ISTANBUL — Turkey’s foreign trade deficit has surged beyond $45 billion so far this year, data showed on Thursday, as fallout from the pandemic extended the economy’s worst slump in President Tayyip Erdogan’s nearly two decades in power.
The sharp trade imbalance, including a jump of $5 billion in November alone, approached the $55 billion deficit logged in 2018, when a currency crisis marked the end of years of hot economic growth fueled by cheap foreign credit.
Since mid-2018, year-on-year growth has averaged roughly 0.5% due to a roller-coaster of recession, strong recovery and another deep contraction in the second quarter of 2020, when the economy was mostly shuttered to curb COVID-19.
Before that, steady annual growth of around 5% economic growth that propelled Erdogan to five straight election wins, the last in 2018. But since then, the lira has halved in value.
This year alone, it has lost nearly 20% against the dollar, the second worst performance among emerging market currencies – despite rallying in the last two months, since Erdogan overhauled his economic leadership and pledged a new, market-friendly era.
Measures to curb COVID-19, which has killed nearly 21,000 people in Turkey, have slashed key tourism revenues, and record levels of dollarisation in a country heavily reliant on imports, have exacerbated the chronic trade deficit.
Most Major Economies Are Shrinking. Not China’s. – The New York Times
The Chinese economy grew 2.3 percent last year, the country’s National Bureau of Statistics announced on Monday in Beijing.
SHANGHAI — As most nations around the world struggle with new lockdowns and layoffs in the face of the surging pandemic, just one major economy has bounced back after bringing the coronavirus mostly under control: China.
The Chinese economy rose 2.3 percent last year, the country’s National Bureau of Statistics announced on Monday in Beijing. By contrast, the United States, Japan and many nations in Europe are expected to have suffered steep falls in economic output.
China’s strength seemed improbable a year ago, when the virus emerged in the central Chinese city of Wuhan. As travel and business ground to nearly a halt, the economy shrank 6.8 percent in the January-March period compared with 2019, the first contraction in nearly half a century.
Since then, the economy has improved steadily, finishing the year with growth of 6.5 percent in the last three months compared to the same period in 2019. While the recovery remains uneven, factories across China are running in overdrive to fill overseas orders and cranes are constantly busy at construction sites — a boom in exports and debt-fueled infrastructure investments that is expected to drive the economy in the coming year.
At stalls in the Wuhan Taiyuan Textile Market in Hubei Province, garment factory managers have been ordering large bolts of cloth to fill domestic and international apparel orders. At Xuzhou Construction Machinery Group in Jiangsu Province, the plants have been running day and night to keep up with demand for new earthmovers and pile drivers. And at Huahong Holding Group, a large exporter in Zhejiang Province of framed prints and oil paintings, profits have doubled.
“This is the only major economy that quickly recovered from the pandemic and could run business normally,” said Zhou Linlin, a Shanghai financier on Huahong’s board. “So all these orders from everywhere are coming to China.”
The stock market in Shanghai was up nearly 1 percent late on Monday. It had already climbed 16 percent over the past year as domestic and foreign investors placed large bets on a continued economic recovery.
The overall resilience of China’s economy, though, masks pockets of weakness.
Jobs abound for blue-collar workers, but have been scarce for recent college graduates with little experience. Service businesses like hotels and restaurants did well late last year in big coastal cities like Beijing and Shanghai, but never fully recovered in inland provinces. Makers of consumer electronics or personal protective equipment have benefited from the pandemic, but exporters to poor countries devastated by disease have not.
Zhang Shaobo, the owner of a Halloween mask factory in Yiwu, received word last March that one of his most consistent export customers in India was sick with the coronavirus. By May, the man was dead. New customers from Mr. Zhang’s main markets in India and South America also stopped coming to China to look at his latest products.
He laid off all but four of his 20 factory workers, and began making preparations to close his shop at Yiwu’s wholesale market. With business so weak, he said, “I am not going to keep renting it.”
China’s top leader, Xi Jinping, acknowledged the economic challenges in a speech published on Friday by a Communist Party journal, Qiushi.
“There are profound adjustments underway to the international economy, technology, culture, security and politics, and the world has entered a period of turbulent change,” Mr. Xi said in the speech, which was delivered in August. “In the coming period, we face an external environment of increased headwinds and counter-currents, and we must prepare to respond to a series of new risks and challenges.”
Those challenges could worsen in the weeks ahead. After considerable success in taming the coronavirus, China has suffered a series of small outbreaks of late. The government has mobilized swiftly, by building hospitals, imposing mass testing and putting at least 28 million people under lockdown.
The authorities are starting to reimpose a wide variety of health checks that are discouraging consumers from spending money. Even before the recent outbreaks, not everyone was prospering. Consumer confidence never fully recovered last year. Chinese families have proved particularly wary of big-ticket expenditures, like home remodeling projects or new furniture.
Growth in retail sales faltered in December, slowing to 4.6 percent from 5 percent the month before. Ning Jizhe, the commissioner of the National Bureau of Statistics, attributed this to the renewed spread of the virus, saying that, “this has brought some uncertainty to the economy.”
Lin Jinting, a manual laborer in Wuhan, can usually earn nearly $100 a day carrying heavy loads home for shoppers. Now, many are deferring major purchases, and work is scarce.
“I came here at 8 o’clock this morning and I haven’t had any orders today,” he said on a recent afternoon.
Keeping the virus at bay has been critical to China’s economic success over the past year. While the pandemic ravages other nations, Beijing’s aggressive top-down approach kept the virus from spreading rapidly across the country.
In China, there have been nearly 100,000 total reported cases and fewer than 5,000 deaths, mostly centered in Wuhan; about 150 cases a day have been reported in the current outbreaks. In the United States, there have been over 220,000 cases a day and 3,300 daily deaths.
Mary Wu, a 26-year-old saleswoman in Jiande in southeastern China, was only allowed to leave her apartment once every three days during a lockdown last spring. Local schools closed for her children, aged 4 and 9. But life quickly returned to normal, schools reopened and Ms. Wu and her family began eating out again.
Ms. Wu even sent her elder child to extra classes to make sure that he caught up on any ground he lost. She no longer worries much about the virus.
“We all wear masks,” she said.
With the virus largely under control, Beijing has relied on its old playbook to rev up the economy.
When Wuhan was still under lockdown, the authorities moved to get manufacturing up and running again in other areas. They provided long-haul buses to get workers back from their home villages to factories after Chinese New Year. State-owned banks extended special loans to factories, while many government agencies gave partial refunds of business taxes that had been paid before the pandemic.
Already the world’s largest manufacturer, China widened its lead this year. Despite the trade war and tariffs, American and European companies turned to China parts and goods, when factories elsewhere struggled to meet demand. Factories within China turned to nearby suppliers to replace imports as transoceanic supply lines became less dependable.
The “Made in China” label has been especially popular as people stuck in their homes have redecorated and renovated. At the Xingxing Refrigeration factory in Taizhou, managers can’t hire workers fast enough to keep up with strong demand for freezer chests for people who want to store more food during pandemic lockdowns.
The consumer electronics sector in China is especially strong right now, for white-collar and blue-collar workers alike. When American managers were no longer able to travel to China last spring to oversee tech projects, demand surged for electronics project managers who were already in China.
“Companies were scooping up anyone they could find,” said Anna-Katrina Shedletsky, the chief executive of Instrumental, a remote quality monitoring system used by global brands to track and manage electronics manufacturing.
Beijing also ramped up its infrastructure spending. Every major city in China was already connected with high-speed rail lines, enough to span the continental United States seven times, but new lines were rapidly added last year to smaller cities. New expressways crisscrossed remote western provinces. Construction companies turned on floodlights at many sites so that work could continue around the clock.
Exports and infrastructure fueled much of the growth over the past year. China’s exports grew 18.1 percent in December compared with the same month a year earlier, and were up 21.1 percent in November. Fixed-asset investment in everything from high-speed rail lines to new apartment buildings climbed 2.9 percent last year.
Both are expected to power the economy in 2021.
The Chinese Academy of Social Sciences predicted last week that the country’s economy would expand 7.8 percent this year. If it does, it would be China’s strongest performance in nine years.
Liu Yi, Coral Yang and Amber Wang contributed research.
Janet Yellen says US must 'act big' to revive flagging economy – The Guardian
Economic Policy Advisor Provides Analysis of the United States Economy During 2000-2016 and Solutions for Improving Growth in Comprehensive Treatise – GlobeNewswire
ZOETERMEER, Netherlands, Jan. 19, 2021 (GLOBE NEWSWIRE) — Dutch economic policy advisor and international independent consultant Marc Stoffers has long been intrigued by the United States’ economic development. Despite the tools and resources at its disposal, the U.S. continues to suffer losses to market share both domestically and globally and has seen a decline in its overall economic growth. In his new book, “Problems and Possibilities of the US Economy,” Stoffers lays bare the ramifications of this downturn and, employing the Global Innovation Index (GII), identifies areas of opportunity for the U.S. to excel.
Using the GII, Stoffers investigates how the U.S. meets the pillars for Innovation Input and Innovation Output compared to other countries. He finds that the U.S.is a global leader in market sophistication and a top 10 country in knowledge and technology output as well as business sophistication. However, there are other areas where the U.S. is less successful such as institutions and creative output. To make matters worse, the U.S. lags firmly behind in relation to infrastructure and human capital and research.
As Stoffers explains in the text, the U.S.’s struggle to maintain a fierce competitiveness across all pillars has led to decreased market share and resulted in deficits to the balance of payment and the federal budget, inequality within the labor force and wage stagnation and has had a negative impact on employment. Using the GII, Stoffers creates a regression between the scores of several other countries and their gross domestic product (GDP). He then calculates the growth that would result from the U.S. becoming a global leader in every pillar.
By suggesting measures such as advancing the quality of schools, incentivizing students to pursue careers in science, technology, engineering and mathematics (STEM), increasing sustainable development and nurturing a favorable investment climate, Stoffers demonstrates that there is a clear pathway for the U.S. to regain stability and balance, and decrease inequality between groups in society. Ultimately, through “Problems and Possibilities of the US Economy,” he instills hope that the U.S. can reclaim its position as a top performer in the global economy.
“The U.S. economy can be made healthier by introducing an improvement of skills, a level playing field with foreign competitors and a more robust innovation system,” said Stoffers. “A stronger U.S. can emerge and lead the Western World easier and more efficiently than before.”
About the author
Marc Stoffers graduated from the University of Tillburg with a master’s degree in business econometrics. After completing his military service, he served as a policy advisor for the Bureau for Economic Policy Analysis (Centraal Planbureau). Since retiring, he has acted as an independent freelance consultant involved in model building and economic analysis for macroeconomic projects in various international countries. Stoffers currently resides in Zoetermeer, Netherlands.
Xlibris Publishing, an Author Solutions, LLC imprint, is a self-publishing services provider created in 1997 by authors, for authors. By focusing on the needs of creative writers and artists and adopting the latest print-on-demand publishing technology and strategies, we provide expert publishing services with direct and personal access to quality publication in hardcover, trade paperback, custom leather-bound and full-color formats. To date, Xlibris has helped to publish more than 60,000 titles. For more information, visit xlibris.com or call 1-888-795-4274 to receive a free publishing guide.
Leslie Standridge LAVIDGE 4809982600 firstname.lastname@example.org
Central Health reveals more details over vaccine hiccup, as N.L. reports no new cases of COVID-19 – CBC.ca
Ford frustrated over vaccine delays as Ontario records 1,913 new COVID-19 cases – CBC.ca
Spain's Bautista Agut apologizes for comparing hotel for Aussie Open quarantine to jail – CBC.ca
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Galaxy M31 July 2020 security update brings Glance, a content-driven lockscreen wallpaper service
Sports22 hours ago
Maple Leafs avoid disaster scenario with Jason Spezza clearing waivers – Yahoo Canada Sports
Business2 hours ago
3 Qualities to Look for When Hiring New Employees
Sports20 hours ago
Maple Leafs avoid disaster scenario with Jason Spezza clearing waivers – Yahoo Sports
Health23 hours ago
Orillia hospital to temporarily lead Roberta Place nursing home in controlling COVID-19 outbreak – Global News
Health19 hours ago
Survey offers glimpse of what could reopen in Manitoba – Winnipeg Free Press
Sports2 hours ago
Jets’ Laine to sit second straight game Tuesday vs. Senators – Sportsnet.ca
News2 hours ago
Get your hand on spray foam rigs for sale in Canada
Tech23 hours ago
Galaxy S21 vs. S20 vs. S20 FE vs. Note 20 specs compared: All of Samsung's updates – CNET