US job growth surprises, China continues to lead the global electric vehicle market, 6 EU countries want to tighten sanctions on Russian oil, Germany has negative growth for the second consecutive year... are outstanding world economic news.
 |
| Six EU countries have called on the EC to lower the $60/barrel price ceiling that the G7 countries have imposed on Russian oil. (Source: Alamy) |
World economy
Positive outlook for global electric vehicle sales in 2025
Electric car sales hit a record high in 2024, growing 25% globally. Sales surged in China but slowed in Europe.
President-elect Donald Trump’s plan to end electric car sales incentives is expected to hurt sales in the world’s largest economy, the United States, by 2025. On the other hand, tightening emissions limits in Europe could help boost electric car sales.
Figures released by British consultancy Rho Motion on January 14 showed that 17.1 million battery-powered cars (excluding hybrids) were sold worldwide last year. China continued to lead the world's electric vehicle market, with 11 million sold, up 40% from 2023. Electric vehicle sales also increased in the United States and Canada, up 9% to 1.8 million vehicles. Meanwhile, in Europe, sales fell 3% to 3 million vehicles, after four years of strong growth.
According to Rho Motion, government policy plays a key role in driving the growth of this category because electric cars are still significantly more expensive than other types. Accordingly, the end of the German government's incentives for consumers caused sales there to fall sharply last year, while sales jumped 21.4% in the UK, due to sales targets imposed on carmakers.
US economy
* According to a report released by the US Department of Labor on January 10, the country's job growth unexpectedly accelerated in December 2024, helping the labor market end 2024 on a solid footing and reinforcing the US Federal Reserve's cautious stance in slowing the pace of interest rate cuts in 2025.
Specifically, the non-farm sector grew by 256,000 jobs in December 2024, higher than the forecast of many economists participating in the Reuters survey of 160,000 jobs. The job growth figure for November 2024 was also revised up to an increase of 212,000 jobs.
Accelerating job growth in December 2024 pushed the unemployment rate down to 4.1%, from 4.2% in November, helping the US labor market end the year on solid footing and reinforcing the Fed's cautious stance in slowing the pace of interest rate cuts this year.
Chinese Economy
* Bloomberg News reported on January 14 that Chinese officials are considering selling TikTok's US operations to billionaire Elon Musk, as the video-sharing platform faces a US law that would require it to transfer or shut down TikTok owned by Chinese company ByteDance by January 19.
Citing sources familiar with the matter, Bloomberg News said that selling TikTok in the US to billionaire Elon Musk is one of the options being discussed in Beijing. Currently, TikTok's estimated value in the US fluctuates between 40-50 billion USD.
* The latest Reuters survey results show that China's economic growth may slow to 4.5% in 2025 and continue to fall to 4.2% in 2026. In that context, the country's policymakers are expected to deploy more stimulus measures to reduce the impact of the US's increased import tariffs.
China's gross domestic product (GDP) is forecast to grow 4.9% in 2024, close to the government's annual growth target of around 5%, thanks to stimulus measures and strong exports, according to the median forecast of 64 economists polled by Reuters.
However, the world's second-largest economy is facing rising trade tensions with the United States, as President-elect Donald Trump, who has proposed sharply higher tariffs on Chinese imports, prepares to return to the White House next week.
European Economy
* On January 13, the European Union (EU) announced a humanitarian aid package worth 148 million Euros for Ukraine and Moldova , aiming to provide food, clean water, medicine, shelter and medical services to the Ukrainian people, with special priority given to the severely affected areas in the East and South. Part of the aid is also for Moldova to support refugees from Ukraine.
European Commissioner Hadja Lahbib visited Ukraine to assess the situation. The EU reaffirmed its commitment to humanitarian assistance to the region.
* The EU is considering retaliatory measures after a European Commission (EC) investigation found that China had systematically discriminated against imported medical equipment in public procurement tenders.
According to a newly published report, the EC has presented evidence that China has unfairly restricted EU medical device manufacturers' access to government contracts.
The findings mark the conclusion of the first investigation under the new International Procurement Instrument (IPI), which comes into force in August 2022 and aims to protect European businesses when participating in non-EU public procurement markets.
* Six EU countries on January 13 called on the EC to lower the price ceiling of $60 per barrel that the Group of Seven (G7) countries have imposed on Russian oil.
In a letter to the EU executive, Sweden, Denmark, Finland, Latvia, Lithuania and Estonia said the measures targeting oil export revenues were important because they reduced Russia’s most important source of income. They believed now was the right time to tighten sanctions by lowering the G7 oil price ceiling.
* Germany's Federal Statistical Office (Destatis) announced on January 15 that the country's gross domestic product (GDP) will decrease by 0.2% in 2024, the second consecutive year of negative growth for Europe's largest economy. Previously, in 2023, the German economy decreased by 0.3%.
Preliminary figures for the fourth quarter of 2024 also showed that the German economy contracted by 0.1% compared to the third quarter of 2024. Germany has been struggling with a cost-of-living crisis for the past few years, partly due to rising energy prices related to the Russia-Ukraine conflict.
* The EC is reviewing investigations involving major technology companies, including Apple, Meta and Alphabet's Google.
The move comes as major tech companies have called on US President-elect Donald Trump to oppose the EU's strict oversight of the companies.
A source said Mr Trump’s upcoming presidency was a factor in the review, but said Mr Trump’s victory was not the primary reason for the review.
Japanese and Korean Economy
* According to banking industry data, bank loans in Japan hit a record high of 605.8 trillion yen (about 3.845 trillion USD) at the end of 2024, up 4.4% from the previous year.
The increase reflected strong corporate demand for working capital amid rising raw material prices and a weakening yen, as well as rapid capital investment, mainly by large companies. The data covered 110 member banks of the Japan Bankers Association.
* Confidence among Japanese manufacturers recovered in January 2025, after falling the previous month, amid good growth conditions in the materials industry, according to a Reuters Tankan survey.
The survey of 505 large Japanese non-financial firms showed confidence rebounded most markedly in upstream industries such as steel, oil refining and chemicals thanks to rising global demand, while other sectors such as auto manufacturing and electronics saw confidence decline in January 2025.
Recent data shows that Japanese workers' wages have increased across the board and the inflation rate remains above the 2% target.
* According to the Ministry of Trade, Industry and Energy of South Korea on January 15, the government will spend 1,500 billion won (equivalent to 1.02 billion USD) in 2025 to encourage consumers to buy electric vehicles (EV).
The move is aimed at stimulating a recovery in domestic demand for electric vehicles amid slowing sales due to concerns over battery safety and lack of access to charging stations.
By the end of 2024, the total number of electric vehicles and hydrogen fuel cell vehicles will reach 720,000 units, of which electric vehicles will account for 680,000 units. Sales of electric vehicles in Korea will fall 9.7% year-on-year to 147,000 units in 2024, marking a decline for the second consecutive year.
* South Korea's employment growth rate has slowed sharply in 2024. Notably, this figure even dropped to negative levels in December 2024, as the political situation in South Korea continued to be unstable after the martial law incident.
According to the report “Employment Trends for December and the Whole Year 2024” released by Statistics Korea on January 15, the number of employed people in 2024 is 28.576 million, an increase of 159,000 people, equivalent to 0.6%, compared to 2023. This is the lowest employment growth since 2020, when Korea recorded negative numbers due to the impact of the Covid-19 pandemic.
ASEAN Economy and Emerging Economies
* As ASEAN Chair in 2025, Malaysia may propose to host a discussion between Southeast Asian member states and the BRICS group of leading emerging economies to diversify trade relations and reduce dependence on traditional partners.
Speaking to reporters, Chairman of Emir Research, Datuk Rais Hussin, said the move would help ASEAN strengthen economic integration, especially in the context of global instability.
* Indonesia is considering plans to reduce trade tariffs with the United States as President-elect Donald Trump prepares to impose tariffs on imported goods. Some Indonesian products have long been subject to import duties in the United States, signaling a challenging trade relationship that could deepen under the Trump administration.
The Indonesian government plans to present the plan as part of a broader bilateral cooperation effort to mitigate the possibility of increased US tariffs under Trump's leadership.
* Thailand attracted record investment in 2024, with applications exceeding 1.13 trillion baht, the highest level in the past decade.
Board of Investment (BOI) Secretary-General Narit Therdsteerasukdi revealed that 2024 saw a significant increase in both the number and value of investment applications in Thailand, reaching 3,137 projects - up 40% year-on-year, the highest level since the BOI was established. Investment value jumped 35% to 1.138 trillion baht, marking the highest figure in a decade.
Source: https://baoquocte.vn/kinh-te-the-gioi-noi-bat-6-quoc-gia-eu-muon-siet-trung-phat-dau-nga-trung-quoc-co-the-ban-tiktok-tai-my-malaysia-thuc-day-hop-tac-asean-brics-301097.html
Comment (0)