|
|
Home  Money Inflation is growing in Asia
|
|
Inflation is growing in Asia |
|
Saturday, 05 July 2008 |
In recent years, Asia has become a very important region for the world economy. Rise of Asian economy is remarkable, and local manufacturers gain significant positions in world markets. At present, however, inflation accelerates their growth throughout Asia, showed official statistics and forecasts of central banks in different countries.
This in itself raises fears of a slowdown of economic growth in the region, as likely to lead to new increases in interest rates in order to limit the amount of lending and money in circulation.
This makes assessment of the impact of the appreciation of life on forecasts of growth interesting question, especially in fragile states. That is why in this analysis attention is focused on the relatively more backward in their development economies, where a large percentage of poor population, and there are significant social strains of high rates of inflation. And so do the pillars of the Asian continent as Japan, China, Taiwan and Singapore.
However the International Monetary Fund points out that most Asian countries fall into the group of developing countries and poverty is quite widespread in the wider public circles. IMF estimates are that about 75 developing countries, among which are one of the fastest growing Asian economies - India, Indonesia and Pakistan are seriously threatened by the growing prices of fuel and food. The continent remains home to 2 / 3 of the world's poorer populations, and this has led to protests against the appreciation of life and put political and economic system in many countries under pressure.
South Korea
In June, inflation in South Korea was 5.5 percent on an annual basis, which is the largest growth from November 1998 onwards. Since the beginning of the year horizons von has obeztsenil by 11 percent as a result of inflation pressures, registrirayki the weakest streak to six months from March 2001 until now. This leads many to set a more restrictive monetary policy and according to a Bloomberg analysis of the end of the year will become witnesses of slumping of the currency by about 4 percent. Increase in interest rates, however, is expected to affect negatively, as the country already observed expectations for a slowdown in growth - as the head of the central bank this year it will amount to 4.6 percent, which is well below the promised by the newly elected president the country's 6.0 percent.
Thailand
In June, inflation in Thailand has reached ten peak of 8.9 percent after month earlier was measured by the lives of slumping 7.6 percent on an annual basis. This led many to expect increase in interest rates, which poevtinyavaneto the local currency is likely to be terminated. For the first half Thai bat lower its value by 12 percent, which has become the most weak Asian currencies for 2008. The reasons for this may be looking towards passage of the surplus in the current account deficit in the country in recent months, and in protest against the leadership of this Prime Minister and the appreciation of life.
Indonesia
On an annual basis in June inflation in the country jump to its highest value for the past 21 months. It reached 11.03 percent, after the month-earlier level was 10.4 percent. The government made attempts to control inflation, but the increase in the fixed price at which fuel is sold to consumers, fires growth of prices of goods and services.
The measures of the authorities after data on inflation is likely to be fast, even as this week's expected increase in interest rates. The country has already taken measures against the growth of consumer prices and as a consequence for the first six months Indonesian Rupiah appreciated by 1.7 percent against the U.S. dollar. For this help and the interest differential between Indonesia and the United States, which is currently targets 6.5 percentage points.
India
Rapidly growing economy of India is set to serious difficulties to overcome inflation rate of 11.4 percent, huge budget deficit and problems with the fuel. This leads analysts to expect a slowdown in growth to 7 percent this year, after reported over 9 percent in 2007, transmits Business Week. Currently, the currency of the country is 15 - a month bottom and are expected to increase its rate tightening in monetary policy. Since the beginning of the year the Indian Rupee has dropped by 9 percent, leading after themselves and decline of capital from the fund market, and this poses new challenges to economic growth.
Philippines
According to central bank forecasts inflation in the country will remain at around 10 percent, after preliminary data on the growth of consumer prices in June was that value. The high inflation has made in Philippine Peso most poorly submitting to Asian currency in the last quarter. Since the beginning of the year peso value decreased by 8.3 percent after record prices of rice led to a decline in confidence in management to the lowest level of his here in 2005.
Malaysia
In Malaysia also observed a significant increase in inflation, which will be increased by a whole percentage point in June from the previous month to reach 7 percent. The main reason for the jump in prices is the decision of the authorities to increase the final price of petrol as a result of high oil prices on international markets. Only in the second quarter of 2008 Malaysian ringit has fallen by 2.1 percent against the U.S. dollar, which is the first quarterly decline from September 2006 onwards. |
|
|
|
