COVID 19 SLOWDOWN

Chinese spending jumps over long holiday weekend, tops pre-COVID level

During China's Tomb Sweeping holiday, domestic travelers spent $7.5 billion, indicating rising consumer confidence amidst economic challenges. Per capita spending exceeded pre-pandemic levels, suggesting a potential turning point for consumption recovery. Analysts see a growing willingness to spend, despite ongoing concerns like property market downturn and unemployment.

Gucci’s China shock reverberates across the luxury landscape

Fears of a slowdown in luxury spending among Chinese consumers have been growing for some time, and recent events have underscored this concern. Kering SA, the parent co of Gucci, experienced a significant decline in its market value following a warning about slumping sales of Gucci products in China.

China retains 5 per cent growth target for 2024 as economy struggles to shake off slowdown

China expects to create over 12 million jobs in urban areas and keep the surveyed urban unemployment rate at around 5.5 per cent this year, Chinese Premier Li Qiang said in his work report presented to the opening session of the country's rubber-stamp parliament, the National People's Congress (NPC).

Yellen says global economy remains resilient, lauds US as growth driver

"Going forward, we remain cognizant of the risks facing the global outlook and continue to carefully monitor the economic challenges in certain countries, but the global economy remains resilient," she said. Yellen said U.S. economic strength had underpinned global growth, fueled by Biden administration policies supporting businesses hit hard by the COVID-19 pandemic and investments in domestic manufacturing, clean energy and infrastructure.

Fat tech pay cheques shed up to 40% as slowdown bites

Salary offers for IT professionals have dropped 30-40% due to global macroeconomic headwinds and IT sector slowdown. Big tech companies rationalized their workforce, leading to lower pay packets. Early-stage startups are hiring CXOs and senior tech talent at realistic salaries, including variables in the compensation. Michael Page India is helping startups, including an edtech firm, with tech hiring.

China 2023 economic growth tipped to be weakest in decades

China's economy is anticipated to reveal its weakest annual growth in over three decades in 2023, likely expanding by 5.2%, according to experts. The country faced challenges from a property crisis, subdued consumption, and global uncertainties. Despite an improvement from the 3% growth in 2022, the real estate sector's financial issues, record youth unemployment, and a global slowdown hinder the growth engine. The uneven recovery sees services benefitting more than industry, with state-subsidized electric vehicles being a bright spot. Challenges are expected to persist, with 2024 growth predicted to slow to 4.5%.

Allcargo Logistics plans to cut costs by $30 million in FY24 amid global slowdown

Allcargo Logistics is planning to cut costs by $30 million by the end of 2023-24 due to the ongoing slowdown in the global logistics sector. The company also aims to raise up to Rs 300 crore in equity funds for Gati, its express logistics business. Company's chairman Shetty said the cost cutting would include a rationalisation of the workforce and a freeze on hiring.

Cutting pollution to Covid pandemic level may prevent Himalayan glaciers from disappearing: Study

Reducing air pollution to levels seen during the COVID-19 lockdown could safeguard Himalayan glaciers from vanishing by the century's end, according to an international study by teams from India, Germany, and the UK. Cleaner air in 2020 led to less soot on glaciers, decreasing daily snowmelt by 0.5 to 1.5 mm.

ET Awards: Titan's CK Venkataraman: The man who found the rhythm of growth

Soon after Venkataraman succeeded Bhaskar Bhat as Titan boss, Covid-19 struck. All businesses had to be rewired for employees, distributors, franchises and retail partners. Venkataraman's corner-office role came with a formidable set of challenges. "The year 2019-20 was a challenging one," Titan said in its annual report for that year. "Slowdown in the growth of Indian economy, significant rise in gold prices and the onset of the Covid-19 pandemic and consequent lockdown in the month of March 2020 impacted the overall growth of the company."

PSUs holding it up from the other end

They have been aggressively feeding a revival in retail credit as consumption surged with the lifting of Covid-19 restrictions. Another section of PSEs has gained from swollen government orders on account of increased infrastructure spending and defence procurement.

China's economy is forecast to slow sharply in 2024, the World Bank says, calling recovery 'fragile'

The economy has yoyoed in the past few years, with growth ranging from 2.2% in 2020 to 8.4% in 2021 and 3% last year. Stringent limits on travel and other activities during the pandemic hit manufacturing and transport. Job losses due to those disruptions and to a crackdown on the technology sector, combined with a downturn in the property industry, have led many Chinese to tighten their purse strings.

OECD trims global growth forecast, warns of conflict risk

The Organization for Economic Co-operation and Development (OECD) delivered a nuanced outlook for the world economy on Wednesday, suggesting a probable soft landing in the coming year. However, this optimistic projection comes with a caveat, as the OECD expressed concerns about the Israel-Hamas conflict, which could introduce uncertainties into the global economic landscape.

Festive high for online lending; slowdown for IT majors

The ongoing festive season is proving to be a shot in the arm for the digital lending industry. This and more in today's ETtech Morning Dispatch.

IMF says global economy 'limping along,' cuts growth forecast for China, euro area

The International Monetary Fund (IMF) has lowered its growth forecasts for China and the euro area, citing low and uneven global growth. Despite the strength of the US economy, the IMF warned that global growth trends were diverging and prospects for medium-term growth were mediocre. The IMF also expressed concerns about risks related to the real estate crisis in China, volatile commodity prices, geopolitical fragmentation, and a resurgence in inflation.

Slowdown & Covid hit labour market but pay gap narrowing: Azim Premji University report

According to the ‘State of Working India 2023’ report, gender-based earnings disparities have narrowed in India since 2017 with salaried women workers now earning 76% of what their male counterparts earn, up from 70% in 2004.

Growth slowdown, Covid has impacted labour market since 2018: Azim Premji University Report

The Azim Premji University's report, State of Working India 2023, highlights how the growth slowdown and the Covid-19 pandemic have impacted the labor market. The workforce has shifted towards self-employment, with women being more affected than men. However, the report also notes that gender-based earnings disparities in India have reduced since 2017, with salaried women now earning 76% of their male counterparts.

Chinese economy staring at crisis? Weaker economic activity data and deflation, China's woes mount

China's fresh COVID wave raises concern of trading volume slowdown

A fresh wave of COVID is spreading through China as people return from public holiday travel, reaching trading floors and raising concern of an impact to trading volume - albeit likely not as pronounced as previous pandemic-induced disruption. More than half a dozen traders and banking sources told Reuters this week that they or colleagues had contracted the coronavirus recently, or had heard of peers testing positive.

Accelerated implementation of reforms to accelerate India's growth: World Bank

The report titled 'Falling Long-Term Growth Prospects: Trends, Expectations, and Policies' said the global economy's 'speed limit' -- the maximum rate of long-term growth without causing inflation -- is set to decline to its lowest point in three decades by 2030.

Logitech quarterly sales fall 22% as slowdown fears bite

The company saw strong demand for its home office products and computer gaming devices during COVID-19 lockdowns, but the momentum has been fading as countries lift the curbs and as high inflation drives up costs and refrains consumers from spending.

Govt eases norms for certain sectors under Export Promotion Capital Goods scheme

"This relaxation has been provided in light of the economic slowdown caused by the COVID-19 pandemic. This relief will help the hotel, healthcare and educational sectors to cope with the negative impact of the pandemic on their export activities," the statement said.

Economic slowdown will force workers into worse jobs: UN

The ILO said deficits in decent work had been worsened by multiple, overlapping crises, including Russia's war in Ukraine, emerging geopolitical tensions, an uneven recovery from the Covid-19 pandemic and continuing supply chain bottlenecks.

Budget 2023: Public capital investment would need to do the heavy lifting to support growth

Private sector investment in India continues to be substantially lower than the peak of 31% (fixed capital formation as per cent of GDP) in 2011.