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| Leading US investment firms BlackRock and JPMorgan Chase will help Ukraine set up an investment bank to rebuild its economy after the conflict with Russia. (Source: Reuters) |
World economy
The number of commercial aircraft worldwide will double in the next 20 years.
US aircraft manufacturer Boeing expects the number of commercial aircraft in operation worldwide to double in the next 20 years, slightly higher than the forecast just announced by rival Airbus.
Boeing expects 48,575 new aircraft to enter service in 2042, compared with 24,500 in 2022. North America will account for 23% of these new aircraft, with the Asia- Pacific region accounting for 22%, Eurasia 21% and China alone 20%.
In 2022, Boeing forecast that the world will need 47,080 aircraft by 2041. Rival manufacturer Airbus has also just forecast that the world will need 40,850 passenger and cargo aircraft by 2042, bringing the total number of global aircraft to 46,560.
Boeing also expects low-cost carriers to double in size over the next 20 years – significant growth, but slower than the six-fold increase over the past 20 years.
Demand for cargo aircraft will also remain strong, with Boeing predicting that air cargo growth will outpace global trade growth. (AFP)
US economy
* US Federal Reserve (Fed) Chairman Jerome Powell said in his prepared remarks for a hearing before the House Financial Services Committee (June 21-22) that the Fed may have to continue raising interest rates to control inflation.
According to Mr. Powell, nearly all members of the Fed's Federal Open Market Committee believe it would be appropriate to raise interest rates by the end of the year. The Fed has raised interest rates by 5 percentage points since March 2022, from near zero to 5-5.25%. However, Mr. Powell said inflation is still far above the US central bank's long-term target of 2%. (AFP)
* According to data released by the US Department of Commerce on June 20, the number of single-family home construction starts in May rose to the highest level in more than 30 years, a sign that the housing market may be turning positive after the Fed paused raising interest rates.
Compared to the same period last year, the number of housing starts in May 2023 was 1.631 million units, up from 1.34 million units in April and the highest level since April 2022. In terms of quantity, the increase of 291,000 units started in May was the highest since January 1990. In terms of percentage, May 2023 recorded the largest increase since October 2016 at 21.7%.
Future building permits also rose 5.2% in May to 1.491 million, the highest level since October 2022. (Reuters)
Chinese Economy
* The slowdown in the Chinese and global economies is the biggest issue affecting European companies in the Northeast Asian country, according to the European Union (EU) Chamber of Commerce in China (EUCCC). The number of European companies that consider China as a top destination for future investment is at its lowest level since data was collected in 2010.
The report also said that three times as many European companies reported a decline in their revenue from China in 2022 as in 2021, while China's importance to companies' global profits declined for the second year in a row. (Reuters)
* China's customs data on June 20 showed that China's oil imports in May 2023 reached their highest level since Russia launched a special military operation in Ukraine in February 2022.
China imported 9.71 million tonnes of oil from Russia in May 2023, up sharply from 5.4 million tonnes in February 2022 and 6.3 million tonnes in March 2022. The figures show that China's imports of Russian crude have nearly doubled since the Russia-Ukraine tensions began. (AFP)
European Economy
* France and Germany clashed on June 16 over reform of EU fiscal rules, with both countries claiming to have the support of many other European governments in a debate that is unlikely to be resolved before the end of the year.
"We have tried in the past to introduce automatic and unified rules, but that has led to recession and economic difficulties, falling output and growth in Europe," said French Finance Minister Bruno Le Maire.
Meanwhile, his German counterpart Christian Lindner took the opposite view, saying that automatic rules are fine and necessary, that countries need to be treated equally, that numerical standards are needed, that a common safeguard is needed, and that it should not take too much time for the European Commission (EC) to negotiate bilaterally with member states. (Reuters)
* Head of the German Energy Regulator Klaus Mueller on June 20 welcomed resolutions adopted by the agency's advisory council, calling for preparations for the coming winter.
On his personal Twitter page, Mr. Mueller called the recently passed resolutions “important,” saying that these resolutions will ensure planning to ensure supply security through a drill, with multiple scenarios, the ability to save and digitize crisis management.
The nine-point plan calls on the German Energy Authority to reach out to states that want to participate in a crisis exercise, scheduled for September 2023, to avoid a crisis scenario that could occur amid supply shortages and high energy prices, especially as Germany embarks on a green transition. (VNA)
* From January to April this year, hotel and accommodation prices in Paris increased by nearly 30% and the Paris City Council hopes to curb this surge ahead of the 2024 Paris Olympic Games.
During this period alone, around 11.6 million tourists visited the Grand Paris area, up 27.2% compared to 2022 and almost reaching the level of 2019, a year before the Covid-19 pandemic appeared.
It is estimated that tourists spend an average of 390 euros on accommodation costs using credit cards compared to 365 euros before the pandemic.
It is estimated that around 37 million tourists will visit the Grand Paris this year, close to the 38.5 million in 2019. (Le Monde)
* On June 15, on the sidelines of the St. Petersburg International Economic Forum taking place from June 14-17, Anatoly Pechatnikov, Vice President of Russia's VTB Bank, said that the bank plans to expand the geographical scope of cross-border transfers in national currencies to 25 countries by the end of this year. According to him, this can first be achieved with India and Turkey.
This year's St. Petersburg International Economic Forum discussed key trends and prospects, systemic changes to the global economy. (VNA)
* Leading US investment firms BlackRock and JPMorgan Chase will help Ukraine establish the "Development Fund of Ukraine" (FDU), an investment bank to rebuild the economy after the conflict with Russia .
The FDU will attract low-cost funds from other countries, donors and international financial institutions in a “blended finance” approach used elsewhere. These are expected to be five to 10 times larger than individual investments and worth hundreds of billions of dollars. Priority will be given to areas such as infrastructure, climate and agriculture.
Estimates of the cost of reconstruction vary widely. In March 2023, the World Bank, the Ukrainian government, the European Commission and the United Nations estimated that the figure would reach $411 billion. Other estimates put the figure at $1 trillion if all economic costs are taken into account. The entire value of Ukraine's economy before the conflict was around $100 billion. (VNA)
* Italy's inflation rate in May 2023 remained higher than the Eurozone average for the eighth consecutive month. According to data released by the Italian National Statistics Agency (ISTAT) on June 16, Italy's consumer price index in May stood at 7.6% year-on-year, while the annual inflation rate in the 20 Eurozone countries was 6.1%.
The last time inflation in the Eurozone was higher than in Italy was in September 2022, when it was 9.9% and 8.9%, respectively. The Bank of Italy forecasts inflation in the country at 6.1% in 2023, while the European Central Bank (ECB) forecasts inflation in the Eurozone at 5.4%. (TTXVN)
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| The ECB forecasts Eurozone inflation at 5.4% in 2023. (Source: Reuters) |
Japanese and Korean Economy
* On June 18, Japanese electric motor manufacturer Nidec announced that it will establish a joint venture with aircraft manufacturer Embraer (Brazil) to meet the growing market demand for components in the aerospace sector.
Nidec will hold a 51 percent stake in the Nidec Aerospace joint venture, which will develop electric propulsion systems for the aerospace industry, while its Brazilian partner will own the remainder. The companies did not disclose the amount of capital needed, but said the new joint venture will be headquartered in St. Louis, Missouri, by September. (Japan Times)
* South Korea imported 2,129 tons of seafood from Japan in May, down 30.6 percent from a year earlier , according to data from the Korea Customs Service, amid concerns over plans to release radioactive water from the Fukushima Daiichi nuclear power plant into the sea.
Statistics show that South Korea's import turnover of Japanese seafood decreased by 1.8% compared to the same period last year to 14.06 million USD. In April, seafood imports decreased by 26% compared to the same period last year in volume and 9.7% in value. (TTXVN)
* At the emergency economic ministers' meeting and export investment policy conference on June 21, Deputy Prime Minister in charge of economy and Minister of Planning and Finance of Korea Choo Kyung-ho emphasized that the government will further enhance competitiveness in industrial exports and create favorable conditions for businesses to invest.
Mr. Choo Kyung-ho also emphasized that the "circular economy" - the reuse of waste - is receiving attention as a new strategic direction and development model in achieving the goal of carbon neutrality. Accordingly, the government will quickly apply this economy to the domestic industry to create new development momentum. (Yonhap)
ASEAN Economy and Emerging Economies
* According to data from starupranking.com , Indonesia is ranked 6th among the countries with the most startups in the world .
Speaking at the Open Finance Summit 2023 in Jakarta on June 21, Deputy Minister for Economic Affairs Rudy Salahuddin said that by 2023, Indonesia will have more than 2,400 startups. According to Deputy Minister Rudy, Indonesia has great potential to become a giant in the digital economy.
According to the Startup Ranking Data, the US leads with 74,944 startups, followed by India (15,405), the UK (6,833), Canada (3,712), and Australia (2,638). Indonesia ranks 6th with 2,486 startups. This makes Indonesia the only ASEAN member in the top 10 countries with the most startups. (VNA)
* The International Institute for Management Development (IMD) on June 20 released the World Competitiveness Rankings 2023 report, in which Malaysia jumped 5 places to 27th place in the ranking of the world's most competitive economies.
According to the report, Malaysia's improvement in the competitiveness ranking was mainly supported by economic recovery, investment growth and bright spots in exchange rate stability and the job market. Malaysia's areas of strength include pricing, basic infrastructure and tax policy. (VNA)
* Thailand's rice exports could exceed 8 million tonnes this year, driven largely by rising global demand as countries stockpile rice to cope with the El Nino weather phenomenon, Commerce Minister Jurin Laksanawisit said.
The Philippines is expected to increase its rice imports to 2-3 million tons, while Indonesia is pushing for large purchases from both Thailand and Vietnam. Outside Southeast Asia, Iraq is expected to import about 1 million tons this year, on par with 2022.
This year, Thailand aims to export 7.5 million to 8 million tons of rice. (Vietnam News Agency)
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