Increase Investment, Standard Chartered Support Indonesia to Taiwan

 Standard Chartered Bank Indonesia will support Indonesia’s investment promotion in the Standard Chartered Group Forum business forum on June 14, 2017 in Taiwan.

In this promotion, Standard Chartered Bank Indonesia will cooperate with the Investment Coordinating Board.

Standard Chartered Bank Indonesia General Manager Rino Donosepoetro will help promote investment in Indonesia to UK bank clients in the forum.

“Standard Chartered is one of the largest banks in Taiwan, and key key clients in Taiwan are large companies and investor groups that are interested in investing,” he said after signing the MoU with BKPM on Wednesday (05/31/2017) .

Not only that, Standard Chartered Bank Indonesia will help fund the credit for investors who are interested in entering Indonesia because the company has experience in this country for 154 years.

Standard Chartered Bank Indonesia will also carry out many roadshows to several countries, including China.

According to Rino, he is committed to being a strategic partner of BKPM in particular and the Indonesian government in general.

“By leveraging our global network, Standard Chartered is helping the government to promote Indonesia’s investment potential abroad,” he said.

During this time, he saw that the interest of foreign investment for Indonesia is increasing. Standard Chartered believes that the Indonesian government’s progress in implementing structural reforms has been a key factor in raising the interest of foreign investors. “So the context of Indonesia as a top destination for foreign investors is real.”

Since its experience as Indonesia’s leading leader in issuing sovereign debt and sukuk, Standard Chartered sees increasing interest from foreign investors.

Previously, BKPM and Standard Chartered Bank Indonesia cooperated with the promotion and service of banks for foreign investors interested in investing in Indonesia.

Head of BKPM Thomas Trikasih Lembong said that the MoU is a step towards building cooperation with international financial institutions.

“This is one of BKPM’s efforts to increase the flow of investment to Indonesia,” he said during the memorandum of understanding.

BKPM is committed to working with the international economic community to increase foreign direct investment to Indonesia.

He hopes Standard Chartered, a pioneer bank in some developing countries, will be able to help Indonesia’s investment promotion, as the Indonesian president hopes to increase investments from non-traditional countries such as Africa, India and beyond.

Through the MoU, Lembong hopes to build cooperation with the international economic community.

Rino Donosepoetro said he is committed to being a strategic partner of BKPM in particular and the general government.

“By leveraging our global network, Standard Chartered is helping the government to promote Indonesia’s investment potential abroad,” he said.

Prior to the MoU, Standard Chartered Bank Indonesia had socialized the service and the BKPM to 50 relationship managers and employees of the bank’s commercial banking team.…

After the leadership of Trump, US Global Business Competitiveness Dropped

The rating of the global competitiveness of the United States registered a decrease after Donald Trump was elected President of the United States.

In the IMD World Competitiveness Center 2017 report, Uncle Sam ranks fourth in the 63 countries surveyed.

The report says that global business executives’ perceptions of the US economy have been compounded by the growing question of protectionism and the threat of political instability after Trump’s election.

The situation has left the United States out of the top three positions it has held in recent years. The United States should be happy to be under Hong Kong, Switzerland and Singapore. Although Washington ranked first in 2015.

“I am confused with the US, to be honest, because they are usually consistent among the top three. Obviously there is an increasingly negative perception in this country,” said senior economist IMD Center for Global Competitiveness Jose Caballero, As quoted by Bloomberg, Thursday (6/1/2017).

Caballero, however, said polls conducted by more than 6,250 global business executives have no political trends across the country, including the United States. He affirmed, there are 261 indicators that are considered by the institution.

Business executives, he added, feared that the threat of protectionism and political instability would undermine the efficiency of their business in the United States. Although, entrepreneurs are optimistic about the US economy. Will be slightly helped by the decrease in unemployment and the beginning of a stable national inflation rate.

Caballero said the next year’s Global Competitiveness Report aims to provide a clearer and clearer picture of the impact of Trump’s leadership on the competitiveness of US companies.

The reason, Washington is expected to begin to show clarity about Trump’s policy campaigns over the years. Some of the policies that are expected to increase US global competitiveness. Are the cuts in national fiscal tariffs and the deregulation of business rules that have been repeated by the presidential cabinet of the 45 United States.…

3 reasons Why The Fed Raised its Interest Rate

For the Federal Reserve, the US economy is headed for further strengthening and these are the three reasons that justify the increase of its rate of Federal Funds.

The Fed raised its benchmark rate by 25 basis points to 0.75-1.0 percent on Wednesday, its third increase in the past three years after employment and inflation.

For the Fed, this movement is a precautionary one, since the economic conditions of the United States point to a greater strengthening of the economy, to continue with the expansion of productive investments, the creation of jobs and greater inflation, in this case Attributed to an increase in the price of energy.

These are the Fed’s three reasons for increasing its Federal Funds rate.

1. LABOR MARKET

With regard to the labor market, the Fed notes that in February there was a continuous strengthening of the labor market, along with a moderate expansion of economic activity; As a result, job creation remains solid and the unemployment rate shows slight changes in recent months. The Committee’s expectations suggest that with a gradual adjustment in monetary policy, economic activity will expand at a moderate pace and labor market conditions will be strengthened a little more.

2. INFLATION

In its statement, the Fed mentions that inflation has increased in recent quarters, approaching the long-term goal of 2 percent. Market expectations suggest that inflation gains remain low, but in long-term expectations the latest polls indicate that few changes are expected. The Committee’s expectations for inflation point to stabilizing at around 2 percent in the medium term. He also noted that he will continue to closely monitor the behavior of this indicator.

3. CONSUMER CONFIDENCE

In addition, as a result of job creation, the Committee notes that household expenditure continued to increase moderately, while gross fixed investment in business appears to have been consolidated. The risks to economic expectations are balanced in the short term.

Meanwhile, at her press conference, the Fed chairwoman said that economic adjustments such as fiscal policy may affect Fed expectations.…

Global Economic Prospects and their Implications

 

“Secondly, there is great concern and much uncertainty about the implications of the Trump government for the global economic and geopolitical order. This uncertainty has been fueled by his statements during the election campaign and his acting as President …”

A couple of weeks ago, the joint World Bank and International Monetary Fund (IMF) spring meeting was held, at which time the IMF biennial report on the Economic Outlook of the World Seminars on the state of the economy and the global financial systems and their perspectives were also developed.

Of the issues treated, I think it is important to highlight three. First, a scenario of global growth is consolidated for this year and next, higher than that achieved in 2015.

Second, there is great concern and much uncertainty about the implications of the Trump government for the global economic and geopolitical order. This uncertainty has been fueled by his statements during the election campaign and his acting as President. There were also concerns about the rise of populism in Europe and its consequences for the stability of the euro area and the European recovery.

Third, despite the recent cyclical upturn, the medium-term global growth scenario is not auspicious, mainly because of the significant drop in productivity in both advanced and emerging countries. I will now turn to these three points in more detail and analyze the implications of this scenario for Chile.

Short-term global growth prospects

The tenor of discussions on global short-term growth was much more optimistic than in previous years, which is not surprising given that, following continued downward revisions in world growth projections over the past six years, this Year, the WEO revised its growth forecasts for the year 2017 and maintained those of 2018, compared to what was estimated last January.

These projections and others, such as the Consensus Forecast, confirm that the cyclical recovery of the global economy has been taking hold. This recovery is quite widespread, although the euro zone and Japan stand out, which have surprised with more dynamism than expected after years of low growth and very low inflation. It also highlights the United States, a country that has practically returned to full employment, reached a product level around its potential and whose inflation approaches the two percent annual goal.

The recovery of the euro zone has been driven by more favorable financial conditions – a product of the European Central Bank’s policies and the gradual improvement of its financial system -, the significant fall in the unemployment rate, the improvement in the Consumers and entrepreneurs (the latter are at the highest level in 10 years), and the depreciation of their currency.

Japan’s recovery, meanwhile, is supported by expansive fiscal and monetary policies, a robust labor market, and the depreciation of the yen.

In the United States, for its part, the recovery is based on an expansive monetary policy, the increase in wealth resulting from the rise in property prices and stock and bond values ​​in a more dynamic labor market, and In the best expectations of consumers and entrepreneurs.

On the other hand, the economic outlook for the emerging world has also improved. China, which is the largest emerging economy and second largest economy after the United States, by size, has grown more dynamically than projected in the last two quarters as a result of expansive fiscal and credit policies. However, China remains concerned about the experts, and holding their authorities, for the strong growth of credit to local governments and public enterprises.

The rest of the emerging countries, as a group, are benefiting from the cyclical recovery of the advanced countries, the maturation of internal adjustment processes to face the end of the commodity super-cycle, better prices for primary products and conditions International financial institutions that remain favorable.

Concerns about the global economic and geopolitical order

As for the international economic and geopolitical order, the behavior of the Trump government and the rise of populism in Europe are of concern. In particular, there is concern about the risk that the United States will abandon the central role it has played since the Second World War in promoting trade multilateralism and international geopolitical order. They are also concerned about the Trump administration’s protectionist leanings and actions, for its consequences on the rules of global trade and, ultimately, on growth itself.

Other sources of concern and uncertainty include the rise of populism in Europe, which could be voiced in France and in the next parliamentary election in Italy, the Brexit negotiations and political tensions in the Middle East, North Africa and Peninsula of Korea.

Perspectives of global growth in the medium and long term

Regarding medium- and long-term global growth prospects, the concern is that, after this cyclical recovery at rates of growth that in many cases exceed their potential level, …

South Korea Launches Package to Boost Domestic Consumption

 The South Korean government recently announced the launch of a stimulus package valued at 3 trillion won to boost low domestic consumption. The country’s executive will offer tax benefits and financial aid to both low income and small business, according to The Korea Times.

Among other measures, South Korean authorities will encourage flexible working hours by designating one day of each month so families can develop leisure activities. They will also force employers to leave workers two hours early on Fridays. In addition, employees will receive special discounts on the advance reservation of train tickets.

On the other hand, citizens with lower incomes will receive double the amount they currently receive as tax breaks for fuel consumption. The amount of these returns will increase from 100,000 won (82 euros) to 200,000 won (164 euros).

Small businesses and restaurants will also benefit from new government measures, including the launch of a low-interest line of loans totaling 80 billion won (€ 65 million).

However, the decisions of the Executive have received several criticisms, according to the same sources. Thus, the professor of the University of Seoul, Yun Chang-hyun, indicated that these measures have little sense from the economic point of view. “Doing politics is better than not doing it, but this seems to have been done from despair without really understanding what the real problem is. It will not be effective, “he said. “First we have to try to find solutions to boost job creation,” said the expert, who stressed that one of the main obstacles facing the country is the lack of job opportunities for young people.…

Honduras improves business climate according to Doing Business of the World Bank

The Doing Business report, which measures the world’s business climate, noted that Honduras advanced five positions in the 2016 report over last year, according to the World Bank’s annual publication.

Also highlighted in the report is that Honduras is the global leader in the area of ​​protection of minority investors

Honduras was included in the World Bank report that improved most in the business environment, along with Costa Rica, Uganda, Kenya, Benin, Jamaica, Uzbekistan, Senegal, Mauritania and Cyprus.

The Doing Business 2016 was focused on the theme Measuring quality and regulatory efficiency, according to the global report released by the World Bank.

Honduras had the 115th position in the 2015 report, while the one released over the weekend for 2016 places it 110th with a five-point lead. At the global level, the ranking is headed by Singapore in position 1, while in Latin America, Mexico is in 38th place and Costa Rica in region 58.

Also, the report highlights that Honduras made the 2016 buna reform to improve the business climate, one of the bases that allow to climb in the world ranking.

Global leader

The report by the World Bank and its partners in the World Bank Group notes that “Globally, Honduras was the economy that improved the most in the area of ​​protection of minority investors by requiring greater disclosure of related operations; Prohibit the vote of interested parties; And allow minority shareholders to file a direct action for damages and give them the right to inspect company documents. “

The Latin American economies with the lowest ranking at the global level are Venezuela in 186, Haiti in 182 and Bolivia in 157. In total, 189 nations were evaluated worldwide.

The above places Honduras as one of the best countries to invest in Latin America, along with Costa Rica, Mexico, Chile, Peru, Colombia, Panama, Guatemala, Paraguay and the Dominican Republic. In addition to Singapore, the New Zealand (2), Denmark (3), South Korea (4) and Hong Kong (5) lead the ranking.

The indicators used for the ranking are the ease of obtaining construction permits, access to electricity, ways to register a property, how to protect the small investor, taxes that are charged to companies and others.

The government of Honduran President Juan Orlando Hernández has promoted reforms to improve the business environment, which has allowed progress in the Doing Business ranking, as well as the Global Competitiveness report published by the World Economic Forum in Davos.

Simultaneously, the government stabilized public finances and reached an agreement with the International Monetary Fund (IMF) that allowed the improvement of the country risk and with that the improvement of ratings by rating agencies such as Standard & Poor’s and Moody’s , Achieving greater accessibility to the global debt markets.…

Growth in East Asia and the Pacific Remains Resilient to The Difficult World Situation, According to The World Bank

 According to a new World Bank report, growth in developing countries in East Asia and the Pacific has remained resilient and is expected to decline, albeit only moderately, over the 2016-18 period. This perspective is subject to high risks, and countries should continue to give priority to monetary and fiscal policies that reduce vulnerabilities and strengthen credibility, while at the same time strengthening structural reforms.

Growth in developing countries in East Asia is expected to decline from 6.5 per cent in 2015 to 6.3 per cent in 2016 and 6.2 per cent in the period 2017-18. The forecast reflects China’s gradual evolution towards slower and more sustainable growth, which is expected to be 6.7% in 2016 and 6.5% in 2017, compared to 6.9% in 2015.

“This is an important moment for developing countries in East Asia and the Pacific. This region accounted for almost two-fifths of global growth in 2015, more than double the combined contribution of all other developing regions, “said Victoria Kwakwa, incoming vice president for the World Bank for East Asia and the Pacific. “The region has benefited from diligent macroeconomic policies, including efforts to increase incomes in commodity-exporting countries. However, if growth is to continue in the difficult global situation, it will be necessary to continue progress with structural reforms. “

The report entitled Economic Update on East Asia and the Pacific analyzes the region’s growth prospects in a difficult context: slow growth in high-income countries, generalized deceleration in emerging markets, weak world trade, persistently commodity prices Low and increasingly volatile global financial markets.

Excluding China, developing countries in the region grew by 4.7% in 2015, and the pace of growth will rise slightly – to 4.8% in 2016 and to 4.9% in the period 2017-18 – boosted by the growth of the great economies of Southeast Asia. However, the prospects of different countries vary according to their respective trade and financial relationships with high-income economies and China, as well as their dependence on commodity exports.

Among the large developing economies in Southeast Asia, the Philippines and Viet Nam have the strongest growth prospects: both are expected to grow by over 6% by 2016. In Indonesia, growth forecast stands at 5.1% By 2016 and 5.3% by 2017, depending on the success of recent reforms and the implementation of an ambitious public investment program.

A number of small economies, such as the Lao People’s Democratic Republic, Mongolia and Papua New Guinea, will continue to be affected by low commodity prices and reduced external demand. Cambodia’s growth will be slightly below 7% in the 2016-18 period, due to lower prices for agricultural commodities, lower apparel exports and moderate growth in the tourism sector. In the Pacific island countries, growth is likely to remain subdued.

“Developing countries in East Asia and the Pacific face high risks, such as a weaker-than-expected recovery in high-income economies and a slower-than-expected deceleration in China. At the same time, policymakers have less room for maneuver in setting macroeconomic policies, “said Sudhir Shetty, chief economist at the World Bank for East Asia and the Pacific. “Countries must adopt monetary and fiscal policies that reduce their exposure to global and regional risks and continue to implement structural reforms that promote productivity and promote inclusive growth.”

Slower-than-expected global growth could dampen demand and slow growth in developing countries in East Asia and the Pacific, especially in commodity-exporting countries. The report calls for close monitoring of economic vulnerabilities, especially those linked to high levels of debt, price deflation and slowed growth in China, as well as high corporate and household debt in other major economies. In addition, the region must be prepared to deal with natural disasters, which pose a significant risk to the Pacific island countries.…