India’s merchandise exports could face major headwinds next year with the World Trade Organization (WTO) slashing its forecast for global trade volume growth to 1 per cent from 3.4 per cent estimated earlier. Meanwhile, global foreign-currency reserves are falling at the fastest pace on record as central banks from India to the Czech Republic intervene to support their currencies. Read more on these in our top headlines.
WTO slashes global 2023 trade growth forecast to 1% as recession looms
India’s merchandise exports could face major headwinds next year with the World Trade Organization (WTO) slashing its forecast for global trade volume growth to 1 per cent from 3.4 per cent estimated earlier, citing increasing downside risks. The Geneva-based multilateral body said on Wednesday that world trade may lose momentum in the second half of 2022 and remain subdued in 2023 as multiple shocks weigh on the global economy. Read more
World currency reserves shrink by $1 trn this yr in record drawdown
Global foreign-currency reserves are falling at the fastest pace on record as central banks from India to the Czech Republic intervene to support their currencies. Reserves have declined by about $1 trillion, or 7.8%, this year to $12 trillion, the biggest drop since Bloomberg started to compile the data in 2003. Part of the slump is simply due to valuation changes. As the dollar jumped to two-decade highs against other reserve currencies, like the euro and yen, it reduced the dollar value of the holdings of these currencies. Read more
RIL bats for no caps on domestic gas price as govt panel seeks review
Mukesh Ambani-led Reliance Industries (RIL) has asked a government-appointed panel to desist from putting price caps on domestically produced natural gas, arguing that any such move would be retrograde and would delay investments in fuel production. The panel headed by former Planning Commission member Kirit S Parikh was set up last month, just ahead of the October gas price revision, with the task of suggesting a “fair price” for the fuel after taking into account the needs of both producers and users. Read more
Jet Airways revival: Jalan-Kalrock accept bank call to infuse more capital
With the Jalan-Kalrock consortium resolution strapped firmly in place, Jet Airways is a step closer to getting airborne. The new promoter of the carrier has agreed to the demands made by banks for infusion of capital, thereby clearing the decks for the airline’s smooth lift-off. At a meeting held last week, lenders asked the Jet Airways management to bring in capital before restarting operations. “They agreed to bring in capital,” said a banker. Jet Airways declined to comment when contacted. Read more
Festival sales: Consumer firms see robust demand across categories
The nine-day Navratri festival, which concluded with Dussehra on Wednesday, has brought unexpected riches to retailers of consumer-facing firms despite persistently high inflation and rate increases by the Reserve Bank of India. Most of them said the first leg of the period from Navratri to Diwali had been the best in the past two to three years as consumers lapped up everything — from cars and electric scooters to mobile phones, consumer appliances and apparel. The bounty comes after two consecutive years of Covid-induced dry spells. Read more
