Key Economic Updates – Remittance Receiving Countries

India's 1Q FY 09 GDP growth at 7.9%

According to the data released by Centre for Monitoring Indian Economy (CMIE) on 14 September 2008, the real gross domestic product (GDP) of India grew 7.9% in the 1Q of 2008-09 and is expected to accelerate in the second half of the fiscal. The agency added that the agriculture, industry and services sectors grew 3%, 6.9% and 10%, respectively. These were lower than the corresponding levels of growth registered in the year-ago quarter, due to decline in the respective industries.

India records 7.1% industrial growth in July `08

On 13 September 2008, the Central Statistical Organisation (CSO) reported 7.1% industrial growth in July 2008, which was lower than the 8.3% growth recorded a year ago. The manufacturing sector, which contributes about 80% to the Index of Industrial Production (IIP) grew 7.5% in July 2008, compared to 8.8% a year ago.

Mexico's consumer confidence edges up in August

On 4 September 2008, the National Statistics Agency reported that Mexico's consumer confidence index rose to 89.6 in August 2008 from a record low of 88.4 in July this year. The Mexican inflation stood at a five-year high of 5.37% in early August, due to high global food prices.

Brazil's central bank raises rates fourth time in a row

On 10 September 2008, the central bank of Brazil raised interest rates to their highest level in almost two years, to control inflationary pressure. The bank's monetary policy committee known as Copom, increased its benchmark lending rate to 13.75% from 13%. Chief Economist at the National Commerce Confederation, Carlos Thadeu de Freitas said “I think they're signaling that in the next meeting they're going to raise rates by 50 basis points.”

Philippine's 7-month trade gap widens to $5.3 billion

On 26 September 2008, the National Statistics Office reported that the trade deficit for the January-July period this year soared more than 200% to $5.34 billion from $1.63 billion in the same period last year, due to higher oil, rice and steel prices. Imports rose 15.8% during Jan-July 2008 to reach $35.38 billion.

China's inflation drops, trade surplus hits record

On 10 September 2008, the National Bureau of Statistics announced that China's consumer price index (CPI), a measure of inflation, dropped to a 14-month low of 4.9% in August 2008, compared to 6.3% in July this year. Chief Economist of the bureau, Yao Jingyuan said “The continuous decline of the CPI is a positive sign as it shows that the government's measures to ease inflationary pressures were effective.” Also, the General Administration of Customs reported that China's trade surplus hit a record high of $28.69 billion in August 2008, compared to $24.97 billion in August last year.