In 2021, Singapore bounced back primarily because of export demand and a fast rollout of Covid-19 vaccines. By the end of the year, 87 percent of its population were fully vaccinated. But the additional challenges of the pandemic also became more apparent later in the year, with Singapore registering the largest Covid-19 outbreak in October 2021, which lead to renewed domestic restrictions and a slow recovery of international travel affecting its core related industries.

Last year’s growth rate was the fastest in 10 years and the economy expanded 14.5 percent, following the global financial crisis. The manufacturing sector also expanded by 12.8 percent after a huge surge for electronic components. The services and construction sectors rebounded by 5.2 percent and 18.7 percent respectively, after being severely hampered by pandemic restrictions.

For the fourth quarter of 2021, gross domestic product (GDP) expanded 5.9 percent year-on-year slower than the 7.1 percent growth in the July-September period. The electronics and precision engineering sectors were still strong in the fourth quarter and it was driven by sustained global demand for semiconductors and semiconductor equipment respectively. For 2022, the government expects a GDP growth rate in the range of 3 percent to 5 percent.

The post Singapore GDP hits 7.2% in 2021 amid Omicron fears appeared first on International Finance.

This represents that the market is bouncing back from the adverse effects of the Covid-19 pandemic. As face-to-face meetings were banned due to the nature of the pandemic, many sales channels incurred heavy losses, especially agents.

Khor Hock Seng, LIA president told the media, “The strong showing of business results seen in the life insurance industry in the first half of this year reflects a level of stabilisation of Singapore’s economy from the immediate impact of Covid-19 in the first half of 2020. The growth in uptake of life insurance also seems to show that more people are placing greater importance on providing for their long-term financial and healthcare needs in the midst of an evolving pandemic environment.”

The main growth driver was single product premium which recorded a 106 percent year-on-year increase in weighted premiums, amounting to SG$1.28 billion. Additionally, single premium par and non-par products accounted for 84 percent of all single premium purchases and single premium-linked products made up for the remaining 16 percent.

Annual premium products also increased by 35 percent and added another SG$1.4 billion in weighted annual premiums. The insurance company also noted that the number of policies purchased online also increased as the business started working remotely due to the pandemic. During the first six months of 2021, 203,351 policies were bought online, compared to 2,952 policies from the first half of 2020.

The total new business premiums for individual health insurance amounted to SG$176.8 million and the uptake of retirement products also saw an increase of 34 percent with 22,137 policies bought in the first half.

The post LIA Singapore reports a 61% increase in sales in H1 2021 appeared first on International Finance.

The statement released by IMF reads, “Non-hydrocarbon GDP growth of 1.5 percent is projected for 2021, as vaccine rollout gradually restores domestic economic activity along with the recovery of external demand. Thereafter, it increases gradually over the medium term as the impact of fiscal adjustment subsides, reaching 4 percent in 2026. Fiscal, monetary, and financial support measures introduced by the government have been deployed to ease the burden on households, firms, and banks. The IMF mission highly values the candid discussions with the authorities and expresses its gratitude for their excellent cooperation.”

Even though there has been a lot of uncertainty surrounding the global outlook due to the new Covid-19 variants, and their impact on the country, the IMF mission also commended the measures taken by the country to contain the pandemic. The report also lauded Oman’s effort to accelerate the vaccination process so that 70 percent of the population is immunised. The government also planned on providing economic assistance to the most affected during the pandemic by launching the ‘Economic Stimulus Plan’.

The post Oman’s GDP is projected to grow by 2.5%: IMF appeared first on International Finance.

AMRO’s Lead Economist Chaipat Poonpatpibul told the media, “The swift, sizeable, and more targeted policy measures have effectively cushioned the impact of the pandemic and supported the recovery. “Further support would be needed if the recovery falters due to a resurgence in local and overseas infections.”

In another survey conducted by the Monetary Authority of Singapore (MAS), it was predicted that Singapore’s economy is expected to grow by 15 percent in Q2 and by four percent in 2022. The 24 economists who responded to the survey by the Monetary Authority of Singapore (MAS) said that Singapore could perform beyond expectations if the pandemic is properly contained

While it definitely looks like Singapore is on track to become economically viable once again, experts mention that the outlook is uncertain because of the uneven recovery seen across sectors. While the manufacturing sector is expected to grow strongly due to the global recovery and robust electronics demand, the tourism sector will continue to see slower growth due to the ongoing pandemic containment measures and the slow pace of vaccination in most countries.

The post Singapore economy to grow by 6.1% in 2021: AMRO appeared first on International Finance.

During 2017, entry-level candidates from the science and engineering sectors had experienced the highest salary increases, as compared to 2016, according to the data.

HR can also expect to pay the highest for candidates in the computing and IT, engineering, and building and construction industries.

However, although traditional sectors like accounting and finance saw a drastic decrease in their starting salaries, they still continue to see the highest demand from employers, with 36% jump in job postings on Jobstreet.com.

According to the website, the top 10 starting salaries were : IT ($2,775), building and construction ($2,738), engineering ($2,598), science ($2,587) and finally, sales and marketing ( $2,535).

Starting salaries for entry-level HR professionals on the other hand, were a little lower. On an average, candidates could expect about $2,300. This figure marks it slightly higher than the previous year’s $2,333. This is based on an annual salary guide by recruiting specialists Kelly services.

The salaries overall varied depending on the nature of the job. HR assistant/ officers were paid amounts ranging from $1,900 to $3,600. L&D administrators were paid anything from $2,200 to $2,800. Training coordinators finally, were paid salaries ranging from $2,500 to $3,500.

The post Singapore’s fresh hires demanding higher salaries appeared first on International Finance.

France was the busiest country, despite demand being down 1% YOY. Other top markets showed moderate-to-good growth, with the strongest increase being for the UK and Germany, with flights up 7% YOY. Greece came in as the seventh busiest country in July, with growth of 11% YOY.

The growth due to the FIFA World Cup soccer tournament in Russia was reflected in a 26% increase in YOY flights between Russia and Europe. Flights from France to Russia were up 7%; from Spain to Russia up by 17%; and from UK to Russia up by more than 130%.

The decline in France this month was due to larger jets recording less flights. This was also experienced in Italy and Spain. By contrast, large jet flights out of Switzerland and Greece were up almost 10%, and from Russia, up by 36%. Overall, the small and midsize activity was up 9% in Italy.

Business aviation flights within Europe itself were up by 4%. European flights to North America were up by 5% and Middle East connections were down 13% in July. Charter/AOC activity represented almost 60% of all activity in July, growing 3.9% YOY. Business jets were operated within most of this activity, with these flights being up by 5%.

The biggest markets for charter/AOC demand during the month were Germany, the UK, Spain and Greece, all increasing. The largest growth came from Russia, with charters this month up more than 30%. Private mission activity was up in the top market of France, Germany and the UK.

London airports showed double the activity of any other city, although Paris, France, had stronger growth with a 12% surge for small and midsize jets. Flights from Nice were down, but out of Farnborough, Biggin Hill, Vnukovo and Mykonos, activity increased more than 15% YOY.

Richard Koe, managing director of WingX Advance, stated: “The Football World Cup helped in boosting business aviation activity to its highest ever monthly level in July, with business jets 6% busier than back in 2008.”

“There was balanced growth in large, midsize and small jet activity, with continued shift in demand toward charter, although private flights also up.” He continued.

“As with last year, the impetus for growth this summer is the high-end leisure market, with the distinction that Mykonos rather than Ibiza is attracting the most growth.” He concluded.

The post July marked busiest ever month for business aviation activity in Europe appeared first on International Finance.

Tom Bené, Sysco’s president and chief executive officer, said: “As the global leader in foodservice distribution, it is our responsibility to operate in a manner that meets the needs of our customers today, while producing positive, lasting change.”

“Our 2025 goals are a solid foundation that further demonstrate our global sustainability commitment. We are leading our industry with our CSR initiatives and by including specific long-term goals that align with our strategic business priorities, we are living our vision of becoming our customers’ most valued and trusted business partner.” He added.

Themed Delivering A Better Tomorrow , Sysco’s 2025 Responsibility Goals are aligned to focus on three key areas: People, Products and Planet.

In the People area, Sysco will take initiative to giving back, doing good and change lives in the communities. The goals include: Donating a total of 200 mn meals and contributing a total of $50 mn to local communities. Increasing ethnic and gender diversity to 62% and spend to 25% with women and minority owned suppliers. Expanded products will also include health and well being products and programs.

In the Products area, Sysco will supply products responsibly by improving animal welfare in the foodservice industry– and minimizing negative environmental, social or ethical impacts when sourcing products. The goals the company has set include: Publishing Sysco’s Animal Welfare Policy and ensuring compliance by all Sysco Brand Suppliers. Identifying and developing responsible sourcing commitments for five key commodities. Ensuring all high-risk suppliers abide by Sysco’s Global Supplier Code of Conduct.

For the Planets area, Sysco will initiate measure to protect the planet by advancing sustainable agriculture practices, reducing the company’s carbon footprint and diverting waste from landfills, in order to protect and preserve the environment for future generations. The company has set the following goals: Doubling the availability of Sysco Brand organic produce. Extending our Sustainable Agriculture program into five fresh crops. Reducing the carbon footprint of our fleet and operations by sourcing 20 % of electricity from renewable sources and powering 20 percent of fleet vehicles with alternative fuels. Diverting 90 % of operations and food waste from landfills.

Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments etc. It has more than 67,000 associates, and operates approximately 330 distribution facilities worldwide, serving more than 600,000 customer locations. For fiscal 2018 that ended on June 30 2018, the company generated sales of more than $58 bn.

The post Sysco announces 2025 Corporate Social Responsibility goals appeared first on International Finance.

Sterling was down heavily against all major currencies, as investors sought to insure themselves against the increasing possibility that talks between London and Brussels will break down over the coming months.

Analysts said sterling’s slide – which makes imported goods and foreign travel more expensive but UK exports cheaper – would push up inflation and lead to a renewed crunch on living standards at a time when support for the government and its handling of Brexit has fallen sharply.

The impact from the weaker pound has been felt by Holidaymakers. The walk-up rate at Forexchange bureau de change in Cardiff airport had dropped to just $1.04 (€0.90).

Speculation against the pound has intensified in the past week, as markets have learned to deal with warnings from Mark Carney, the governor of the Bank of England, and Liam Fox, the international trade secretary – about the possibility of Britain chaotically exiting the EU next March. While the government has insisted that it still expects negotiations with the EU over the next few months to prove successful, currency traders have been preparing themselves for the possibility of a deal not to emerge—and hedging against the possibility of harsh post-Brexit conditions.

With less than eight months to go before the UK’s planned departure date, financial markets have now started to take seriously the chances of chaos at the borders and damage to supply chains.

“What we are seeing is broad sterling weakness, a very aggressive weakening trend,” said Peter Kinsella, a strategist at Commonwealth Bank of Australia.

The pound lost more than half a cent against the dollar to trade below the $1.29 level for the first time since late August 2017. Sterling also dropped half a cent against the euro to its lowest level for nine months and also posted losses against the Japanese yen and the Swiss franc.

Sterling was trading above $1.43 against the US currency in April, but has been in steady decline due to Theresa May’s inability to find a Brexit plan acceptable to both the EU and her own party.

Analysts said the decision last week by the Bank of England to push official interest rates above 0.5% for the first time in almost a decade has failed to support the pound.

Investors believe the Bank’s monetary policy committee (MPC) will be in no hurry to move again following Carney’s hint that it would take another three years for official borrowing costs to double from 0.75% to 1.5%. Attention in the City will now focus on Friday’s growth figures for the second quarter of 2018, expected to show the UK economy expanded by 0.4%.

One former MPC member, Andrew Sentance, wrote on Twitter that the next stop for the pound could be $1.25 and that ultimately, it might fall below $1.10.

But analysts at the US investment bank, Morgan Stanley, said they expected the pound’s weakness to be temporary—stating that despite any prospects of further ups and down in negotiations in the coming months, Britain was likely to secure a deal with the EU.

“We see this as a short-term trade as the conclusion of any trade negotiations by early 2019 should cause the pound to strengthen” the analysts said. They predicted that by the end of next year, the pound would be trading at $1.50, around the level at which it stood before the UK voted to leave the EU in 2016.

The post Sterling falls against dollar and euro amid fears of no-deal Brexit appeared first on International Finance.

The RBI lends short-term money to commercial banks at the Repo rate, while reverse repo rate is one at which the central bank borrows money from commercial ones. The repo rate was hiked by 25 basis points in June and further increased to 6.50% by the banking regulator – while the reverse repo rate was also hiked in a similar capacity to 6.25% on Wednesday.

Niranjan Hiranandani, national president, National Real Estate Development Council (NAREDCO)said: “From a real estate perspective, this hike will negatively impact buyer sentiment with the logical result on quantum of sales,” adding that the rate hike had come on the heels of a meeting with Union Housing and Urban Affairs Minister Hardeep Puri, in order to discuss measures to put the real estate sector “back on track”. Developers had discussed lowering GST and setting up a ‘Stressed Assets Fund’ to finish stalled projects by providing last mile funding.  He said that the government should take decisions to enhance buyer sentiment.

Jaxay Shah, the National president of Confederation of Real Estate Developers Associations of India’(CREDA), who was also part of the meeting, said: “Two consecutive hikes in the repo rate partially undo the policies for promoting affordable housing. We urge the government to expedite lowering effective GST on all housing to 8 per cent so as to preserve the growth impulses in real estate.”

The criticism was also echoed by Dhaval Ajmera, director of Ajmera Group, who said: “On one hand where the government is gunning big for ‘Housing for All’ and affordable housing, such moves are totally out of sync with the vision at the Centre.”

On the other hand, Rohit Poddar, managing director of Poddar Housing and Development Ltd on the other hand was less intimidated. “, “I personally believe that the home buyers should not worry as it will be difficult for many banks to increase the interest rate.” he said.

Similarly, Anuj Puri, chairman of Anarock Property Consultants, stated that the march-June quarter had recorded a 24 per cent increase in housing sales and 50 per cent increase in new launches. Puri said: “These numbers clearly indicate that the markets are now recovering from the shocks of structural changes and policy reforms. Serious end-user demand is back on the market and marginal hikes in home loan rates are unlikely to deter buyers.”

Conclusively, Ashwin Sheth, chairman and managing director, Ashwin Sheth Group said: “While this decision was taken to contain inflation, a rate cut at this stage would have offered some respite. We hope the RBI addresses this concern in the next announcement scheduled for October.’’

The post RBI rate hike causes worry in Indian real estate sector appeared first on International Finance.

In its latest semiannual report, “Between a Rock and a Hard Place: The Monetary Policy Dilemma in Latin America and the Caribbean,”  the World Bank’s Chief Economist Office for Latin America and the Caribbean explores the potential of monetary policy to support growth without risking hard-won gains in the battle against inflation.

For Latin America and the Caribbean, market analysts forecast GDP growth of 1.2 percent for 2017 and 2.3 percent for 2018. The recovery will be led by a rebound in Argentina and Brazil. Argentina is expected to grow by 2.8 percent in 2017 and 3.0 percent in 2018. Brazil is expected to grow 0.7 percent in 2017 and 2.3 in 2018, after contracting for two consecutive years. Mexico will likely continue to grow above 2 percent in 2017 and 2018. Growth in Central America and the Caribbean is expected to remain at just below 4 percent in both 2017 and 2018.

“External drivers of growth, such as high commodity prices, aren’t playing a major role and the region will need to rely on homegrown sources for growth,” said Carlos Vegh, World Bank Chief Economist for Latin America and the Caribbean. “Reforms in labor markets and education, higher infrastructure spending and addressing the fiscal situation are key.”

The report finds that 28 out of 32 countries in the region will show a negative overall fiscal balance in 2017. Average debt ratios are expected to stand at 58.7 percent of GDP, with six countries having ratios above 80 percent. Finally, the recent string of natural disasters in the region will only add to existing fiscal pressures in light of the staggering losses.

“While countries in the region still need to make fiscal adjustments to adapt to the new post-commodity boom reality, many countries are right to do it gradually and thus avoid a new recession,” said Vegh. “This naturally tends to put more of the burden on monetary policy to help reactivate the economy.”

The report identifies a critical monetary policy dilemma faced by countries in Latin America and the Caribbean. Industrialized nations can reduce interest rates to stimulate the economy without worrying about currency depreciation, a rise in inflation or macroeconomic instability. But this countercyclical monetary policy is not as easy an option in the region – something reflected in the fact that several countries in South America are still procyclical. While raising interest rates in bad times helps prevent currency depreciation and keep inflation in check, it ultimately also weakens the economy.

How can emerging markets such as those in Latin America solve this fundamental monetary policy dilemma? The answer, according to the report, is central bank independence,

low levels of dollarization and credibility in the markets. This takes time, but countries such as Chile are already able to adopt countercyclical monetary policy during economic downturns without the fear of potentially making things worse for those most vulnerable.

The report also notes that other financial instruments, such as lowering legal reserve requirements to stimulate the economy in bad times, have proven helpful in countries that are still procyclical. These measures can help them respond countercyclically to a slowdown.

The post Growth vs. Inflation – A difficult balance for Latin America and the Caribbean appeared first on International Finance.