According to a new survey, poverty in India has significantly declined, with estimates suggesting it may be below 5%. The survey also reveals a notable rise in consumption across the country, along with a shift in spending patterns. Watch to know more!

Niti Aayog CEO claims poverty in India is below 5%

The world is sitting on debt time bomb, which has crossed the 300-trillion mark. However, some countries are at a greater risk than others. This report tells you more.

Global debt burden now stands at record $313 trillion

The world is sitting on debt Time Bomb which has crossed the $300 trillion Mark. Some countries are at a greater risk than others. The developing countries are worst-hit by rising debt burden. Watch to know more!

Nigeria's inflation rate accelerated further in January and reached almost 30% in annual terms, driven by soaring food costs and the fall of the country's naira currency to record lows. Watch in for more details!

Nigeria: Public anger grows over economic distress

In China, the property sector continues to struggle. The decline in China's new home prices slowed in January. Some of the biggest cities saw some stability in prices. But the nationwide downward trend persisted, despite Beijing's efforts to revive demand. Watch to more!

China's struggling property market | How the market fared in January?

The latest data on salaries reveals a balanced outlook for India in 2024. While hikes are expected to moderate slightly, there's good news for professionals in specific sectors.

India tops salary increases among major economies

Amid China's economic slowdown and record-low foreign investment, India's stock market is riding high, with billions of dollars pouring in from investors. With over $20 billion in foreign inflows last year alone, India's equity market is witnessing significant growth. While China's Shanghai composite exchange declined by 13% over the past year, India's benchmark BSE Sensex index surged approximately 17%.

China’s slump triggers India’s growth

Guyana's efforts to capitalise on its energy bounty, a significant project aimed at reducing electricity costs through a gas-to-power initiative will be delayed until 2025.

The project, valued at $1.9 billion, was initially slated to commence this year but has encountered delays due to various factors including work delays, late equipment deliveries, and issues with the project's foundation.

Winston Brassington, a government consultant involved in the project, revealed that the combined-cycle power plant will not achieve full operation until the fourth quarter of 2025.

The project, which was a pledge made to Guyana's residents to reduce energy costs by 50 per cent this year, has faced setbacks despite efforts to secure financing. Guyana is requesting a $646 million loan from the US Export-Import Bank to fund the onshore facilities.

Meanwhile, ExxonMobil, currently constructing a $1 billion pipeline, will be reimbursed by proceeds from the country's offshore production. The gas pipeline is expected to be completed by the end of this year, according to Alistair Routledge, Exxon Guyana country chief.

However, despite these delays, the government remains optimistic about the project's progress. It expects the power plant to start delivering 200 MW by June 30 next year, with project completion and delivery of 300 MW on a combined cycle by the end of 2025.

While challenges persist, Guyana continues its efforts to harness its energy resources for the benefit of its population and economy.

The long-standing Essequibo dispute between Guyana and Venezuela, which has lingered for decades, saw a significant breakthrough in December 2023 as both nations reached an agreement to resolve the issue peacefully.

The resolution marks a crucial milestone in the region, particularly considering the rich oil and gas deposits in the disputed area. This agreement underscores the commitment of both countries to avoid resorting to force and instead seek diplomatic solutions to longstanding territorial disputes.

The discovery of crude oil in the Essequibo region by ExxonMobil in 2015 has reshaped Guyana's economic landscape. Prior to this discovery, Guyana primarily relied on agriculture and mining for its economic sustenance.

However, the potential exploitation of substantial oil and gas reserves has swiftly transformed the country's economic prospects. Guyana has since emerged as one of the fastest-growing economies globally, despite challenges posed by the COVID-19 pandemic and global economic slowdowns.

The exponential growth rates, with GDP surging by over 62.3 per cent in 2022, highlight the transformative impact of the oil discoveries on Guyana's economy.

Political tensions surrounding the Essequibo dispute have persisted, with some attributing the escalation to Venezuelan President Nicolas Maduro's efforts to consolidate domestic support.

Maduro's actions, including holding a controversial referendum on annexing Essequibo, reflect the intricate geopolitical complexities intertwined with economic interests in the region.

Despite Guyana's potential to become a significant player in the global energy market and substantially increase its GDP per capita, uncertainties loom over its economic future.

The fear of a potential Venezuelan invasion, coupled with broader geopolitical dynamics, raises concerns about Guyana's ability to fully realise its economic potential from its oil wealth.

(With inputs from Reuters)

Guyana's efforts to capitalise on its energy bounty, a significant project aimed at reducing electricity costs through a gas-to-power initiative will be delayed until 2025.

Guyana's efforts to capitalise on its energy bounty, a significant project aimed at reducing electricity costs through a gas-to-power initiative will be delayed until 2025. The project, valued at $1.9 billion, was initially slated to commence this year but has encountered delays due to various factors including work delays, late equipment deliveries, and issues with the project's foundation. Winston Brassington, a government consultant involved in the project, revealed that the combined-cycle power plant will not achieve full operation until the fourth quarter of 2025. The project, which was a pledge made to Guyana's residents to reduce energy costs by 50 per cent this year, has faced setbacks despite efforts to secure financing. Guyana is requesting a $646 million loan from the US Export-Import Bank to fund the onshore facilities. Meanwhile, ExxonMobil, currently constructing a $1 billion pipeline, will be reimbursed by proceeds from the country's offshore production. The gas pipeline is expected to be completed by the end of this year, according to Alistair Routledge, Exxon Guyana country chief. However, despite these delays, the government remains optimistic about the project's progress. It expects the power plant to start delivering 200 MW by June 30 next year, with project completion and delivery of 300 MW on a combined cycle by the end of 2025. While challenges persist, Guyana continues its efforts to harness its energy resources for the benefit of its population and economy. The long-standing Essequibo dispute between Guyana and Venezuela, which has lingered for decades, saw a significant breakthrough in December 2023 as both nations reached an agreement to resolve the issue peacefully. The resolution marks a crucial milestone in the region, particularly considering the rich oil and gas deposits in the disputed area. This agreement underscores the commitment of both countries to avoid resorting to force and instead seek diplomatic solutions to longstanding territorial disputes. The discovery of crude oil in the Essequibo region by ExxonMobil in 2015 has reshaped Guyana's economic landscape. Prior to this discovery, Guyana primarily relied on agriculture and mining for its economic sustenance. However, the potential exploitation of substantial oil and gas reserves has swiftly transformed the country's economic prospects. Guyana has since emerged as one of the fastest-growing economies globally, despite challenges posed by the COVID-19 pandemic and global economic slowdowns. The exponential growth rates, with GDP surging by over 62.3 per cent in 2022, highlight the transformative impact of the oil discoveries on Guyana's economy. Political tensions surrounding the Essequibo dispute have persisted, with some attributing the escalation to Venezuelan President Nicolas Maduro's efforts to consolidate domestic support. Maduro's actions, including holding a controversial referendum on annexing Essequibo, reflect the intricate geopolitical complexities intertwined with economic interests in the region. Despite Guyana's potential to become a significant player in the global energy market and substantially increase its GDP per capita, uncertainties loom over its economic future. The fear of a potential Venezuelan invasion, coupled with broader geopolitical dynamics, raises concerns about Guyana's ability to fully realise its economic potential from its oil wealth. (With inputs from Reuters)

Guyana delays $1.9 billion gas-to-power project until 2025 due to delays and challenges

Germany's economic landscape is in flux, with the Bundesbank issuing a stark warning of an impending recession. External demand weakens, consumers adopt a cautious stance, and domestic investment is hampered by high borrowing costs. Watch to know more!

Germany likely in recession amid weak demand: Bundesbank

Ukraine's war with Russia is entering its third year, and a new battleground is emerging: the economy. Businesses are clashing with a proposed draft law, fearing it could cripple the already fragile economy. Watch to know more!

Ukraine’s businesses raise concerns over mobilisation legislation

A stark reality emerges for china's economy as foreign direct investment plunges to its lowest level in three decades. Amid pandemic woes and escalating trade tensions, global companies are pulling back, with FDI dropping by 82% in 2023. Watch to know more!

China's foreign direct investment hits lowest level since 1993

A dynamic cohort of India’s affluent young professionals is reshaping the contours of the luxury car market. These individuals spearheaded a remarkable surge...Propelling the sector to a 37 per cent growth, culminating in 38,680 units sold in the preceding calendar year. Watch to know more!

India's young professional splurge on luxury cars

The after effects of covid-19 which still continue to impact a large section of patients who were infected by the virus and more so a study reveals Indians are the worst hit more than people who have faced the infection in China or Europe. Watch to know more!

Indians worst hit by Covid19 after-effects: Study

Israel faces one of its most severe economic crisis in recent history, now the aftermath of the the Hamas conflict has sent shock waves through the nation's economy. Preliminary figures reveal a 19.4% contraction in GDP during the last 3 months of last year far exceeding analyst predictions, this comes as Moody's investors service downgraded Israel's economic outlook to negative for the first time. Watch to know more!

Israel's GDP slumps amid war | Israel-Hamas war

China's central bank, the People's Bank of China (PBOC), has opted to maintain stability in its monetary policy by leaving a key policy rate unchanged on Sunday.<o:p></o:p>

The decision to keep the rate on one-year medium-term lending facility (MLF) loans at 2.50 per cent aligns with expectations, as uncertainties surrounding the Federal Reserve's easing timeline restrict Beijing's response.<o:p></o:p>

With approximately $69 billion worth of MLF loans set to expire this month, the PBOC's move resulted in a net fresh fund injection into the banking system. This decision underscores the delicate balancing act Beijing faces in supporting its economy amidst persistent deflationary pressures.<o:p></o:p>

The PBOC's decision to maintain the MLF rate comes amidst a backdrop of mounting pressure for further stimulus measures. However, any aggressive monetary movements risk reigniting depreciation pressure on the Chinese currency and capital outflows.<o:p></o:p>

Despite some market watchers anticipating additional easing measures shortly, the central bank's preference for stability remains evident.<o:p></o:p>

According to a Reuters report, Chang Wei Liang, FX &amp; credit strategist at DBS, suggests that policymakers are keen on anchoring the yuan and limiting negative rate differentials with the US dollar.<o:p></o:p>

Market sentiment has been closely monitored following the PBOC's recent actions, including a significant cut to bank reserves earlier in the month. Despite these efforts, sentiment stabilisation has proved elusive.<o:p></o:p>

Ting Lu, chief China economist at Nomura, anticipates further rate cuts in both the open market operations (OMO) and MLF rates in the first and second quarters. Lu observes that previous easing measures, such as an earlier-than-expected cut in the reserve requirement ratio (RRR), have failed to achieve the desired impact on market sentiment.<o:p></o:p>

Looking ahead, there are expectations that the benchmark loan prime rate (LPR) could see a reduction in the coming days, particularly for the five-year tenor.<o:p></o:p>

Lowering the five-year LPR is seen as a measure to stabilise confidence, promote investment and consumption, and support the stable development of the real estate market. The monthly fixing of the LPRs is scheduled for February 20th, further indicating potential adjustments on the horizon.<o:p></o:p>

In its latest monetary policy implementation report, the PBOC reaffirmed its commitment to flexible policies aimed at boosting domestic demand while maintaining price stability. The central bank's stance underscores the ongoing efforts to navigate the complexities of the economic landscape, balancing the need for stimulus with stability concerns.<o:p></o:p>

As market dynamics continue to evolve, policymakers remain vigilant in their approach to sustaining economic growth.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

<o:p>&nbsp;</o:p>

China's central bank, the People's Bank of China (PBOC), has opted to maintain stability in its monetary policy by leaving a key policy rate unchanged on Sunday.

China's central bank, the People's Bank of China (PBOC), has opted to maintain stability in its monetary policy by leaving a key policy rate unchanged on Sunday. The decision to keep the rate on one-year medium-term lending facility (MLF) loans at 2.50 per cent aligns with expectations, as uncertainties surrounding the Federal Reserve's easing timeline restrict Beijing's response. With approximately $69 billion worth of MLF loans set to expire this month, the PBOC's move resulted in a net fresh fund injection into the banking system. This decision underscores the delicate balancing act Beijing faces in supporting its economy amidst persistent deflationary pressures. The PBOC's decision to maintain the MLF rate comes amidst a backdrop of mounting pressure for further stimulus measures. However, any aggressive monetary movements risk reigniting depreciation pressure on the Chinese currency and capital outflows. Despite some market watchers anticipating additional easing measures shortly, the central bank's preference for stability remains evident. According to a Reuters report, Chang Wei Liang, FX & credit strategist at DBS, suggests that policymakers are keen on anchoring the yuan and limiting negative rate differentials with the US dollar. Market sentiment has been closely monitored following the PBOC's recent actions, including a significant cut to bank reserves earlier in the month. Despite these efforts, sentiment stabilisation has proved elusive. Ting Lu, chief China economist at Nomura, anticipates further rate cuts in both the open market operations (OMO) and MLF rates in the first and second quarters. Lu observes that previous easing measures, such as an earlier-than-expected cut in the reserve requirement ratio (RRR), have failed to achieve the desired impact on market sentiment. Looking ahead, there are expectations that the benchmark loan prime rate (LPR) could see a reduction in the coming days, particularly for the five-year tenor. Lowering the five-year LPR is seen as a measure to stabilise confidence, promote investment and consumption, and support the stable development of the real estate market. The monthly fixing of the LPRs is scheduled for February 20th, further indicating potential adjustments on the horizon. In its latest monetary policy implementation report, the PBOC reaffirmed its commitment to flexible policies aimed at boosting domestic demand while maintaining price stability. The central bank's stance underscores the ongoing efforts to navigate the complexities of the economic landscape, balancing the need for stimulus with stability concerns. As market dynamics continue to evolve, policymakers remain vigilant in their approach to sustaining economic growth. (With inputs from Reuters)

China’s Central Bank maintains policy stability while economic uncertainties persist

India is emerging as the best bet for global investors who are otherwise struggling to find growth. Most global hedge funds are shorting Chinese markets & investing in India for long-term growth. Watch to know more!

Indian markets witness record inflows in 2023

Global investors pivot to India, endorse Indian stocks

Consumers open wallets but only for essentials

The federal cabinet approves a 67% increase in the natural gas tariff. The decision came into effect from Feb 1, apparently to meet the revenue requirement of the gas utilities targeted for the current year. The question remains does the new government have a plan to bring the economy back on track. To know more watch this interview Foreign Affairs expert, Adnan Qaiser.

Pakistan: Economic headache for new government

The federal cabinet approves a 67% increase in the natural gas tariff. The decision came into effect from Feb 1, apparently to meet the revenue requirement of the gas utilities targeted for the current year. The question remains does the new government have a plan to bring the economy back on track.

How bad is Pakistan's debt crisis and can the IMF save it?

The volume of private equity deals is poised to grow in 2024, along with an increased focus on AI to drive long-term value creation, according to reports.

Global private equity outlook: Factors at play

WION's Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;

Ukraine refuses to remove Raiffeisen from "Sponsors of War" blacklist: Report

In a move intensifying geopolitical tensions, Ukraine has stood firm on its decision not to remove Raiffeisen Bank International from its "sponsors of war" blacklist despite pressure from Austrian political leaders and the bank itself.

<a href="https://www.wionews.com/business-economy/ukraine-refuses-to-remove-raiffeisen-from-sponsors-of-war-blacklist-report-690781">Read more here</a>

Nvidia options traders anticipate volatility surge ahead of earnings report

Traders in the US equity options market are bracing for a substantial movement in Nvidia's shares following the upcoming earnings report of the leading artificial intelligence chipmaker.

<a href="https://www.wionews.com/business-economy/nvidia-options-traders-anticipate-volatility-surge-ahead-of-earnings-report-690797">Read more here</a>

Biden's EV push pits Detroit profit against climate drive, industry leaders at odds

The Biden administration's push for a rapid transition to electric vehicles (EVs) is sparking a showdown with Detroit's automakers, threatening billions in profits and igniting debates over climate policy just as election tensions simmer.

<a href="https://www.wionews.com/business-economy/bidens-ev-push-pits-detroit-profit-against-climate-drive-industry-leaders-at-odds-690817">Read more here</a>

India raises windfall tax on crude oil amid global market volatility

In response to ongoing market fluctuations, the Indian government under Prime Minister Narendra Modi has announced a slight increase in the windfall tax on domestically produced crude oil and diesel.

<a href="https://www.wionews.com/business-economy/india-raises-windfall-tax-on-crude-oil-amid-global-market-volatility-690829">Read more here</a>

Red Sea crisis: Relief to US shippers as ocean freight rates show signs of easing

In the wake of the Red Sea crisis, which has ignited a surge in ocean freight rates, there are emerging indications that the upward trajectory of shipping costs on crucial trade routes may be tapering off, CNBC reported.

<a href="https://www.wionews.com/business-economy/red-sea-crisis-relief-to-us-shippers-as-ocean-freight-rates-show-signs-of-easing-690857">Read more here</a>

Paytm Payments Bank excluded from authorised banks list for FASTags: Report

India's road tolling authority has excluded Paytm Payments Bank from its list of 32 authorised banks for purchasing FASTags, signalling significant changes for the estimated 20 million Paytm FASTag users.

<a href="https://www.wionews.com/business-economy/paytm-payments-bank-excluded-from-authorised-banks-list-for-fastags-report-690862">Read more here</a>

US lawmaker wants watchdog to scrutinise Shein's IPO bid. Here's why

Republican Senator Marco Rubio has urged the US Securities and Exchange Commission (SEC) to intervene in the potential public listing of Shein, a popular E-commerce platform, unless the company provides additional disclosures regarding its business operations and the risks associated with operating in China.

<a href="https://www.wionews.com/business-economy/us-lawmaker-wants-us-watchdog-to-scrutinise-sheins-ipo-bid-heres-why-690868">Read more here</a>

Lockheed Martin ramps up weapons production amid heightened security demands

Lockheed Martin has announced its strategic plans to ramp up production of essential weapons systems in response to growing global security concerns.

<a href="https://www.wionews.com/business-economy/lockheed-martin-ramps-up-weapons-production-amid-heightened-security-demands-690869">Read more here</a>

Decoding US Federal Reserve's annual bank stress test scenarios

The US Federal Reserve has unveiled the scenarios for its annual bank stress tests, which assess the resilience of financial institutions to adverse economic conditions.

<a href="https://www.wionews.com/business-economy/decoding-us-federal-reserves-annual-bank-stress-test-scenarios-690880">Read more here</a>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Ukraine refuses to remove Raiffeisen from "Sponsors of War" blacklist: Report In a move intensifying geopolitical tensions, Ukraine has stood firm on its decision not to remove Raiffeisen Bank International from its "sponsors of war" blacklist despite pressure from Austrian political leaders and the bank itself.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Ukraine refuses to remove Raiffeisen from "Sponsors of War" blacklist: Report In a move intensifying geopolitical tensions, Ukraine has stood firm on its decision not to remove Raiffeisen Bank International from its "sponsors of war" blacklist despite pressure from Austrian political leaders and the bank itself. Read more here Nvidia options traders anticipate volatility surge ahead of earnings report Traders in the US equity options market are bracing for a substantial movement in Nvidia's shares following the upcoming earnings report of the leading artificial intelligence chipmaker. Read more here Biden's EV push pits Detroit profit against climate drive, industry leaders at odds The Biden administration's push for a rapid transition to electric vehicles (EVs) is sparking a showdown with Detroit's automakers, threatening billions in profits and igniting debates over climate policy just as election tensions simmer. Read more here India raises windfall tax on crude oil amid global market volatility In response to ongoing market fluctuations, the Indian government under Prime Minister Narendra Modi has announced a slight increase in the windfall tax on domestically produced crude oil and diesel. Read more here Red Sea crisis: Relief to US shippers as ocean freight rates show signs of easing In the wake of the Red Sea crisis, which has ignited a surge in ocean freight rates, there are emerging indications that the upward trajectory of shipping costs on crucial trade routes may be tapering off, CNBC reported. Read more here Paytm Payments Bank excluded from authorised banks list for FASTags: Report India's road tolling authority has excluded Paytm Payments Bank from its list of 32 authorised banks for purchasing FASTags, signalling significant changes for the estimated 20 million Paytm FASTag users. Read more here US lawmaker wants watchdog to scrutinise Shein's IPO bid. Here's why Republican Senator Marco Rubio has urged the US Securities and Exchange Commission (SEC) to intervene in the potential public listing of Shein, a popular E-commerce platform, unless the company provides additional disclosures regarding its business operations and the risks associated with operating in China. Read more here Lockheed Martin ramps up weapons production amid heightened security demands Lockheed Martin has announced its strategic plans to ramp up production of essential weapons systems in response to growing global security concerns. Read more here Decoding US Federal Reserve's annual bank stress test scenarios The US Federal Reserve has unveiled the scenarios for its annual bank stress tests, which assess the resilience of financial institutions to adverse economic conditions. Read more here

WION Business Wrap | Nvidia, Fed bank stress test, Paytm crisis and other stories

Japan's&nbsp;stock market is booming.&nbsp; The Japanese stock market index, Nikkei, has breached the 37,000-mark for the first time since 1990.

This marks the resurgence of Japan's&nbsp;share market, long shunned by global investors for its meagre returns.

The Tokyo stock market gained 28.2 per cent in 2023, surpassing the S&amp;P 500's 26.28 per cent increase last year.&nbsp;

Foreign investors continue to pour billions into the stock market, with the Nikkei rising by eight&nbsp;per cent in January.&nbsp;Two big factors have made the Tokyo Stock Exchange more attractive to foreign investors.&nbsp;

The recent corporate governance reforms have prompted companies to increase returns to shareholders. In addition, a weak yen has improved profits and helped Japanese stocks become more valuable.&nbsp;

No wonder, Warren Buffett, the greatest stock market trader alive, has been bullish about Japanese stocks.&nbsp;

Nikkei's 1989 record of 38.915 points is now in sight.&nbsp;

The stock market gains signal that Japan's three decades of economic stagnation may be nearing its end.&nbsp;

Japan's 'lost decades', which began in the 1990s and continues to this day, have been signified by "one-per cent" growth and deflation.

The country was once in the race to become a superpower, rivalling the economic might of the United States.&nbsp; In fact, the 1980s, American corporations faced tough competition from cutting-edge tech brands from Japan.&nbsp;

At the macro level, the US and Japan were locked in a tussle over&nbsp;trade.&nbsp; By the mid-1980s, the East Asian country had become the biggest trading partner of the United States.&nbsp;As the trade deficit began widening, the US&nbsp;began imposing several tariffs to bridge the gap.&nbsp;

Moreover, Japan became the biggest creditor of the US, further complicating the bilateral dynamics.&nbsp;

It won't be wrong to say that Japan of the 1980s closely mirrored present-day China.&nbsp;

So, what went wrong in the Japanese economic miracle?&nbsp;

It is generally believed that the asset price bubble of the 1980s shook the economy in the 1990s.&nbsp; The "euphoria" of consistent long-term economic growth boosted asset prices in Japan.&nbsp;

However, there was a major mismatch between the increase in asset prices and the actual economic fundamentals of the day.&nbsp;

Analysts narrow down the asset price bubble to the period between 1987 and 1990, when three major factors typical of a bubble co-existed.&nbsp;Prof Shigenori Shiratsuka put them as following: marked increase in asset prices, an expansion in money supply and credit, and an overheating economy.

The Bank of Japan's monetary easing -- increased money supply and easy credit -- played a big role in inflating the asset price bubble.&nbsp; Between 1986 and 1987, the Bank of Japan cut the borrowing rate from 5 per cent to the post-war low of 2.5 per cent.&nbsp;

External factors delayed a hike in the interest rates, especially the fear that a strong yen could hit Japan's vibrant export market.&nbsp;

By the time the central bank decided to hike rates in early 1989, the asset price bubble had grown too big to be ignored.&nbsp;

The two-year-long rate hike cycle pricked the proverbial "bubble", but not before prices&nbsp;peaked.&nbsp; As per estimates, the stock prices peaked in December 1989, land prices in the big cities peaked in September 1990, while the nationwide land prices peaked exactly a year later.&nbsp;

The central bank began to ease the monetary policy in mid-1991. But that failed to halt the contagion effect of the asset bubble burst.&nbsp;

The stock market plunged 60 per cent from December 1989 to August 1992, while land prices dropped throughout the 1990s, falling 70 per cent by 2001.&nbsp;

The immediate impact on Japan's real economy lingered&nbsp;for at least a decade.&nbsp;Between 1992 and 2003, the economy barely grew by over one per cent, while output could never achieve its earlier potential.&nbsp;

"Bubbles" are not a unique economic phenomena. Countries face them as part of the economic cycle. However, they mostly recover and grow.&nbsp;

But, as recent history tells us, Japan has never been able to mount a comeback since the price bubble burst. The asset price bubble and its aftermath is now a case study in economic management.&nbsp;

Of late, this crisis has re-entered the public sphere, as China's struggles with its weakening property sector.&nbsp; Many analysts believe that China is undergoing a 'Japanification', wherein demand collapses under the weight of deflation.&nbsp;

Whether China's 'Japanification' is a scare or an eventuality is still a matter of scholarly debates. Given China's massive size and influence, any comparison with the much-smaller Japan seems unfair.&nbsp;

But the island nation's crisis continues to serve as a reminder to maintain a stable macroeconomic policy, with one eye on "economic euphoria".&nbsp;

Japan's stock market is booming. The Japanese stock market index, Nikkei, has breached the 37,000-mark for the first time since 1990. This marks the resurgence of Japan's share market, long shunned by global investors for its meagre returns.

Japan's stock market is booming. The Japanese stock market index, Nikkei, has breached the 37,000-mark for the first time since 1990. This marks the resurgence of Japan's share market, long shunned by global investors for its meagre returns. The Tokyo stock market gained 28.2 per cent in 2023, surpassing the S&P 500's 26.28 per cent increase last year. Foreign investors continue to pour billions into the stock market, with the Nikkei rising by eight per cent in January. Two big factors have made the Tokyo Stock Exchange more attractive to foreign investors. The recent corporate governance reforms have prompted companies to increase returns to shareholders. In addition, a weak yen has improved profits and helped Japanese stocks become more valuable. No wonder, Warren Buffett, the greatest stock market trader alive, has been bullish about Japanese stocks. Nikkei's 1989 record of 38.915 points is now in sight. The stock market gains signal that Japan's three decades of economic stagnation may be nearing its end. Japan's 'lost decades', which began in the 1990s and continues to this day, have been signified by "one-per cent" growth and deflation. The country was once in the race to become a superpower, rivalling the economic might of the United States. In fact, the 1980s, American corporations faced tough competition from cutting-edge tech brands from Japan. At the macro level, the US and Japan were locked in a tussle over trade. By the mid-1980s, the East Asian country had become the biggest trading partner of the United States. As the trade deficit began widening, the US began imposing several tariffs to bridge the gap. Moreover, Japan became the biggest creditor of the US, further complicating the bilateral dynamics. It won't be wrong to say that Japan of the 1980s closely mirrored present-day China. So, what went wrong in the Japanese economic miracle? It is generally believed that the asset price bubble of the 1980s shook the economy in the 1990s. The "euphoria" of consistent long-term economic growth boosted asset prices in Japan. However, there was a major mismatch between the increase in asset prices and the actual economic fundamentals of the day. Analysts narrow down the asset price bubble to the period between 1987 and 1990, when three major factors typical of a bubble co-existed. Prof Shigenori Shiratsuka put them as following: marked increase in asset prices, an expansion in money supply and credit, and an overheating economy. The Bank of Japan's monetary easing -- increased money supply and easy credit -- played a big role in inflating the asset price bubble. Between 1986 and 1987, the Bank of Japan cut the borrowing rate from 5 per cent to the post-war low of 2.5 per cent. External factors delayed a hike in the interest rates, especially the fear that a strong yen could hit Japan's vibrant export market. By the time the central bank decided to hike rates in early 1989, the asset price bubble had grown too big to be ignored. The two-year-long rate hike cycle pricked the proverbial "bubble", but not before prices peaked. As per estimates, the stock prices peaked in December 1989, land prices in the big cities peaked in September 1990, while the nationwide land prices peaked exactly a year later. The central bank began to ease the monetary policy in mid-1991. But that failed to halt the contagion effect of the asset bubble burst. The stock market plunged 60 per cent from December 1989 to August 1992, while land prices dropped throughout the 1990s, falling 70 per cent by 2001. The immediate impact on Japan's real economy lingered for at least a decade. Between 1992 and 2003, the economy barely grew by over one per cent, while output could never achieve its earlier potential. "Bubbles" are not a unique economic phenomena. Countries face them as part of the economic cycle. However, they mostly recover and grow. But, as recent history tells us, Japan has never been able to mount a comeback since the price bubble burst. The asset price bubble and its aftermath is now a case study in economic management. Of late, this crisis has re-entered the public sphere, as China's struggles with its weakening property sector. Many analysts believe that China is undergoing a 'Japanification', wherein demand collapses under the weight of deflation. Whether China's 'Japanification' is a scare or an eventuality is still a matter of scholarly debates. Given China's massive size and influence, any comparison with the much-smaller Japan seems unfair. But the island nation's crisis continues to serve as a reminder to maintain a stable macroeconomic policy, with one eye on "economic euphoria".

Flashback Friday | How the asset price bubble dragged Japan's economy

In the face of dwindling job opportunities amid&nbsp;a sluggish economy, a growing number of young Chinese, like 23-year-old Chu Yi, are embracing the concept of "lying flat" – a term describing individuals who work minimally to sustain themselves while prioritising personal interests and well-being over corporate pursuits.

According to a Reuters report, Chu, formerly employed at a fashion company, abandoned her job due to excessive overtime demands and dissatisfaction with her superiors. She currently dedicates just one day a week to remote work for a travel company, reserving the rest of her time for a six-month tattooing apprenticeship, aspiring to become a full-time tattoo artist.

Chu's decision to "lie flat" is reflective of a broader trend among young Chinese, although precise statistics on this phenomenon are unavailable. The youth unemployment rate surged to a record high of 21.3 per cent in June 2023 amidst economic struggles exacerbated by the pandemic's lingering effects.

Many recent college graduates are opting for lower-paying jobs as they navigate the challenging job market. Chu articulated her disillusionment with traditional employment, stating, "For me, there is not much meaning to work." She views corporate roles as primarily serving the interests of managers rather than personal fulfillment.

With an estimated 280 million individuals belonging to Generation Z in China, born between 1995 and 2010, surveys indicate a prevailing sense of pessimism within this demographic. This generation faces the daunting task of finding stability amid economic uncertainty, presenting a significant policy challenge for Chinese President Xi Jinping.

The Ministry of Human Resources recently acknowledged the need for concerted efforts to bolster youth employment in 2024, recognising the importance of addressing the concerns of young people like Chu.

Zhou Yun, an assistant professor of sociology at the University of Michigan, sheds light on the underlying complexities driving the trend of "lying flat" among Chinese youth. While some may interpret it as a rejection of the corporate rat race, Zhou emphasises the profound pessimism harbored by many young people regarding their future prospects. The confluence of economic slowdown, stringent social hierarchies, and political constraints complicates the landscape for young individuals navigating their professional paths.

Despite the challenges posed by her unconventional career choices, Chu maintains that prioritising her own well-being and interests over corporate pressures has brought her newfound happiness and fulfillment. She acknowledges that her current income, though modest, suffices to cover her daily expenses.

Chu values her leisure time far more than the monetary rewards offered by traditional employment. Her testimony underscores a shifting mindset among young Chinese, who increasingly prioritise personal satisfaction over conventional notions of success.

(With inputs from Reuters)

In the face of dwindling job opportunities amid a sluggish economy, a growing number of young Chinese, like 23-year-old Chu Yi, are embracing the concept of "lying flat" – a term describing individuals who work minimally to sustain themselves while prioritising personal interests and well-being over corporate pursuits.

In the face of dwindling job opportunities amid a sluggish economy, a growing number of young Chinese, like 23-year-old Chu Yi, are embracing the concept of "lying flat" – a term describing individuals who work minimally to sustain themselves while prioritising personal interests and well-being over corporate pursuits. According to a Reuters report, Chu, formerly employed at a fashion company, abandoned her job due to excessive overtime demands and dissatisfaction with her superiors. She currently dedicates just one day a week to remote work for a travel company, reserving the rest of her time for a six-month tattooing apprenticeship, aspiring to become a full-time tattoo artist. Chu's decision to "lie flat" is reflective of a broader trend among young Chinese, although precise statistics on this phenomenon are unavailable. The youth unemployment rate surged to a record high of 21.3 per cent in June 2023 amidst economic struggles exacerbated by the pandemic's lingering effects. Many recent college graduates are opting for lower-paying jobs as they navigate the challenging job market. Chu articulated her disillusionment with traditional employment, stating, "For me, there is not much meaning to work." She views corporate roles as primarily serving the interests of managers rather than personal fulfillment. With an estimated 280 million individuals belonging to Generation Z in China, born between 1995 and 2010, surveys indicate a prevailing sense of pessimism within this demographic. This generation faces the daunting task of finding stability amid economic uncertainty, presenting a significant policy challenge for Chinese President Xi Jinping. The Ministry of Human Resources recently acknowledged the need for concerted efforts to bolster youth employment in 2024, recognising the importance of addressing the concerns of young people like Chu. Zhou Yun, an assistant professor of sociology at the University of Michigan, sheds light on the underlying complexities driving the trend of "lying flat" among Chinese youth. While some may interpret it as a rejection of the corporate rat race, Zhou emphasises the profound pessimism harbored by many young people regarding their future prospects. The confluence of economic slowdown, stringent social hierarchies, and political constraints complicates the landscape for young individuals navigating their professional paths. Despite the challenges posed by her unconventional career choices, Chu maintains that prioritising her own well-being and interests over corporate pressures has brought her newfound happiness and fulfillment. She acknowledges that her current income, though modest, suffices to cover her daily expenses. Chu values her leisure time far more than the monetary rewards offered by traditional employment. Her testimony underscores a shifting mindset among young Chinese, who increasingly prioritise personal satisfaction over conventional notions of success. (With inputs from Reuters)

Rising trend of 'lying flat' among Chinese youth reflects economic pessimism

Japan is no longer the third-largest economy in the world. The Asian country has lost that position to Germany, after contracting for the last six months of 2023 and entering a recession. Official data shows that Japan's economy unexpectedly shrank due to weak domestic demand. This has raised uncertainty about the central bank's plans to exit its ultra-easy monetary policy this year.

Japan no longer third-largest economy

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Germany, the fourth-largest economy, is grappling with a series of challenges as the new year unfolds. Recent strikes and protests have disrupted transportation networks and underscored deeper issues within the country's economy.

According a CNN report, a strike by Lufthansa ground crew, following earlier walkouts by train drivers and road blockages by farmers, has compounded travel chaos. These events highlight the depth of the malaise gripping Germany, as it contends with economic headwinds and structural weaknesses.

The economic landscape in Germany presents a mixed picture. Despite being the fourth-largest economy globally, Germany experienced a contraction last year, the first since the onset of the Covid-19 pandemic. Forecasts for 2024 aren't optimistic, with the International Monetary Fund predicting sluggish growth. Factors contributing to this downturn include high energy prices, borrowing costs, and weakened demand both domestically and internationally.

The energy crisis, catalysed by Russia's war in Ukraine, has exacerbated Germany's industrial woes. Official data revealed a concerning trend of industrial production decline, marking the longest slump on record according to CNN. However, the challenges extend beyond external shocks. Germany's structural issues encompass labour shortages, bureaucratic red tape, and outdated infrastructure, impeding productivity.

Marcel Fratzcher, president of the German Institute for Economic Research, advocates for a fundamental economic transformation. He emphasises the need to reshape Germany's industry to address long-term challenges. While the government has initiated measures such as incentivizing investment and easing immigration rules, experts argue that more extensive reforms are necessary to navigate the economic overhaul.

Germany's economic narrative is intertwined with its historical resilience and adaptability. From the post-World War II "Wirtschaftswunder" to overcoming the challenges of reunification, Germany has demonstrated resilience in the face of adversity. However, cracks in its business model are emerging, with shifts in global dynamics posing significant challenges.

Constanze Stelzenmuller from the Brookings Institution told CNN about Germany's vulnerability due to its strategic dependencies. The reliance on external factors for security, growth, and energy needs exposes Germany to risks in an increasingly competitive global landscape. Slowing growth in China, a major export market, and protectionist measures in the United States further compound these challenges.

Amidst these challenges, Germany's economic strengths remain undeniable. The country continues to attract foreign investment and boasts a thriving manufacturing sector as per CNN. Companies like Jungheinrich and MAN Energy Solutions exemplify innovation and adaptation, offering solutions aligned with climate-friendly technologies and global market demands.

Karl Haeusgen, president of Germany's Machinery and Equipment Manufacturers Association, told CNN, emphasising the resilience of German industries despite challenges. He acknowledges the need for adaptation but underscores the profound strengths of the country's industrial base. As Germany navigates through economic turbulence, the path to recovery may lie in leveraging its inherent strengths and fostering innovation.

Germany, the fourth-largest economy, is grappling with a series of challenges as the new year unfolds. Recent strikes and protests have disrupted transportation networks and underscored deeper issues within the country's economy.

Germany, the fourth-largest economy, is grappling with a series of challenges as the new year unfolds. Recent strikes and protests have disrupted transportation networks and underscored deeper issues within the country's economy. According a CNN report, a strike by Lufthansa ground crew, following earlier walkouts by train drivers and road blockages by farmers, has compounded travel chaos. These events highlight the depth of the malaise gripping Germany, as it contends with economic headwinds and structural weaknesses. The economic landscape in Germany presents a mixed picture. Despite being the fourth-largest economy globally, Germany experienced a contraction last year, the first since the onset of the Covid-19 pandemic. Forecasts for 2024 aren't optimistic, with the International Monetary Fund predicting sluggish growth. Factors contributing to this downturn include high energy prices, borrowing costs, and weakened demand both domestically and internationally. The energy crisis, catalysed by Russia's war in Ukraine, has exacerbated Germany's industrial woes. Official data revealed a concerning trend of industrial production decline, marking the longest slump on record according to CNN. However, the challenges extend beyond external shocks. Germany's structural issues encompass labour shortages, bureaucratic red tape, and outdated infrastructure, impeding productivity. Marcel Fratzcher, president of the German Institute for Economic Research, advocates for a fundamental economic transformation. He emphasises the need to reshape Germany's industry to address long-term challenges. While the government has initiated measures such as incentivizing investment and easing immigration rules, experts argue that more extensive reforms are necessary to navigate the economic overhaul. Germany's economic narrative is intertwined with its historical resilience and adaptability. From the post-World War II "Wirtschaftswunder" to overcoming the challenges of reunification, Germany has demonstrated resilience in the face of adversity. However, cracks in its business model are emerging, with shifts in global dynamics posing significant challenges. Constanze Stelzenmuller from the Brookings Institution told CNN about Germany's vulnerability due to its strategic dependencies. The reliance on external factors for security, growth, and energy needs exposes Germany to risks in an increasingly competitive global landscape. Slowing growth in China, a major export market, and protectionist measures in the United States further compound these challenges. Amidst these challenges, Germany's economic strengths remain undeniable. The country continues to attract foreign investment and boasts a thriving manufacturing sector as per CNN. Companies like Jungheinrich and MAN Energy Solutions exemplify innovation and adaptation, offering solutions aligned with climate-friendly technologies and global market demands. Karl Haeusgen, president of Germany's Machinery and Equipment Manufacturers Association, told CNN, emphasising the resilience of German industries despite challenges. He acknowledges the need for adaptation but underscores the profound strengths of the country's industrial base. As Germany navigates through economic turbulence, the path to recovery may lie in leveraging its inherent strengths and fostering innovation.

Germany faces economic challenges amid strikes and structural issues

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