Thailand
Asian economic week ahead: Malaysia’s economy probably shrunk, South Korean unemployment grows
Malaysia’s economy probably contracted during the second quarter of the year as Coronavirus restrictions hit consumer spending. Its gross domestic product (GDP) contracted 0.2 percent compared with the first quarter, according to Moody’s analytics. GDP rose 2.7 percent over the second quarter.
“Although recovering external demand and higher commodity prices have supported export-oriented manufacturers, movement control orders have dragged on consumption over this period. Dampened domestic demand and a moderate trade surplus, relative to the [previous] quarter, are expected to have led to a mild quarterly contraction over this period,” said economists Shahana Mukherjee and Katrina Ell. New Malaysian GDP figures are due out this Friday.
With domestic demand staying weak, factories are probably cooling the pace of production in Malaysia. Figures expected this week are forecast to show 4.5 percent growth in output compared to a year earlier. Industrial production rose 26.0 percent in May.
Stabilising food prices are keeping inflation in check in China. The consumer price index (CPI) rose 1.0 percent in July, slowing from a 1.1 percent rise the previous month, Moody’s said.
Producer prices are still heading higher at a rapid pace. China’s National Bureau of Statistics reported that the July producer price index (PPI), which measures the cost of goods at the factory gate, rose to 9.0 percent on-year..
South Korea’s unemployment rate is most likely to have ticked up to some 3.8 percent in July from 3.7 percent in June, Moody’s said.
“Extended distancing restrictions weighed on the consumption of services and hurt employment prospects, particularly in customer-facing industries,” Moody’s said.
Source: https://www.khmertimeskh.com/50912686/asian-economic-week-ahead-malaysias-economy-probably-shrunk-south-korean-unemployment-grows/