Russia grows for the first time in a year, the US 'escapes danger', China loses momentum, Czech Republic does not want to use the Euro

Russia grew for the first time in a year, the US reached an agreement to raise the debt ceiling, China lost its recovery momentum, electricity prices in Europe fell to negative levels, Indonesia banned the export of liquefied natural gas... are the world economic highlights of the past week.

Russia's economy grew for the first time in a year in April 2023 - up 3.3% after falling 0.7% in March 2023. (Source: RIA Novosti)

World economy

US calls on APEC to find solutions to global challenges

US Trade Representative Katherine Tai on May 25 called on Asia-Pacific Economic Cooperation (APEC) trade ministers to “think creatively” to find solutions to a range of challenges from fragile supply chains, the worsening climate crisis and rising inequality.

Leaders need to build on and strengthen recent World Trade Organization (WTO) agreements to better serve workers and build a more sustainable trading system, Tai said.

In her opening remarks at the APEC Trade Ministers’ Meeting in Detroit, US, on May 25-26, Tai highlighted the proposal to build on the multilateral momentum seen at last year’s WTO ministerial meeting, which produced the first new agreements in years, including curbs on fisheries subsidies and partial intellectual property rights waivers for Covid-19 vaccines.

Economic growth in the APEC region is forecast to pick up slightly to 3.1% this year, after a moderate 2.6% expansion in 2022. A new economic analysis report released by the APEC Policy Support Unit forecasts the region's growth to slow to 2.8% in 2024. (Reuters)

US economy

* On May 31, the US House of Representatives passed a bill to suspend the borrowing limit for 2 years with 314 votes in favor and 117 votes against, just days before the possibility of the US defaulting on its public debt for the first time.

After weeks of tense negotiations between President Joe Biden and House Speaker Kevin McCarthy, the two sides finally reached an agreement over the weekend to temporarily remove the $31.4 trillion debt limit until January 1, 2025. The move paves the way for the federal government to continue borrowing money to pay for national expenses on time. (Kyodo/ Reuters)

Chinese Economy

* On May 26, the Chinese Ministry of Commerce issued a statement saying that during a meeting with his US counterpart Gina Raimondo on May 25 in Washington, Chinese Commerce Minister Wang Wentao raised key concerns about US economic and trade policies towards China , including semiconductors, export controls and foreign investment reviews.

The two sides agreed to establish communication channels to maintain and promote exchanges on specific economic and trade-related concerns and cooperation topics, according to the ministry. (Reuters)

* China's manufacturing activity contracted for the second consecutive month in May 2023, according to official data released on Thursday, the latest sign that the world's second-largest economy is losing momentum.

The official manufacturing purchasing managers' index (PMI) - a key gauge of factory output - fell to 48.8 in May, the National Bureau of Statistics (NBS) said, below the 50-point mark that separates growth from contraction. The reading followed a decline of 49.2 in April, reversing a three-month expansion trend and below the median estimate of 49.5 from economists polled by Bloomberg . (AFP)

European Economy

* Several European countries have seen negative electricity prices in the daytime wholesale energy market over the past week, driven largely by abundant renewable energy sources and plunging gas prices amid low demand. This is good news for European households, who have been struggling with persistently high prices.

In addition, plummeting gas prices on the continent also contributed greatly to the sharp drop in electricity prices.

The European benchmark natural gas futures contract fell as much as 6.9% last Friday (May 26), recording a weekly loss of 19% and extending the losing streak to an eighth consecutive week. The decline extended the European gas's decline this year to 68%. (TTXVN)

* The Russian Ministry of Economic Development in its report "Current economic situation" on May 31 said that the Russian economy grew for the first time in a year in April 2023 - up 3.3% after falling 0.7% in March 2023. In the period from January to April, the Russian economy fell by 0.6%.

According to the ministry, gross domestic product (GDP) in April increased by 0.2% compared to the previous month, excluding seasonal factors, after increasing by 1.1% a month earlier. Russia's GDP growth forecast for 2023 is 1.2%. (TTXVN)

* On its official website on May 31, the Russian government announced that it had imposed a temporary ban on the export of bullets and shell casings.

According to a decree signed by Russian Prime Minister Mikhail Mishustin, a temporary ban on the export of ammunition for civilian and military rifles, as well as cartridges for rifles, will be in effect until December 31 of this year.

The ban does not apply to ammunition used by the Russian Armed Forces, as well as other Russian soldiers and military organizations. The Russian government said the decision is aimed at protecting the country's interests. (THX)

* Recently, the German Federal Statistical Office (Destatis) announced data showing that this leading European economy declined slightly in the first quarter of 2023 compared to the previous quarter, with GDP falling by 0.3% in the first quarter of 2023. Along with a 0.5% decline in the fourth quarter of 2022, the German economy has recorded two consecutive quarters of negative growth and officially fallen into a technical recession. (TTXVN)

* French inflation cooled to a one-year low in May due to moderate increases in energy and food prices.

French consumer prices rose by 6.0% in May 2023, after rising by 6.9% in April 2023, the French national statistics agency (INSEE) said. This is also the lowest level since May 2022. In particular, energy price inflation slowed down, falling from 6.8% in April 2023 to 2.0% in May 2023, while food price inflation also fell from 15.0% to 14.1%.

Food prices rose after producers and retailers agreed to raise prices by an average of 10% in price negotiations in March 2023. (TTXVN)

* Czech Prime Minister Petr Fiala affirmed on May 26 that the country has no plans to join the Eurozone. The Czech government believes that the task of reducing the budget deficit and controlling inflation should be given more priority in the current term than the plan to use the Euro.

The Czech Republic is still facing high inflation. In April 2023, the Central European country's inflation rate fell to 12.7% from 15% in March 2023. Meanwhile, the Czech budget deficit in the first four months of 2023 reached CZK 200 billion (USD 9 billion). The total Czech government budget deficit for the entire 2023 fiscal year is expected to be CZK 295 billion (USD 13.4 billion). (TTXVN)

The Czech Republic has no plans to join the Eurozone. (Source: Getty)

Economy of Japan and South Korea

* According to a survey by Teikoku Databank, about 3,575 items in Japan will increase in price in June 2023 , including items with a second price increase and items with the same price but reduced product volume.

Teikoku Databank conducted a survey of 195 major food and beverage manufacturers in Japan. The results showed that 1,670 seasoning products and 1,612 processed food items will have their prices increased by companies in June 2023. Among processed food items, instant noodles will have the highest price increase with 567 products.

According to Teikoku Databank, in the context of rising prices of imported wheat, fresh milk and electricity prices, many items in Japan are expected to continue to increase in price in July 2023. The number of items with increased prices from the beginning of the year to July 2023 could reach 30,000 products, exceeding the figure for the whole year of 2022. (TTXVN)

* Japanese government data just released showed that Japan's unemployment rate in April 2023 decreased by 0.2 percentage points compared to the previous month to 2.6%, marking the first improvement in the past three months, as the economy continued to recover from the Covid-19 pandemic.

The job availability ratio remained unchanged at 1.32 in April 2023, indicating that there were 132 job openings for every 100 job seekers, according to government data. The number of job openings in April 2023 fell 0.6% from the previous month, while the number of job seekers fell 0.7%. (Kyodo)

* According to data from the Bank of Korea (BoK), overseas card spending by Koreans increased by nearly 15% in the first quarter of 2023 thanks to the relaxation of Covid-19 pandemic control measures and increased direct purchasing power.

According to the BOK, the amount of money spent by South Koreans using cards, including credit and debit cards, overseas reached $4.6 billion in 2022, up from $4 billion three months earlier. Compared to the same period last year, the overseas spending by South Koreans increased 50.3%. (Yonhap)

ASEAN Economy and Emerging Economies

* Within the framework of the Seoul Food 2023 International Food Exhibition (SF 2023), on May 30, the ASEAN-Korea Center held the opening ceremony of a pavilion displaying food and beverage products from ASEAN member countries and creating opportunities for ASEAN companies to connect and establish business partnerships with Korean partners.

The event is a good opportunity for ASEAN SMEs in the food industry to further enhance their ability to penetrate the Korean market, as well as establish business networks with Korean customers.

Interested Korean companies are arranged and connected with business opportunities both directly and online. (TTXVN)

* Indonesia and Malaysia have officially launched cross-border transactions via Standard Quick Response Code (QRIS) payments after months of testing.

The integration of payment systems brings convenience to people of both countries as the number of traffic and transactions between the two neighboring countries is often very high. In 2022, Malaysia accounted for 19% of foreign tourists to Indonesia with about 1.03 million arrivals, while the previous year it ranked second after Timor-Leste with about 480,700 arrivals. (TTXVN)

* On May 30, Indonesian Coordinating Minister for Maritime Affairs and Investment (Marves) Luhut Binsar Pandjaitan said that the government is planning to limit liquefied natural gas (LNG) exports to meet growing domestic consumption demand.

According to Mr. Luhut, a summary report on LNG exports has been sent to the President, and he affirmed that despite the proposed restrictions, signed LNG export contracts will continue to be implemented as usual.

Indonesia currently imports petrochemical products, but the continued development of the petrochemical industry in North Kalimantan province is expected to help reduce imports as well as industrial gas prices. (TTXVN)

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