&nbsp;activity&nbsp;in&nbsp;September.

Both manufacturing and&nbsp;services&nbsp;firms continued to absorb some input cost pressures in September to attract&nbsp;demand, which is likely to keep inflation below the Reserve Bank of&nbsp;India&#39;s 4 percent medium-term target.

But the RBI kept its policy rate steady at a nearly seven-year low of 6.00 per cent on Wednesday, reflecting its concern consumer inflation could accelerate further after hitting a five-month high of 3.36 per cent in August.

The lingering impact of the government's cash ban late last year pushed?growth?in Asia's third-largest economy to slow unexpectedly to a three-year low of 5.7 percent in the April-June quarter from a year earlier

Activity in India's services companies limped out of contraction in September as demand recovered and pushed firms to increase hiring at the fastest pace in over six years, a business survey showed on Thursday. The lingering impact of the government's cash ban late last year pushed growth in Asia's third-largest economy to slow unexpectedly to a three-year low of 5.7 per cent in the April-June quarter from a year earlier. Disruptions to businesses from confusion on product pricing after the implementation of a goods and services tax (GST) on July 1, which aimed to unify multiple taxes, have also cast a shadow on economic growth. But last month, a surge in demand helped a recovery in activity among services firms after contracting for two months prior to that. The Nikkei/IHS Markit Services Purchasing Managers' Index rose to 50.7 in September from 47.5 in August, moving back above the 50-mark that separates growth from contraction. "The Indian private sector regained some lost ground since the implementation of July's goods and services tax (GST) as service providers followed the manufacturing industry back to growth," said Aashna Dodhia, an economist at IHS Markit. A sub-index on new business, which measures both domestic and foreign demand, jumped to 51.1 from 47.3 in August. That pushed firms to increase hiring at the fastest pace since June 2011 in September after cutting headcount in the previous two months. A composite PMI, which takes into account both manufacturing and services activity, returned above break-even last month to 51.1 from 49.0 in August, aided by an expansion in manufacturing activity in September. Both manufacturing and services firms continued to absorb some input cost pressures in September to attract demand, which is likely to keep inflation below the Reserve Bank of India's 4 percent medium-term target. But the RBI kept its policy rate steady at a nearly seven-year low of 6.00 per cent on Wednesday, reflecting its concern consumer inflation could accelerate further after hitting a five-month high of 3.36 per cent in August.

India services activity returned to growth in September: Study

A few years back The World Bank coined the phrase &lsquo;Bangladesh Paradox&rsquo; with regards to Bangladesh&rsquo;s steady&nbsp;economic growth despite the absence of good governance. And a lack of credible electoral democracy has been added to it since 2013. 
&nbsp; 
Political economists were baffled by the average 6-7 per cent&nbsp;annual growth of Bangladesh&#39;s economy in the past few years. Even in last two decades, the growth rate average of Bangladesh was around 6 and never went below 5 which is quite good considering the faltering of south-east Asia in the turn of the century and the economic slump of 2008-09 in the west. The growth rate is one of the highest few in the world.

The saturated economies of the developed countries have very low growth. Also, the growth rate in the middle-income countries has slowed down for various reasons. China has maintained a spectacular double-digit growth rate for the last couple of decades and became the driver of the world&rsquo;s economic growth. But, it has come down to 6-7 per cent&nbsp;now, which is similar to India. Also, the economic situation in Latin America is poor. In Africa, the rates are low barring few countries with natural resources where foreigners, especially the Chinese have recently invested. &nbsp;Scholars of political economy invoked theories about nature of political settlements in Bangladesh and open deal and close deal legacy to explain the economic growth.

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<h5>Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh</h5>
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<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh" target="_blank">&nbsp;</a></div>
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Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh. &nbsp;In addition to the impressive economic growth rate, inflation has been under control and the country maintained a healthy forex reserve, thanks to the earnings of foreign exchange through exports and remittance inflow for the sizable worldwide Bangladeshi diaspora. 
&nbsp; 
However, in the&nbsp;key area of domestic private investment, Bangladesh is lagging considerably which is also indicative of the quality of governance. The domestic capital formation seems good due to the expanding middle-class and the banks now have surplus liquidity. But, the number of takers are few despite the fact that borrowing rates have come down considerably. Native investors appear reluctant to borrow and invest. Hence, the growth potential is not being fulfilled.

Ideally, Bangladesh, with massive cheap labour, &nbsp;should have been in a double-digit growth situation as China of two decades back. The difference is, in China&rsquo;s case, the native investors were in action after the initial boost by Special Economic Zones. However, despite the reasonable success of similar Exclusive Economic Zone, the next stage involving native investors isn&#39;t happening in Bangladesh. Hence, the further growth potential is being wasted, and the high numbers of 15-20 million addition to the labour force every year, due to high population growth, can&rsquo;t be absorbed properly in the employment market as it should have been. 
&nbsp; 
The prime reasons for the lack of domestic investment are largely related to the bad state of governance in many areas and corruption. About 2000 new factories in Bangladesh are awaiting proper power connection to start or go for full capacity production. Unpredictability about the supply of required gas and electricity is deterring many other potential native investors to build industries. &nbsp;Leverage offered by cheap labour is being negated by structural deficiency. 
&nbsp; 
The Awami League government demonstrated some success in the power sector during&nbsp;its first term. But the momentum seems lost in the second. The other side of bad governance is bureaucratic red tape. Despite the matter being highlighted by the business community, ordinary citizens, media and the civil society nothing much has been done. Public servants continue to cause public sufferings. Coupled by the power crisis, the practices&nbsp;of bribing officials and rent seeking by politically affiliated lobbies (either as pure nuisance or getting a permission or sanction done) have increased the investment cost of domestic investors so much that they are unsure of the recovery of their money. The investors are not even sure&nbsp;whether&nbsp;they will be able to pay the loans back to the lending bank. Many of the foreign investors are less affected by the situation as they get some priorities in the EPZs with regards to power connections and other infrastructural facilities.

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<h5>The condition in Bangladesh now isn&rsquo;t ideal for freedom of expression or even universal features of civil liberty due to complex causal relations in its recent socio-political history.</h5>
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Another related issue is a broader one; which is of accountability. The condition in Bangladesh now isn&rsquo;t ideal for freedom of expression or even universal features of civil liberty. Due to complex causal relations in its recent socio-political history, Bangladesh has ended up in such state. The main political opposition in Bangladesh is also quite controversial and now being suppressed by the government&nbsp;and the ruling party machinery. The last general election was a one-sided story as the main opposition boycotted it. No one knows what will happen to the next election in 2019. The political office bearers and bureaucracy don&rsquo;t look to be sufficiently answerable to the people or the civil society.

The leaders from all camps of Bangladesh badly need to reach some workable understanding and find a way out of this quagmire created by untenable governance and lack of accountability. Only then the full economic potential of the country will come to fruition.

(WION)

Coupled by the power crisis, the practices?of bribing have increased the investment cost of domestic investors. They are unsure of the recovery of their money.

A few years back The World Bank coined the phrase ‘Bangladesh Paradox’ with regards to Bangladesh’s steady economic growth despite the absence of good governance. And a lack of credible electoral democracy has been added to it since 2013. Political economists were baffled by the average 6-7 per cent annual growth of Bangladesh's economy in the past few years. Even in last two decades, the growth rate average of Bangladesh was around 6 and never went below 5 which is quite good considering the faltering of south-east Asia in the turn of the century and the economic slump of 2008-09 in the west. The growth rate is one of the highest few in the world. The saturated economies of the developed countries have very low growth. Also, the growth rate in the middle-income countries has slowed down for various reasons. China has maintained a spectacular double-digit growth rate for the last couple of decades and became the driver of the world’s economic growth. But, it has come down to 6-7 per cent now, which is similar to India. Also, the economic situation in Latin America is poor. In Africa, the rates are low barring few countries with natural resources where foreigners, especially the Chinese have recently invested. Scholars of political economy invoked theories about nature of political settlements in Bangladesh and open deal and close deal legacy to explain the economic growth. Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh × Export-oriented industries like readymade garments, leather products, processed food, ship building etc alongside the public spending in power, infrastructure and services have been the drivers of the growth in Bangladesh. In addition to the impressive economic growth rate, inflation has been under control and the country maintained a healthy forex reserve, thanks to the earnings of foreign exchange through exports and remittance inflow for the sizable worldwide Bangladeshi diaspora. However, in the key area of domestic private investment, Bangladesh is lagging considerably which is also indicative of the quality of governance. The domestic capital formation seems good due to the expanding middle-class and the banks now have surplus liquidity. But, the number of takers are few despite the fact that borrowing rates have come down considerably. Native investors appear reluctant to borrow and invest. Hence, the growth potential is not being fulfilled. Ideally, Bangladesh, with massive cheap labour, should have been in a double-digit growth situation as China of two decades back. The difference is, in China’s case, the native investors were in action after the initial boost by Special Economic Zones. However, despite the reasonable success of similar Exclusive Economic Zone, the next stage involving native investors isn't happening in Bangladesh. Hence, the further growth potential is being wasted, and the high numbers of 15-20 million addition to the labour force every year, due to high population growth, can’t be absorbed properly in the employment market as it should have been. The prime reasons for the lack of domestic investment are largely related to the bad state of governance in many areas and corruption. About 2000 new factories in Bangladesh are awaiting proper power connection to start or go for full capacity production. Unpredictability about the supply of required gas and electricity is deterring many other potential native investors to build industries. Leverage offered by cheap labour is being negated by structural deficiency. The Awami League government demonstrated some success in the power sector during its first term. But the momentum seems lost in the second. The other side of bad governance is bureaucratic red tape. Despite the matter being highlighted by the business community, ordinary citizens, media and the civil society nothing much has been done. Public servants continue to cause public sufferings. Coupled by the power crisis, the practices of bribing officials and rent seeking by politically affiliated lobbies (either as pure nuisance or getting a permission or sanction done) have increased the investment cost of domestic investors so much that they are unsure of the recovery of their money. The investors are not even sure whether they will be able to pay the loans back to the lending bank. Many of the foreign investors are less affected by the situation as they get some priorities in the EPZs with regards to power connections and other infrastructural facilities. The condition in Bangladesh now isn’t ideal for freedom of expression or even universal features of civil liberty due to complex causal relations in its recent socio-political history. × Another related issue is a broader one; which is of accountability. The condition in Bangladesh now isn’t ideal for freedom of expression or even universal features of civil liberty. Due to complex causal relations in its recent socio-political history, Bangladesh has ended up in such state. The main political opposition in Bangladesh is also quite controversial and now being suppressed by the government and the ruling party machinery. The last general election was a one-sided story as the main opposition boycotted it. No one knows what will happen to the next election in 2019. The political office bearers and bureaucracy don’t look to be sufficiently answerable to the people or the civil society. The leaders from all camps of Bangladesh badly need to reach some workable understanding and find a way out of this quagmire created by untenable governance and lack of accountability. Only then the full economic potential of the country will come to fruition. (WION)

Absence of good governance is discouraging investment in Bangladesh

Emerging markets face newer challenges in the form of inward looking policies of protectionism and increased geopolitical tension, Finance Minister Arun Jaitley said today as he pegged India&#39;s GDP growth at 7.7 per cent in 2018.

Speaking at the second annual meeting of the New Development Bank (NDB) here, Jaitley said global growth is moving upwards and is expected to improve further in 2017-18.

&quot;Indian economy is expected to grow at 7.2 per cent in 2017 and at the rate of 7.7 per cent in 2018,&quot; he said.

Jaitley said emerging market economies (EMEs) face newer challenges in the form of inward looking policies of protectionism of some economies, global financial condition, policies of the United States and increased geopolitical tension.

He said India has sought USD 2 billion loans for various projects from the NDB, which is set up by the emerging nations India, China, Brazil, Russia and South Africa.

&quot;India has huge unmet infrastructure funding needs..&nbsp;&nbsp; &nbsp;.USD 646 billion is required in next 5 years (for financing infrastructure),&quot; Jaitley said.

He said growth in emerging and developing countries is picking up and news from economies of BRICS countries is &quot;encouraging&quot;.

&quot;I hope that NDB will emerge as a development bank and help in funding of emerging economies,&quot; Jaitley added.

(PTI)

Jaitley was speaking at the second annual meeting of the New Development Bank (NDB)

Emerging markets face newer challenges in the form of inward looking policies of protectionism and increased geopolitical tension, Finance Minister Arun Jaitley said today as he pegged India's GDP growth at 7.7 per cent in 2018. Speaking at the second annual meeting of the New Development Bank (NDB) here, Jaitley said global growth is moving upwards and is expected to improve further in 2017-18. "Indian economy is expected to grow at 7.2 per cent in 2017 and at the rate of 7.7 per cent in 2018," he said. Jaitley said emerging market economies (EMEs) face newer challenges in the form of inward looking policies of protectionism of some economies, global financial condition, policies of the United States and increased geopolitical tension. He said India has sought USD 2 billion loans for various projects from the NDB, which is set up by the emerging nations India, China, Brazil, Russia and South Africa. "India has huge unmet infrastructure funding needs.. .USD 646 billion is required in next 5 years (for financing infrastructure)," Jaitley said. He said growth in emerging and developing countries is picking up and news from economies of BRICS countries is "encouraging". "I hope that NDB will emerge as a development bank and help in funding of emerging economies," Jaitley added. (PTI)

India's economy to grow at 7.2% in 2017: Arun Jaitley

India can ill-afford to take much pride in having the world&#39;s fastest growing large economy when it releases September quarter data on Wednesday, with businesses, farmers and families all suffering after the government&#39;s sudden demonetization drive.

Having taken credit for putting life back in a moribund economy when he took power 2-1/2 years ago, Prime Minister Narendra Modi&#39;s crackdown on tax dodgers and counterfeiters by removing 500 rupee and 1,000 rupee banknotes from circulation has taken the economy down a very bumpy road.

How bumpy depends who&#39;s talking, but almost everyone agrees the drag on growth is likely to last through next year.

&quot;The move will weigh on Gross Domestic Product (GDP) growth for a few quarters, dampening government revenues,&quot; warned credit ratings firm Moody&#39;s Investors Service. &quot;The decline in economic activity will lower corporate sales volumes and cash flows.&quot;

The quarterly gross domestic product data released on Wednesday won&#39;t show the ill-effects. July-September will be the last quarter before the impact is felt from Modi&#39;s bold and risky move this month to force people to deposit their hidden cash in banks, making it easy for the taxman to see.

The median estimate from a Reuters poll showed economists expect economic growth accelerated to 7.5 per cent in the September quarter from 7.1 per cent in the June quarter.

That&#39;s not as fast as the 7.9 per cent posted in the March quarter, but it had recovered momentum, and might have gone higher until Modi launched his attack on the so-called &quot;black economy&quot;.

While Modi has been praised for his intentions, people are wringing their hands over the cost of taking 86 per cent of the country&#39;s banknotes out of circulation virtually overnight.

The most optimistic forecasts suggest that India will finish this fiscal year in March with a respectable, but slightly lower growth rate of 7.3 per cent.

But the most pessimistic forecast, from Mumbai-based brokerage Ambit Capital, for a precipitous drop to 3.5 per cent growth shows just how worried people are. 
&nbsp;

Knock-on effects

With a small stock of smaller notes available and new bills of 500 and 2,000 rupee in short supply, Indians had to stand in snaking queues outside banks and cash machines to change their old notes.

The better off may have more money to change, but for the mass of Indians living on the margins the disruption and loss of earnings has caused real hardship.

Modi expects the cash situation to become normal by end-December, but critics say he is being over-optimistic.

Meantime, consumers are spending less, which is hurting small producers who, in turn, are being forced to scale back their activities.

As a consequence, supply chains at small, medium and even larger companies are breaking down. Trucks are stranded with no money for fuel, workers won&#39;t load goods for free, and distributors can&#39;t pay up. Wholesale markets in many cities are shut.

The cash crunch has jeopardised production of key commodities and hurt rural communities - just recovering after two years of drought - as farmers lack cash to buy seeds and fertiliser. As a result, the area under cultivation for India&#39;s winter crop has declined.

CMIE, an economic think tank, reckons the big banknote swap would cost at least $19 billion by the end of 2016 in foregone wages, lost business, and higher administrative expenses alone.

The liquidity shortage will retard efforts to revive private investment that has been plagued by weak external demand and a slow recovery in domestic demand.

And, despite the high economic growth rates seen over the past year-and-a-half, factories&#39; capacity utilization ratio remains stuck near their lowest level since 2009.

&quot;Given that the growth recovery has still not taken full hold, the impact of this demonetisation ... could delay the private corporate capex recovery,&quot; analysts at Morgan Stanley wrote in a note, adding that they don&#39;t expect that recovery to happen before 2018.

At least the potential for lower inflation holds out some hope that the Reserve Bank of India will extend its easing cycle with a quick interest rate cut.

&quot;The central bank might prefer to bring forward the rate cut to December to support growth and tap the favourable inflation outlook,&quot; said Radhika Rao, an economist with DBS Bank.

(Reuters)

The country will release September quarter data on Wednesday

India can ill-afford to take much pride in having the world's fastest growing large economy when it releases September quarter data on Wednesday, with businesses, farmers and families all suffering after the government's sudden demonetization drive. Having taken credit for putting life back in a moribund economy when he took power 2-1/2 years ago, Prime Minister Narendra Modi's crackdown on tax dodgers and counterfeiters by removing 500 rupee and 1,000 rupee banknotes from circulation has taken the economy down a very bumpy road. How bumpy depends who's talking, but almost everyone agrees the drag on growth is likely to last through next year. "The move will weigh on Gross Domestic Product (GDP) growth for a few quarters, dampening government revenues," warned credit ratings firm Moody's Investors Service. "The decline in economic activity will lower corporate sales volumes and cash flows." The quarterly gross domestic product data released on Wednesday won't show the ill-effects. July-September will be the last quarter before the impact is felt from Modi's bold and risky move this month to force people to deposit their hidden cash in banks, making it easy for the taxman to see. The median estimate from a Reuters poll showed economists expect economic growth accelerated to 7.5 per cent in the September quarter from 7.1 per cent in the June quarter. That's not as fast as the 7.9 per cent posted in the March quarter, but it had recovered momentum, and might have gone higher until Modi launched his attack on the so-called "black economy". While Modi has been praised for his intentions, people are wringing their hands over the cost of taking 86 per cent of the country's banknotes out of circulation virtually overnight. The most optimistic forecasts suggest that India will finish this fiscal year in March with a respectable, but slightly lower growth rate of 7.3 per cent. But the most pessimistic forecast, from Mumbai-based brokerage Ambit Capital, for a precipitous drop to 3.5 per cent growth shows just how worried people are. Knock-on effects With a small stock of smaller notes available and new bills of 500 and 2,000 rupee in short supply, Indians had to stand in snaking queues outside banks and cash machines to change their old notes. The better off may have more money to change, but for the mass of Indians living on the margins the disruption and loss of earnings has caused real hardship. Modi expects the cash situation to become normal by end-December, but critics say he is being over-optimistic. Meantime, consumers are spending less, which is hurting small producers who, in turn, are being forced to scale back their activities. As a consequence, supply chains at small, medium and even larger companies are breaking down. Trucks are stranded with no money for fuel, workers won't load goods for free, and distributors can't pay up. Wholesale markets in many cities are shut. The cash crunch has jeopardised production of key commodities and hurt rural communities - just recovering after two years of drought - as farmers lack cash to buy seeds and fertiliser. As a result, the area under cultivation for India's winter crop has declined. CMIE, an economic think tank, reckons the big banknote swap would cost at least $19 billion by the end of 2016 in foregone wages, lost business, and higher administrative expenses alone. The liquidity shortage will retard efforts to revive private investment that has been plagued by weak external demand and a slow recovery in domestic demand. And, despite the high economic growth rates seen over the past year-and-a-half, factories' capacity utilization ratio remains stuck near their lowest level since 2009. "Given that the growth recovery has still not taken full hold, the impact of this demonetisation ... could delay the private corporate capex recovery," analysts at Morgan Stanley wrote in a note, adding that they don't expect that recovery to happen before 2018. At least the potential for lower inflation holds out some hope that the Reserve Bank of India will extend its easing cycle with a quick interest rate cut. "The central bank might prefer to bring forward the rate cut to December to support growth and tap the favourable inflation outlook," said Radhika Rao, an economist with DBS Bank. (Reuters)

Chilled by demonetisation, India to take cold comfort from strong GDP

Canada on Monday said it would accept 30,000 immigrants into the country, setting the number as a new baseline for the admission of permanent residents.

The government said the majority of those allowed into the country will be selected as economic immigrants, news agency Reuters reported. Despite recommendations of increasing the number to help spur economic growth, the target remained unchanged from 2016&#39;s plan. It is, however, above the average of 259,542 immigrants admitted from 2011 to 2015.

Finance minister Bill Morneau&#39;s economic advisory council recently made a recommendation to increase Canada&#39;s annual immigration target to 450,000 over the next five years.

Immigration minister John McCallum agreed that more immigrants would be good policy but said the number was not conceivable for 2017. He told reporters that making the 300,000 target permanent laid the foundation for future immigration growth, reported Reuters.

&quot;I do believe it is true that more immigrants for Canada would be a good policy for demographic reasons. That number is a conceivable number for some date in the future, but certainly not for 2017.&quot;

Canada&#39;s ageing population, similar to many developing countries, poses a challenge for economic growth.

The government said that the number of immigrants accepted under the economic category will rise from 160,000 this year to 172,500 next year. The number of refugee will decrease to 40,000 from 55,800.

(With inputs from Reuters)

Despite recommendations to increase the number to help spur economic growth, the target remained unchanged from 2016's plan

Canada on Monday said it would accept 30,000 immigrants into the country, setting the number as a new baseline for the admission of permanent residents. The government said the majority of those allowed into the country will be selected as economic immigrants, news agency Reuters reported. Despite recommendations of increasing the number to help spur economic growth, the target remained unchanged from 2016's plan. It is, however, above the average of 259,542 immigrants admitted from 2011 to 2015. Finance minister Bill Morneau's economic advisory council recently made a recommendation to increase Canada's annual immigration target to 450,000 over the next five years. Immigration minister John McCallum agreed that more immigrants would be good policy but said the number was not conceivable for 2017. He told reporters that making the 300,000 target permanent laid the foundation for future immigration growth, reported Reuters. "I do believe it is true that more immigrants for Canada would be a good policy for demographic reasons. That number is a conceivable number for some date in the future, but certainly not for 2017." Canada's ageing population, similar to many developing countries, poses a challenge for economic growth. The government said that the number of immigrants accepted under the economic category will rise from 160,000 this year to 172,500 next year. The number of refugee will decrease to 40,000 from 55,800. (With inputs from Reuters)

Canada: Immigration target for 2017 set at 300,000 people

Former Wall Street banker Pedro Pablo Kuczynski was inaugurated as Peru&#39;s new president yesterday, vowing to kick-start the economy and unite a country torn by a photo-finish election. 
 
The 77-year-old centre-right economist extended an olive branch to defeated rival Keiko Fujimori&#39;s party, which controls Congress, saying he would need their help to pass reforms. 
 
He promised to work for all Peruvians, outlining his vision for a &quot;social revolution&quot; in his inaugural address before Congress. 
 
&quot;I will seek equity, equality and fraternity among all Peruvians,&quot; said the man known simply as PPK. 
 
Peru needs &quot;not just economic, but human growth,&quot; he said, vowing to extend basic services such as schools, hospitals and drinking water to the one-third of Peruvians who lack them. 
 
The normally staid Kuczynski, who is known as a technocrat with a stellar resume, choked up as he took the oath of office, then donned his new red and white presidential sash over his pinstriped suit. 
 
Peru is one of Latin America&#39;s fastest growing economies, but growth slowed under outgoing leftist president Ollanta Humala, from 6.5 per cent in 2011 to 3.3 percent last year. 
 
Kuczynski vowed to stimulate the economy, revive the key mining sector, fight the poverty that affects 22 per cent of Peruvians, crack down on corruption, and strengthen the police and prisons to reduce crime. 
 
The Fujimori problem 
 
Foreign investors and markets have welcomed the new president as a reliable pair of hands. 
 
&quot;Kuczynski&#39;s government is likely to remain highly supportive of foreign investment, with minimalist state intervention,&quot; said Diego Moya-Ocampos of consultancy IHS Country Risk. 
 
He predicted Kuczynski would seek to expand Peru&#39;s domestic refining and smelting capacity, and pointed out that his first scheduled trip is to China - which he called a key player in the president&#39;s strategy to make Peru a &quot;metallurgical powerhouse.&quot; 
 
But a large bump is lurking in the road.&nbsp;Kuczynski&#39;s party, the centre-right Peruvians for Change, has just 18 seats in the 130-member Congress. 
 
The new legislature is dominated by allies of Fujimori, the daughter of disgraced and jailed ex-president Alberto Fujimori.&nbsp;Her right-wing party, Popular Force, has 73 lawmakers in Congress. 
 
None of them applauded at any point during the inauguration, Kuczynski&#39;s camp complained.&nbsp;It could prove tough for the new president to advance his reform agenda. 
 
There may be lingering bad blood from the election. Fujimori took five days to concede as results trickled in from the remote reaches of the Peruvian Amazon. 
 
In the end she had little choice but to recognise defeat, by less than a quarter of a percentage point. 
 
The race opened old wounds dating back to the 1990s, when Fujimori&#39;s father was president. 
 
Now serving a 25-year prison sentence for massacres by an army death squad, Alberto Fujimori (1990-2000) is fondly remembered by some Peruvians for his populist streak, his ruthless crackdown on the leftist rebel group Shining Path and his management of a strong economy. 
 
But his authoritarian legacy was also heavy baggage for his daughter. 
 
Her 78-year-old father&#39;s supporters are now pressuring Kuczynski to pardon him. 
 
The president-elect has said he is willing to sign a law granting house arrest to elderly and ailing prisoners such as Fujimori, but will not issue a pardon. 
 
&#39;El Gringo&#39; 
 
Kuczynski, the son of a Jewish doctor who fled Nazi Germany, has had a long career in business and finance. 
 
Educated at Oxford University and Princeton, he has an impressive resume including stints as economy minister and a World Bank economist. 
 
He stressed his age and experience during the campaign. 
 
&quot;I&#39;m old, but my noggin is still working,&quot; he said.&nbsp;But he sometimes struggles to connect with ordinary Peruvians. 
 
He speaks Spanish with an American accent, betraying his long years in the United States. Some Peruvians call him &quot;El Gringo.&quot; 
 
Seeking to lighten the burden of his outsider status, he donned a traditional multicolored woolly hat at campaign rallies, played the flute and trotted out his mascot, a man-sized guinea pig - a symbol of Peru. 
 
(AFP)

The Pedro Kuczynski choked as he took the oath of office. He vowed to kick-start the economy and bring about a social revolution

Former Wall Street banker Pedro Pablo Kuczynski was inaugurated as Peru's new president yesterday, vowing to kick-start the economy and unite a country torn by a photo-finish election. The 77-year-old centre-right economist extended an olive branch to defeated rival Keiko Fujimori's party, which controls Congress, saying he would need their help to pass reforms. He promised to work for all Peruvians, outlining his vision for a "social revolution" in his inaugural address before Congress. "I will seek equity, equality and fraternity among all Peruvians," said the man known simply as PPK. Peru needs "not just economic, but human growth," he said, vowing to extend basic services such as schools, hospitals and drinking water to the one-third of Peruvians who lack them. The normally staid Kuczynski, who is known as a technocrat with a stellar resume, choked up as he took the oath of office, then donned his new red and white presidential sash over his pinstriped suit. Peru is one of Latin America's fastest growing economies, but growth slowed under outgoing leftist president Ollanta Humala, from 6.5 per cent in 2011 to 3.3 percent last year. Kuczynski vowed to stimulate the economy, revive the key mining sector, fight the poverty that affects 22 per cent of Peruvians, crack down on corruption, and strengthen the police and prisons to reduce crime. The Fujimori problem Foreign investors and markets have welcomed the new president as a reliable pair of hands. "Kuczynski's government is likely to remain highly supportive of foreign investment, with minimalist state intervention," said Diego Moya-Ocampos of consultancy IHS Country Risk. He predicted Kuczynski would seek to expand Peru's domestic refining and smelting capacity, and pointed out that his first scheduled trip is to China - which he called a key player in the president's strategy to make Peru a "metallurgical powerhouse." But a large bump is lurking in the road. Kuczynski's party, the centre-right Peruvians for Change, has just 18 seats in the 130-member Congress. The new legislature is dominated by allies of Fujimori, the daughter of disgraced and jailed ex-president Alberto Fujimori. Her right-wing party, Popular Force, has 73 lawmakers in Congress. None of them applauded at any point during the inauguration, Kuczynski's camp complained. It could prove tough for the new president to advance his reform agenda. There may be lingering bad blood from the election. Fujimori took five days to concede as results trickled in from the remote reaches of the Peruvian Amazon. In the end she had little choice but to recognise defeat, by less than a quarter of a percentage point. The race opened old wounds dating back to the 1990s, when Fujimori's father was president. Now serving a 25-year prison sentence for massacres by an army death squad, Alberto Fujimori (1990-2000) is fondly remembered by some Peruvians for his populist streak, his ruthless crackdown on the leftist rebel group Shining Path and his management of a strong economy. But his authoritarian legacy was also heavy baggage for his daughter. Her 78-year-old father's supporters are now pressuring Kuczynski to pardon him. The president-elect has said he is willing to sign a law granting house arrest to elderly and ailing prisoners such as Fujimori, but will not issue a pardon. 'El Gringo' Kuczynski, the son of a Jewish doctor who fled Nazi Germany, has had a long career in business and finance. Educated at Oxford University and Princeton, he has an impressive resume including stints as economy minister and a World Bank economist. He stressed his age and experience during the campaign. "I'm old, but my noggin is still working," he said. But he sometimes struggles to connect with ordinary Peruvians. He speaks Spanish with an American accent, betraying his long years in the United States. Some Peruvians call him "El Gringo." Seeking to lighten the burden of his outsider status, he donned a traditional multicolored woolly hat at campaign rallies, played the flute and trotted out his mascot, a man-sized guinea pig - a symbol of Peru. (AFP)

Former Wall Street banker Kuczynski sworn in as Peruvian president

South Korea aims to regulate the increasingly common ownership of pets in a bid to promote an unsupervised sector that the government sees as economic growth opportunity, and to crack down on animal abuse and neglect. 
 
Measures announced on Thursday will enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours, while imposing stiffer punishment on breeders found using unsanitary or inhumane methods. 
 
Pets were once rare in South Korea, a country where the consumption of dog meat was widespread though it has declined sharply during the rapid modernization of recent decades. 
 
&quot;We know we are a bit late, but we are aiming to become a developed country in terms of the pet industry,&quot; Kang Chong-suk, director of the finance ministry&#39;s general policy coordination division, said in a telephone interview. 
 
&quot;There were absolutely no regulations and many illegal activities were being carried out.&quot; 
 
Nearly 22 per cent of South Korean households last year had at least one pet, up from 17.4 per cent five years earlier, a trend fuelled by the rise in single-person households. 
 
At the same time, there has been a jump in the number of abandoned pets. 
 
The government expects the measures will help the industry increase revenues from 1.8 trillion Won ($1.56 billion) now to 5.8 trillion Won in 2020. 
 
Under the plan, animal funeral facilities will be legalised, addressing complaints from pet owners over current law that says dead pets must be discarded, like household rubbish, in plastic garbage bags. 
 
New laws will also make it possible to start pet-related businesses like hotels, cafes and training centres. 
 
Pet cafes, where human customers can mingle with dogs and cats while having a cup of coffee, are increasingly popular in South Korea even though current law forbids the sale of food where animals can roam. 
 
The government will also introduce a veterinary nursing license and encourage insurers to develop more pet insurance policies. 
 
The measures are part of broader efforts to bolster various industries, including halal and kosher food production, the housing market and sports, as the government tries to find more sources of growth. 
 
&#39;TOO MANY PETS&#39; 
 
Fines for abandoning pets will be raised threefold from 1 million Won, while government support for animal shelters will be increased. 
 
Last year, 82,000 pets were abandoned or lost in South Korea, straining its 307 shelters, according to the government. 
 
&quot;They should have started this process a long time ago,&quot; said Kwon Beom-suk, a veterinarian in Seoul. 
 
&quot;We have too many pets in South Korea even though the pet culture has not matured yet.&quot; 
 
Fines will also be increased for unregistered or abusive animal-breeding facilities.&nbsp;About 1,000 commercial dog breeders are now operating, more than 80 per cent illegally, according to the government. 
 
Thursday&#39;s announcement comes amid public outrage over television reports showing abuse of dogs at some so-called puppy mills, including non-veterinarians performing crude caesarean sections on pregnant dogs.&nbsp;Kang said the government&#39;s planning preceded the broadcasts. 
 
($1 = 1,154.6700 Won) 
 
(Reuters)

New measures would enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours

South Korea aims to regulate the increasingly common ownership of pets in a bid to promote an unsupervised sector that the government sees as economic growth opportunity, and to crack down on animal abuse and neglect. Measures announced on Thursday will enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours, while imposing stiffer punishment on breeders found using unsanitary or inhumane methods. Pets were once rare in South Korea, a country where the consumption of dog meat was widespread though it has declined sharply during the rapid modernization of recent decades. "We know we are a bit late, but we are aiming to become a developed country in terms of the pet industry," Kang Chong-suk, director of the finance ministry's general policy coordination division, said in a telephone interview. "There were absolutely no regulations and many illegal activities were being carried out." Nearly 22 per cent of South Korean households last year had at least one pet, up from 17.4 per cent five years earlier, a trend fuelled by the rise in single-person households. At the same time, there has been a jump in the number of abandoned pets. The government expects the measures will help the industry increase revenues from 1.8 trillion Won ($1.56 billion) now to 5.8 trillion Won in 2020. Under the plan, animal funeral facilities will be legalised, addressing complaints from pet owners over current law that says dead pets must be discarded, like household rubbish, in plastic garbage bags. New laws will also make it possible to start pet-related businesses like hotels, cafes and training centres. Pet cafes, where human customers can mingle with dogs and cats while having a cup of coffee, are increasingly popular in South Korea even though current law forbids the sale of food where animals can roam. The government will also introduce a veterinary nursing license and encourage insurers to develop more pet insurance policies. The measures are part of broader efforts to bolster various industries, including halal and kosher food production, the housing market and sports, as the government tries to find more sources of growth. 'TOO MANY PETS' Fines for abandoning pets will be raised threefold from 1 million Won, while government support for animal shelters will be increased. Last year, 82,000 pets were abandoned or lost in South Korea, straining its 307 shelters, according to the government. "They should have started this process a long time ago," said Kwon Beom-suk, a veterinarian in Seoul. "We have too many pets in South Korea even though the pet culture has not matured yet." Fines will also be increased for unregistered or abusive animal-breeding facilities. About 1,000 commercial dog breeders are now operating, more than 80 per cent illegally, according to the government. Thursday's announcement comes amid public outrage over television reports showing abuse of dogs at some so-called puppy mills, including non-veterinarians performing crude caesarean sections on pregnant dogs. Kang said the government's planning preceded the broadcasts. ($1 = 1,154.6700 Won) (Reuters)

South Korea aims to overhaul its pet sector

Britain&#39;s economic growth slowed in the first quarter from the previous three months, official data confirmed Thursday, as business investment faltered on uncertainty before the Brexit referendum. 
 
Gross domestic product (GDP) grew 0.4 per cent, the Office for National Statistics (ONS) said in a final estimate for the period between January and March, ahead of the June 23 European Union (EU) membership vote. 
 
That was unchanged from the previous figure, but marked a slowdown from the fourth quarter of 2015, which was revised up to 0.7 per cent expansion from 0.6 per cent. 
 
&quot;Business investment was highly likely limited by increased business caution ahead of the EU membership referendum,&quot; said IHS Global Insight economist Howard Archer. 
 
&quot;It was also disappointing to see exports of goods and services dip.&quot; 
 
In a shock referendum last Thursday, Britons voted to quit the EU in a so-called Brexit - despite warnings from the government and the International Monetary Fund of a potential recession. 
 
The outcome sparked the resignation of British Prime Minister David Cameron who backed the unsuccessful Remain campaign and will step down in the autumn. 
 
&quot;We can be confident that the economic recovery has lost further momentum in the second quarter as Brexit risk began to loom large,&quot; added economist Samuel Tombs at Pantheon Macro. 
 
&quot;Even if the referendum had led to continuation of the status quo, the UK&#39;s economic recovery would be slowing in response to tighter fiscal policy, moderating employment growth and slowly rising inflation. 
 
&quot;The referendum has turned a bad outlook into a terrible one, and we now expect collapsing business investment, a hiring freeze and much higher inflation to push the economy into recession.&quot; 
 
The technical definition of a recession is two or more successive quarters of economic contraction. 
 
(AFP)

With uncertainty looming before Brexit referendum, Britain's several economic sectors are adversely affected

Britain's economic growth slowed in the first quarter from the previous three months, official data confirmed Thursday, as business investment faltered on uncertainty before the Brexit referendum. Gross domestic product (GDP) grew 0.4 per cent, the Office for National Statistics (ONS) said in a final estimate for the period between January and March, ahead of the June 23 European Union (EU) membership vote. That was unchanged from the previous figure, but marked a slowdown from the fourth quarter of 2015, which was revised up to 0.7 per cent expansion from 0.6 per cent. "Business investment was highly likely limited by increased business caution ahead of the EU membership referendum," said IHS Global Insight economist Howard Archer. "It was also disappointing to see exports of goods and services dip." In a shock referendum last Thursday, Britons voted to quit the EU in a so-called Brexit - despite warnings from the government and the International Monetary Fund of a potential recession. The outcome sparked the resignation of British Prime Minister David Cameron who backed the unsuccessful Remain campaign and will step down in the autumn. "We can be confident that the economic recovery has lost further momentum in the second quarter as Brexit risk began to loom large," added economist Samuel Tombs at Pantheon Macro. "Even if the referendum had led to continuation of the status quo, the UK's economic recovery would be slowing in response to tighter fiscal policy, moderating employment growth and slowly rising inflation. "The referendum has turned a bad outlook into a terrible one, and we now expect collapsing business investment, a hiring freeze and much higher inflation to push the economy into recession." The technical definition of a recession is two or more successive quarters of economic contraction. (AFP)

Britain's economic growth slows, says official data

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