Economy

Southeast Asia's Worst Virus Outbreak Hammers Indonesia Economy – BNN

Published

4 years ago

February 6, 2021

A motorist rides past closed stores in Seminyak, Bali, Indonesia, on Friday, Jan. 22, 2021. Movement restrictions in Bali were extended by two weeks to Feb. 8 as the government sought to curb the spread of coronavirus infections.
, Bloomberg

(Bloomberg) — Indonesia’s economy capped its first annual contraction since the 1998 Asian financial crisis as the region’s worst coronavirus outbreak continued to sap activity through the fourth quarter.

Gross domestic product in the final three months of 2020 fell by 2.19% from a year earlier, the statistics bureau said Friday. The median estimate in a Bloomberg survey was for a contraction of 2.3%. For the full year, GDP slipped 2.07%, in line with a 2.1% drop economists forecast.

Southeast Asia’s largest economy has struggled to find a clear path out of recession, as looser curbs on movement during much of the fourth quarter hastened the virus spread yet failed to spur private consumption. Covid-19 infections and deaths continued to rise by record numbers in January, prompting more stringent anti-virus measures and raising doubts about whether Indonesia could return to growth this quarter.

Key Insights

Private consumption, which accounts for roughly 60% of Indonesia’s GDP, will be key to any rebound. Latest economic indicators point to still-tepid demand, with core inflation notching a historic low in January. Retail sales continue to fall while consumers remain pessimistic
Trade and investment can give the economy a reprieve. Higher commodity prices and stronger overseas demand drove exports to a better-than-expected performance in December, while factory activity continues to expand
The government has scaled up stimulus as it looks to achieve 5% GDP growth this year. It raised the budget to 619 trillion rupiah ($44 billion), 66% more than its initial estimate, which will fund tax breaks, cash subsidies and free vaccines, among other items

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Bank Indonesia has pledged to keep monetary policy loose, saying it sees no “immediate concern” of inflation. Governor Perry Warjiyo said in January that monetary authorities have room to cut interest rates further and are weighing further action
Indonesia’s Financial System Stability Committee is working on a policy package that aims to overcome the credit crunch and lift bank lending to businesses. Credit growth fell 2.4% in 2020 despite liquidity injections from the central bank and the government’s credit-guarantee program
The economy shrank 0.42% from the previous quarter on a non-seasonally adjusted basis, worse than the 0.22% drop forecast by economists.

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

2 days ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

3 days ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

4 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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