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Cambodia: China’s growth slowed in Q2, Singapore’s economy shrunk, reports Moody’s

  • Jul 13, 2021

Figures out this week are likely to provide more signs of slowing growth in Asian economies. China releases its second quarter gross domestic product (GDP) on Thursday. Moody’s Analytics is forecasting a slowdown to 6.5 percent growth, from a 13 percent jump in the first three months of the year. It forecasts 8 percent growth for the full year. China’s GDP rose just 2.3 percent in 2020, the slowest pace in more than 40 years.

China’s industrial production may have grown at a slower pace in June. Moody’s says output eased to an 8 percent year-on-year increase, compared with 8.8 percent growth during the previous month.

“China’s goods-producing industries continue to power the economy forward, but the pace of growth will ease further in the second half,” Moody’s says.

Industrial production figures are released on Thursday along with retail sales data, which Moody’s forecasts will show a 10.5 percent increase on June 2020, slowing from 12.4 percent year-on-year growth the previous month. A five-day holiday in May helped lift the month’s sales figures.

Singapore’s economy may have contracted in the April to June quarter. Moody’s says figures out tomorrow  will show GDP shrank by 1.4 percent. The government says the economy is expected to grow by 4 to 6 percent this year but it plans to review its forecast next month. Singapore’s GDP shrunk by 5.8 percent last year, the worst economic performance since independence in 1965.

The region’s central banks are leaving monetary policy loose until the negative economic effects of the Coronavirus pandemic start to ease. Australia and Malaysia left their benchmark rates on hold last week. The Reserve Bank of New Zealand will keep its official cash rate at 0.25 percent tomorrow, according to Moody’s Analytics. It says the Bank of Korea will keep rates at 0.5 percent on Thursday and Japan’s central bank will also hold pat, keeping rates at -0.1 percent when its July meeting wraps up on Friday.

Source: https://www.khmertimeskh.com/50892776/chinas-growth-slowed-in-q2-singapores-economy-shrunk-reports-moodys/