Posts Tagged ‘Business and Economy

05
Sep
11

India Imports Up

If there is any doubt why India is entering into expansion mode with their ports, then last weeks numbers of gross imports will help put that into perspective. Asia’s third largest economy cracked the scales with an increase of 31%  in the April/May, compared to the same period last year.

Container Ship

Imports Soar in April May

Crude oil imports continued to increase along with edible oil and pulses (peas, beans and lentils), according to official figures. India imports close to four fifths of its oil. According to country’s Commerce ministry sources, India imported 13.58 million metric tons of oil in July, up by 2.6 percent that is up by 3.13 million barrels a day.

Large developing nations clamoring for the black gold could drive up prices and slow down development but I argue whether or not Middle Eastern or other big exporters of oil would let prices to too high, in favor of increased economic development.

The country’s imports of pulses and edible oil, went up by 24.7% in the April-May period this year. India’s import of pulses, shot up by 38.6%

Items such as food grains, automobiles, milk and beverages fall in the sensitive category and the import of these goods is monitored by the government to see if there is any adverse impact on the domestic industry.

During the first two months of the current fiscal year, the import of items such as alcoholic beverages and spices also increased by 60.4% and 30.5%, respectively. However, imports of food grains, fruits and vegetables, tea and Coffee contracted by 81.3%, 1.9% and 42.6%.

Coffee Drinkers are Getting Their’s Local

Since 1950 the total area of planted coffee in India has exploded. For the Arabica bean it has increased over 300% and for the Robusta bean, it has grown over 1000%. More and more young Indians are taking to the drink than ever before. With a very low average age (65% of the population is under 35 and it’s expected that the average age in 2020 will be 29 years old) in India and a more affluent generation coming onto the scene, many of them are taking to the cafe’s to relax, carry on business, or just get away.

Demand is Calling

Last month, we wrote on the blog about a new planned investment of $60 billion to expand and renovate Indian ports. This investment is part of a  bigger $1 trillion dollar initiative aimed at bringing the ports, roads and infrastructure in the country up to speed by the year 2020.

Leif Eskesen, of economist at HSBC Holdings Plc said,“If there isn’t enough capacity, you lose time and it adds to cost.” India is working on fixing this. An industrial expansion and high food prices, resulting from the combined effects of the weak 2009 monsoon season and inefficiencies in the government’s food distribution system, fueled inflation which peaked at about 11% in the first half fo 2010, but has gradually decreased to single digits following a series of central bank interest rate hikes.

There’s a lot that can be done with a trillion dollars. It looks like India s up to the task. All eyes are on Asia right now. India and China have a lion’s share of the focus but there are many other emerging markets that are pushing container demand around our region. At Pacific Tycoon, we supply them with the necessary containers to transport the cargo. Contact us to see how you can invest in shipping container, earn guaranteed money, and free up a portion of your volatile stock portfolio for a safer alternative.

Image:ProvidenceEdu

Source: IndiaCoffee, CommodityOnline

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13
Jul
11

12 Fastest growing economies 2011. Who’s on top?

If you guessed Africa, give yourself 5 points. If you guessed Asia, high-five your neighbor. If you guessed any developed country in North America or Europe, pick up your crayons and get back to coloring. This year, as was the same as last, Africa and Asia are dominating the top performing countries in terms of GDP growth.

Ghana, Africa

He’s not the only one smiling in Africa

Ghana has taken charge this year. As of half way through the year, they are looking at a projected full year GDP increase of over 20%. And they’re not the only ones in Africa that are taking things into their own hands and posting robust growth. The list as of half-way through the year sports 40% of the top 10 coming from Africa. Not bad guys.

Last year’s combined growth of the top 10 was 101.22 with an average growth of 10.122. This year’s combined growth from the top 10 is 105.337 and the average was 10.5337. This is up just slightly from last year. Another notable change was this year there are three countries with double-digit growth. Last year there were four.

This year’s leader, Ghana, who is pushing a 20+ projected growth rate was only at 5.735 last year. I’m going to answer both our questions right now.

Where is it coming from

In a post from the Ghana government website in January of this year, the World Bank projected that growth in Ghana would top 13% this year, leading the African continent into uncharted territory atop the list of fastest growing countries. A lot has changed in 6 months.

“Mr. Andrew Burns, Manager of Global Macroeconomics in the World Bank’s Prospects Group, said Ghana is still in position to register strong economic growth without the oil sector, particularly in construction services as large infrastructure projects are being undertaken.

He said developing countries have recovered so fast from the global economic downturn and are now pulling along the high income countries, which is unusual.

The report noted that Africa appears to have sustained growth and transformation in 2010 and the private sector is increasingly attracting investment into their economies, adding “Africa appears to be poised for sustained growth due to private capital flows.”

The World Bank said most developing countries have in addition, recovered from the world food crisis and has projected a steady global growth for developing countries.

“The world economy is moving from a post-crisis bounce-back phase of the recovery to a slower but solid growth in 2011 and next with developing countries contributing almost half of the global growth,” it said. ” Ghana.gov

It’s fitting that the world cup was hosted in Africa last year. Not only has the country’s football prowess been honed, but this is clearly an era where the African nation is beginning to shine. The World Cup seems like a kickoff for the nation onto the world scene. People are starting to take notice. Investment money both public and private, local and foreign are pouring in to help develop the countries and quench the thirst for demand that is rolling through the continent.

More Winners

Qatar, the richest country in the Muslim world, had a projected growth rate over 16% for 2010 and is down slightly to 14% this year, allowing more than enough room for Ghana to take over the number one spot. Other countries in the top 10 are, in order of their ranking: Ghana (20.146%), Qatar (14.337%), Turkmenistan (12.178%), China (9.908%), Liberia (9.003%), India (8.43%), Angola (8.251%), Iraq (7.873%), Ethiopia (7.663%), and Mozambique (7.548%).

Contact PacificTycoon today to see how we can help you take advantage of this explosive growth, put money in you pocket every month, and insure your money.

Image:SportTrops

Sources: EconomyWatch2010, EconomyWatch 2011, Ghana.Gov




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