International Economics: IB Economics

The extent of the fall out from the conflict in the Ukraine is going to affect many aspects of the global economy, and in this instance, the World Bank highlights how it's likely to adversely affect growth and increase poverty in Asia. 

On the day that HSBC announced a pivot to the East, it seems appropriate to be 'scooping' something that confirms the changing centre of economic gravity. 

Despite ongoing regional tensions - India and China remain closely linked economically, with China regaining its position as India's most important trade partner.  

The Asian Development Bank (ADB) is reporting that for the first time in 60 years, "developing Asia" - a bloc of 45 countries is going to experience a recession. On the plus side, it's forecast to bounce back the next year. However, it's clear that there are adverse developmental consequences as a result.

Raguram Rajan, who's CV includes spells as former chief economist at the IMF and Governor of the Indian Central Bank, has argued that the West has been slow to repsond to coronavirus, in comparison with places like Singapore and South Korea.

And he may have a point, and he does have a platform: but earth-shattering these observations aren't. 

With the release of "Crazy Rich Asians", the BBC turns its gaze on income inequality in the region: there's a small number of super-rich and yet two-thirds of the world's working poor.

Karishma Vaswani looks at the implications of a US-China trade war more globally, with a particular focus on Asia. It highlights the tit-for-tat nature of protectionism, and the inter-connected nature of Chinese supply chains with the rest of the region.

The geopolitics of the Ukraine conflict laid bare: how has Asia responded to the conflict? It is notable that China and India haven't condemned the Russian invasion, but As the strapline says, Asian nations only account for 8% of Russia's trade.

The IMF is forecasting Asia's worst recession in living memory with the region expecting to contract by 2.2% this year, upgraded from the earlier 1.6%. 

However, on the plus side there is expected to be a strong recovery of 7% the following year, with China leading the way. 

More evidence of why international financial institutions earn the big bucks - the IMF forecast that Asian economies aren't going to grow this year. 

Wow! What insight.

The impact of coronavirus is going to have a longer-term effect on a lot of industries, in this case the textile sector. Asian textile manufacturers and workers are under an awful lot of pressure with the grinding poverty of workers meaning that some of the workers are still going to work rather than resisting the disease by staying at home.

And typically, there are suggestions that large Western firms are endeavouring to using their monopsony power to delay payments, re-negotiate terms and singularly fail to support the most vulnerable in the supply chain.

A day for good news; Karishma Vaswani looks at the negative multiplier effect arising from a decrease in US-China trade for other Asian economies.