The recession deepens in China’s assets with the fall in prices; Japan’s economy hit by supply chain crisis – business live

Good morning, and welcome to our rolling coverage of the world economy, financial markets, eurozone and trade.

The COVID-19 pandemic and supply chain disruption continues to disrupt the global economic recovery Japan And of thailand Both economies have been shrinking in the last quarter.

Japan’s economy shrank by 0.8% in the third quarter of this year, new data show, with global supply disruptions hitting export and trade spending plans more than expected.

A surge in Covid-19 cases this summer, which led to emergency soft lockdown measures in Tokyo and other regions, also hurt recovery. Private consumption fell 1.1% during the quarter.

Capital expenditure by companies declined by 3.8%, with some manufacturers such as carmakers struggling to obtain raw materials and parts.

The contraction suggests the world’s third-largest economy is hitting harder than expected by production constraints that are gripping the global economy.

Economists expected Japan’s GDP to decline 0.2% during the quarter.

As Takeshi Minami, chief economist Norinchukin Research Institute, keep this

“The contraction was much larger than expected due to supply-chain constraints, which made car production and capital expenditure difficult.”

Economists predict that Japan’s economy will return to growth this quarter. But the sharp drop in Q3 GDP could prompt Prime Minister Fumio Kishida to unveil a significant stimulus package soon.

Alvin Tanu NS RBC Capital Markets They say:

Japan’s third-quarter GDP was weaker than expected at -3% q/q annualized, which should provide additional impetus to the proposed fiscal stimulus package. A package worth over Rs 40 trillion is reportedly being considered.

of thailand The economy has also been hit by COVID-19 restrictions this summer, which has hit its tourism sector.

Thailand’s GDP shrank 1.1% during the third quarter of the year – which is actually better than the 2.5% contraction that economists were prepared for. This left the economy 0.3% smaller than it was a year ago.

Exports rose 15.7% in the third quarter from a year ago, but private consumption declined by 3.2%, hit by pandemic restrictions.

Again, recovery is expected in Q4, as Covid-19 cases fall, restrictions are being lifted and vaccine rollouts accelerate.

Danucha Pichainan, head of Thailand’s National Economic and Social Development Council, told a news conference that economic indicators point to an improvement in conditions – and that domestic consumption, public spending and tourism will drive growth in 2022.

“If there are no more outbreaks, the fourth quarter will definitely be better than the third.

still coming today

NS bank of england Governor, Andrew Bailey, with the chief economist testifying to lawmakers on the Treasury committee this afternoon hoo pill,and external MPC members Michael Saunders And Dr. Katherine Mannu,

They will discuss the bank’s decision to put interest rates on hold this month and forecast for inflation to reach 5% next year, and will also likely cover the UK labor market, price and wage growth, and the outlook for the economy. Is. ,

We will also hear from the head of the European Central Bank Christine Lagarde, When she will appear before the MEP in the Committee on Economic and Monetary Affairs this morning

European markets expected to open slightly lower, with post-inflation worries weighing on stocks US consumer confidence hit a 10-year low on Friday.

work schedule

• 10 a.m. GMT: Eurozone trade balance for September
• 10am GMT: ECB President Christine Lagarde testifies to the European Parliament’s Committee on Economic and Monetary Affairs.
• 2.30 a.m. GMT: Bank of England policymakers testify to Treasury committee