Key Economic Updates – Remittance Receiving Countries

Industrial output in China grows 10.7%YoY in June

According to data released by the Chinese National Bureau of Statistics (NBS) on 16 July 2009, industrial output in China grew 10.7% YoY in June, the first double-digit growth since September 2008, compared to a growth of 8.9% recorded in the previous month. The industrial output growth climbed to 7.0% for the first half of 2009, down 9.3 percentage points from the growth rate recorded in the same period last year. The growth stood at 9.1% in the second quarter of 2009, against 5.1% posted in the first quarter of 2009. NBS Spokesman, Li Xiaochao said “The industrial production is accelerating, and the profit drop is easing.”

Chinese economy expands 7.9% YoY in 2Q FY2009

According to data released by the Chinese National Bureau of Statistics (NBS) on 16 July 2009, China's gross domestic product in the three months ended June 30 (2Q FY2009) increased 7.9% YoY, up from a 6.1% rise recorded in the first quarter of 2009, with investment, industrial production and retail sales all contributing to higher output. The expansion in the economy was boosted by massive fiscal and monetary stimulus measures. Analysts anticipated the economy to expand by 7.7% in 2Q FY2009.

Industrial output in India rises in May

According to data released by the Central Statistical Organisation on 10 July 2009, industrial output in India rose faster than anticipated by 2.7% YoY in May, the highest since September 2008, compared to downwardly revised growth of 1.2% recorded in the previous month. Analysts forecasted the industrial output to rise 1.4% YoY in May. Manufacturing production increased 2.5% YoY in May. Deputy Chairman, Planning Commission of India, Montek Singh Ahluwalia said “We do believe that the worst is over, but there is a difference between the worst being over and getting back to robust growth.”

Mexico unemployment eases to 5.17% YoY in June

According to data released by the national statistics agency on 22 July 2009, the jobless rate in Mexico slowed to 5.17% YoY in June, compared to 5.31% YoY in May. However, the unemployment rate was still close to a 13-year high, as the country struggled with a severe recession that is affecting its export sector.

Mexico 2Q GDP slumps 10.4% YoY

On 30 July 2009, the finance ministry of Mexico reported that the country's GDP contracted 10.4% YoY in the second quarter, compared to a contraction of 8.2% YoY in the first quarter. Mexico's GDP slumped in the second quarter due to weakness in external demand, the Easter holidays in April and government measures taken to contain an outbreak of influenza. Mexico's economy has been impacted by sharp drop in demand for its exports, particularly in the US, and a decline in domestic consumption on higher unemployment and tighter credit.

“The significant drop in inflation, which we had anticipated, is mainly driven by base effects from the large year-on-year drop in oil and oil-affected products. As prices normalise, we should see this impact dissipate.”

Amando Tetangco
Governor
BSP

Philippine inflation drops to 22-year lowin July

On 5 August 2009, the National Statistics Office (NSO) reported that the annual inflation rate in the Philippines fell to 0.2% in July, a 22-year low, compared to a reading of 12.3% recorded in July 2008. Central bank Governor Amando Tetangco said, “The significant drop in inflation, which we had anticipated, is mainly driven by base effects from the large year-on-year drop in oil and oil-affected products. As prices normalise, we should see this impact dissipate.”