Asia Economic Weekly
亚洲经济周报
Issue No. 15
（2013.04.12-2013.04.19）
Highlights: OECD Deputy Secretary General Richard Boucher thought the biggest change
of current Asian industries is investment in intellectual property instead of factories and
infrastructure. He said 80 percent of the added value in the world economy continued to come
from OECD countries, which add incremental value through the way of invest in intellectual
assets including value education and develop tertiary industry.
Research and Training Institute
Boao Forum for Asia
博鳌亚洲论坛研究院
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【Weekly Review】
The Economic Observer: Concern on the shift of Asia twofold
industries in progress Fortescue Metals Group Ltd (FMG), the
world’s fourth largest iron ore producer supplied 60 million tons of
iron ore to China in 2012 and it will reach to 100 million to 120
million tons in 2013; as the world’s leading commercial
transportation and construction equipment maker, Swiss Volvo
Group has came into China’s rural market while plans to invest in
China, Thailand and India.
【Economic Developments】
ADB: Warns Asia of asset bubble risk The Asian Development
Bank reported that Asian developing countries should be wary of
asset bubbles, against a backdrop of ample money flowing into the
region.
China: First quarter GDP up by 7.7% to 11.8 trillion yuan
China: Fiscal revenue of local government expand 13.7 percent
benefited from real estate The local governments saw fiscal
revenue increased on the back of robust transactions in the housing
market.
China: First quarter private investment increased to 3.6 trillion
yuan In the first quarter, the private investment in fixed asset
nationwide has increased to 3.6763 trillion yuan, a year-on-year
increase of 24.1 percent in nominal terms (after deducting price
factors, the actual growth of 23.9 percent), down 0.5 percentage
points than that of January to February.
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Japan: 2012 money supply rose by 2.1 percent
Japan: Continue quantitative easing policy indefinitely until a 2
percent inflation target is sustainable Bank of Japan Gov.
Haruhiko Kuroda said on April 12 in a speech in Tokyo that the
central bank will keep its quantitative easing policy in place until its
2 percent inflation target is achieved.
Japan: Fund reached the highest level by the end of March since
2008
South Korea: Central bank keeps benchmark interest rate
unchanged for six straight months South Korea’s central
bank—Bank of Korea announced on April 11 to freeze the
benchmark interest rate on hold at 2.75 percent. It has kept the same
interest rate for six months since November 2012.
South Korea: To draw up US$15.5 billion extra budget to revive
economy South Korea proposed a 17.3 trillion won (US$15.5
billion) supplementary budget on April 16 to help generate jobs and
boost the economy
Singapore: To offer free metro rides during morning peak-hours
India: Inflation gauge eased to below 6 percent for the first time
over the last two years
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India: March wholesale price index declined to a 3-year low
India's wholesale price index (WPI) rose by 5.96 percent in March,
the lowest rate in more than three years, indicating the inflation is
easing, government latest data showed.
Australia: Jobless rate in March hit a three-year high as 5.6
percent
Eurozone: Posts trade surplus of 10.4 billion euros in February
while import decrease by 7 percent As import decreased by 7
percent in February, the 17-nation Eurozone posted a trade surplus of
10.4 billion euros, data from the European Union Statistics office
Eurostat.
Europe: Five countries appeal to drop banking secrecy to fight
tax evasion French Minister for Economic Affairs and Finance
Pierre Moscovici said recently that, the finance ministers of France,
Germany, Britain, Spain and Italy has jointly announced to EU for
the automatic exchange of information on bank depositors to fight
against tax evasion.
U.S.: Obama signs order for $109 billion of reduction to
discretionary spending
U.S.: 12 million fewer over the past eleven years who get
healthcare The share of Americans who get health benefits through
work dropped to 60 percent and U.S. employers provided coverage
for 159 million people in 2011, 12 million fewer than in 2000,
according to a report released by the Robert Wood Johnson
Foundation.
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【Trade & Investment】
World Bank: Will lend India up to $5 billion a year to alleviate
poverty
China: Vanke enters Singapore realty market China Vanke Co.
will invest 135.5 million Singapore dollars for a 30 percent stake in
an upscale condominium project in Singapore, making its third
project outside mainland China.
Argentina: Diary leading brand first to Chinese market China’s
huge milk powder market grab attentions of dairy companies in
South America. Recently, SanCor infant formula milk powder, the
leading diary brand of Argentina hit the market of Greater China.
Russia: Will vote $51.8 billion to ensure the status of space
power and position
【Regional Cooperation】
China, U.S.: California opens Trade and Investment Office in
China ten years later to promote trade
Japan, U.S.: Conclude preparatory negotiations over TPP talks
Japan and the United States on April 11 agreed on a deal paving the
way for Japan to join into the Trans-Pacific Partnership talks and the
full details are expected to be released recently.
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Japan: To form nuclear agreements with Turkey and UAE to
enable exports of Japan's nuclear power technologies
China, Russia: Bilateral trade expected to reach $200 billion in
2020 The current China-Russia relationship has sustained a sound
developmental momentum and the bilateral trade will be kept growth
trend in the future. Trade is believed to have a good chance of
reaching the $100 billion and $200 billion goals set for 2015 and
2020 respectively, a Ministry of Commerce official said on April 16
during the Canton Fair.
【Authoritative Forecasts】
World Bank: East Asia should consider stimulus withdrawal
Asia's emerging economies should consider reining in monetary
stimulus to curb the risks of asset bubbles and inflation as policy
easing in developed nations spur capital inflows, the World Bank
said.
IMF: Cut China’s 2013 growth forecast to 8 percent The
International Monetary Fund released the latest World Economic
Outlook and cut its forecast for China economic growth to 8 percent
in 2013and 8.2 percent in 2014, down by 0.1 percent and 0.3 percent
than its January estimate respectively.
IMF: Road to recovery remain bumpy in the advanced
economies and Eurozone is of concern The International Monetary
Fund released the latest World Economic Outlook recently, pointing
that the global prospects have improved again and expecting global
growth of 3.3 percent in 2013 and 4 percent in 2014 respectively.
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IMF: To cut U.S. growth forecast as recovery stuck There has
been some disharmonious sounds support that it is not true even
more and more people trust the recovery of the United State
economy is going well.
JP Morgan: Cut China’s economic growth to 7.8 percent in 2013
Goldman Sachs: Japanese stock market will surge another 20%
within one year Goldman Sachs upgrade its 12-month target for
Nikkei 225 index and Topix. It increased its target for Nikkei 225
index to 16,000 from 15,000 and for the Topix to 1,350 from 1,250
earlier, which marks a near 20 percent upside from current levels.
Financial News: China’s forex reserves is amounted to the size of
German economy China's foreign exchange reserves jumped $130
billion to $3.44 trillion in the first quarter, roughly the size of the
German economy, top of the world.
Moody’s: Japan’s bold monetary easing cannot resolve the
structural problems
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