theSun | THURSDAY APRIL 23 2009  17

business

China’s economy
recovering: Central bank
SHANGHAI: China’s central bank said as its exports were hit hard amid the government is aiming for CPI growth
Taiwan jobless rate hits record 5.8%
TAIPEI: Taiwan’s unemployment rate rose to a record
5.81% last month as businesses slashed jobs in the
yesterday the government’s stimulus global financial crisis. of 4% for 2009. ongoing recession, the government said yesterday.
package had kicked in and the nation’s China’s economic growth slowed to Yi called the surge in new bank loans March unemployment was up from 5.75% the previ-
economy was showing signs of recov- 6.1% in the first quarter, which several in the first quarter of this year “a positive ous month and was 1.95% higher than a year earlier, the
ery. analysts said was the lowest in nearly development” but added that lending Directorate-General of Budget, Accounting and Statistics
Quarter-on-quarter data indicated the two decades, from 6.8% in the fourth activity ought to be stabilised at a sus- said. The number of people out of work rose to 630,000,
last three months of 2008 was the bottom quarter of last year. tainable level, according to Dow Jones. up 6,000 from a month earlier. – AFP
of the downward cycle for the world’s But some other data for March Chinese banks extended a total of
third largest economy, Dow Jones showed a noticeable improvement, 4.6 trillion yuan in new lending in the Volvo Group to cut 1,543 jobs
Newswires quoted People’s Bank of with the industrial output rising 8.3% first quarter as the stimulus package
China vice-governor Yi Gang as saying. last month from a year earlier, com- rolled out, more than 90% of the central STOCKHOLM: Sweden’s struggling Volvo Group, which
“The economy is going forward pared with 3.8% in the first two months government’s minimum target of five has announced thousands of layoffs in recent months,
as the stimulus package has started of this year. trillion yuan for the full year. Enter said yesterday it would slash another 1,543 jobs in
working,” Yi was quoted as saying at a Yi said China was facing some Speaking about China’s massive for- the Sweden, most of them in its Volvo Trucks unit.
financial forum in Beijing. deflationary pressures, referring to the eign reserves, which stood at US$1.95 “As a result of the sharp decline on world markets
“The second quarter and the re- decline in March’s consumer price in- trillion at the end of March, Yi said they
Grand for heavy vehicles, the Volvo Group is being forced
mainder of this year will continue this dex (CPI), the main gauge of inflation. were “already enough” and he hoped Picasso to implement new personnel reductions within its
recovery trend.” The CPI will be “very low” but “hope- they would remain stable. pg 22 Swedish operations,” it said in a statement. The
China announced a four trillion fully” positive this year, he added. He also reaffirmed China’s stance company has in recent months announced 5,800
yuan (RM2.13 trillion) stimulus pack- China’s consumer prices fell 1.2% that, as a large holder of dollar assets, job cuts. – AFP
age in November in a bid to boost last month from a year earlier, fol- it is a long-term investor, not a short-
investment to prop up the economy lowing a 1.6% drop in February. The term speculator. – AFP PCCW buyout bid blocked
HONGKONG: Hongkong’s Court of Appeal yesterday
The blocked a US$2.1-billion (RM7.644 billion) buyout bid by
telecom giant PCCW, in a stunning victory for small share-
economy is
UK to shrink at fastest pace going forward
holders over one of the city’s richest tycoon families.
In a unanimous ruling, a three-judge panel said it had
rejected a lower court’s decision to approve the plan
since 1945, debt at record as the stimulus
package
by PCCW chairman Richard Li to take the city’s largest
fixed-line operator into private hands.
The decision is seen as a hammer blow to Li – son
LONDON: Britain’s budget in two years start steaming return to growth, drop a further
deficit will soar to a record ahead at a rate of 3.5% to bring 0.4% in 2010. has started of Hongkong’s richest man, Li Ka-shing – who has been
struggling to either sell or take the firm private for three
£175 billion (RM945 billion) as
the economy shrinks at its fast-
the public finances back on a
sustainable path.
With tax revenues and
collapsing and social security
working.” years. – AFP
est pace since World War II this “These forecasts are mildly payments soaring – Britain’s
year, finance minister Alistair optimistic in the near term and unemployment rate is at a 11-
Darling said yesterday. much more optimistic in the year high – Darling predicted
To help bridge the yawning long term,” said Howard Archer, borrowing would total £175
gap, Darling will slap a new 50% economist at Global Insight. billion, more than 12% of GDP,
tax rate on the highest earners Bond markets took fright. this fiscal year and £173 billion
but the government will still The June gilt future fell more next year.
have to issue a record £220 than a full point as details of The combined total is £125
billion of government bonds, the extent of government bond billion higher than he predicted
way above even the highest supply came out, around a third just five months ago.
forecasts. of the total existing stock. The day’s big surprise,
With an election due by “It was certainly a shock, the however, was the decision to
June 2010 and the Labour market is taking it a bit hard,” raise the top rate of tax for
Party way behind in the polls, said Sean Maloney, strategist people earning over £150,000
Darling forecast the economy at Nomura. (RM810,000) to 50% from 40%,
would start growing again next The pound also tumbled by as of next April, shortly before
year, by as much as 1.5%, and more than 1% against the dollar the expected date of the next
pledged several billion pounds on concerns about the viability election.
of spending to support industry of the public finances. In addition, those earning
and jobs. Darling predicted the over £100,000 (RM540,000) will
“The action already taken economy would shrink by 3.5% lose their tax free allowances
here, and internationally, and this year, the fastest rate of and will also lose the higher
the measures I will announce contraction since 1945. Many rate of relief they get on pen-
today, mean that I expect the countries are in the same boat sion contributions.
economy to start growing again as a global credit crunch has But the revenues these
towards the end of the year,” ravaged the world economy measures will raise is small and
Darling, 55, told a packed lower and cost millions of jobs. analysts questioned whether
house for his second annual The International Monetary the moves might be more
budget. Fund was more pessimistic, politically-inspire as a way of
But analysts were sceptical forecasting yesterday that creating a dividing line between
that recovery could come so Britain would contract by 4.1% Labour and the centre-right
soon and even more so of fore- this year, and in stark contrast opposition Conservatives.
casts that the economy would to Darling’s forecast of a quick – Reuters

Australia in recession, says Rudd

MELBOURNE: Australian Prime Minister
Kevin Rudd yesterday followed his central
bank chief in declaring the country was al-
ready in recession, without waiting for official
figures.
Rudd changed his assessment after stat-
ing on Monday that recession was inevitable
but had not yet arrived.
His latest comments come after Reserve
Bank governor Glenn Stevens said on Tuesday
that any “reasonable person” would say Aus-
tralia was in recession, pre-empting growth
figures for the latest quarter.
“This global economic recession has also
dragged Australia into recession and has also
produced the single biggest collapse in tax
revenues in post-war Australia,” Rudd said.
“We are in an exceptionally deep and
widespread global recession.”
Rudd said the global downturn meant
the government had never framed its an-
nual budget, due on May 12, in more difficult
circumstances.
“That is why temporary deficits are neces-
sary and temporary government borrowings
are necessary as well, necessary to support
businesses and support jobs until the private
sector recovers,” he said.
Australia’s last recession was in the early
1990s but the economy posted its first nega-
tive growth figures for eight years in the final
quarter of 2008, with a similar result expected
in the first three months of 2009.
That would officially tip Australia into re-
cession, usually defined as two consecutive
quarters of negative growth. – AFP