China’s property crackdown sinks economic growth to 90s levels | Financial Markets

China’s economy is slowing to the lows seen way back in 1990 — a price President Xi Jinping seems willing to pay to reduce its dependence on the property sector.

Beijing’s squeeze on the real estate sector will linger into next year and beyond, a development many hadn’t seen coming that has now prompted banks like Goldman Sachs Group Inc., Nomura Holdings Inc. and Barclays Plc to cut their growth forecasts in 2022 to below 5%.

Bar last year’s pandemic year, that would be the weakest in more than three decades.

It’s a big stepdown from pre-pandemic rates closer to

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Adesina slams Nigeria’s ‘import substitution’ economic model

The president of the African Development Bank, Akinwunmi Adesina, has criticised Nigeria’s failure to diversify its export base to high-value market products, saying the country has focused more on replacing imports and saving the naira rather than deliberately pursuing wealth creation and value-added manufacturing.

Mr Adesina delivered his remark in a lengthy and blistering note at the Manufacturers Association of Nigeria Annual Adeola Odutola Lecture on Tuesday.

He said the country has failed to position itself for economic growth and achievements, the type attained by developing countries like Vietnam and Malaysia.

“While for decades the share of manufacturing in

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Economic Trouble Won’t Be Transitory

Authorities in Washington—President Joe Biden, Federal Reserve Chairman Jerome Powell, and Treasury Secretary Janet Yellen—have told the public not to worry over the recent inflation, which they insist is “transitory.” They link the problem to supply-chain constraints that they suggest will soon lift. Supply problems have certainly contributed to inflation, but early relief seems unlikely. Even Transportation Secretary Pete Buttigieg expects problems until mid-2022 at the earliest. That will put a damper on holiday gift-giving and makes the word “transitory” sound misleading.

The current inflation is worrisome for more fundamental reasons. Widespread supply-chain problems are clearly a global reality and

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Wall Street Journal.Economy Week Ahead: China GDP, U.S. Industry and Housing.The latest snapshot of China's economic growth, U.S. industrial production and the housing market highlight this week's economic data..8 hours ago

Wall Street Journal.Economy Week Ahead: China GDP, U.S. Industry and Housing.The latest snapshot of China’s economic growth, U.S. industrial production
and the housing market highlight this week’s economic data..8 hours ago… Read More

Africa-Turkey economic forum to promote trade, investment: Envoy

The upcoming Africa-Turkey Economic and Business Forum in Istanbul will boost trade and investment between Ethiopia and Turkey, Ankara’s Ambassador to Ethiopia and the African Union (AU) Yaprak Alp said on Tuesday.

Alp made the remarks during the signing of a framework agreement between Turkey and the AU to organize and manage the third Turkey-Africa Economic and Business Forum on Oct. 21-22.

The agreement was signed by Alp and the AU’s Commissioner for Economic Development Trade, Industry and Mining Albert Muchanga.

The forum has been organized since 2016 and this year’s meeting will be held under the theme “Deepening Turkey-Africa

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Europe’s central bank easing COVID-level economic support

The European Central Bank will dial back some of its massive emergency pandemic support for the economy amid signs of increasing business activity and consumer readiness to spend as the 19 countries that use the euro rebound from the coronavirus recession.

Bank head Christine Lagarde was careful to say the shift was only a “recalibration” of existing stimulus — not a signal that pandemic support is being phased out.

The bank’s 25-member governing council decided Thursday that it would conduct its bond purchase stimulus at “a moderately lower pace” than in recent months. Since March the statement has said that

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In much of the world, economic policy is becoming tighter

INFLATION, IT IS often said, is a matter of too much money chasing too few goods. In many places that has been 2021 in a nutshell. Resurgent demand collided with insufficient supply, yielding inflation of 3% in the euro area, more than 4% in America and over 9% in Brazil. Such price pressures, together with early signs that economies would take off as lockdowns ended and more people were jabbed, led policymakers to set the course for scaling back emergency stimulus. In many places fiscal support is being withdrawn and central banks are either

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Biden’s historic food-stamp increase could hurt long-term economic growth, wages

The Biden administration’s massive food-stamp expansion, the largest permanent increase to benefits in the program’s history, could cut economic growth over the next decade, according to a new study published last week. 

Findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania’s Wharton School, show the changes to the program will reduce GDP by 0.2% in the next 10 years. The negative impact becomes more pronounced in the future: By 2041, it will slash growth by 0.3%, and by 2051, the economy will

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China Curbs Steel Output, but Familiar Economic Pressures Test Its Mettle

HONG KONG—A two-month fall in China’s steel output, ordered by economic officials, handed Beijing a global showcase for advancing climate goals and controlling commodity markets. A brewing economic slowdown is testing the government’s will to sustain the cuts.

China’s production of crude steel, half the world’s annual total, fell in July by the widest year-on-year margin since the 2008 global financial crisis. Early indicators suggest it might slip again this month. Culled by state inspections and other official curbs at mills nationwide, the usually prodigious flow that is often the subject of global trade and environmental tensions has fallen by

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