Business

Euro zone outlook gets slight boost from EU stimulus deal: Reuters poll

Published

4 years ago

July 29, 2020

BENGALURU (Reuters) – Euro zone economic growth next year will be slightly stronger than previously thought, according to a Reuters poll of forecasters taken after European Union leaders agreed on 750 billion euros to support economies ravaged by the coronavirus.

But economists surveyed July 22-28 also concluded it would take two or more years for euro zone gross domestic product to reach pre-COVID-19 levels, despite trillions of euros of stimulus from the European Central Bank and governments.

The deal, which was not unexpected but was decided earlier than many analysts had anticipated, will bring the EU to the capital markets as a borrower for the first time. But that economic stimulus won’t be felt until 2021.

About three-quarters of economists, or 29 of 38, said their confidence around the prospects for euro zone economies from next year onward had improved, including three who said it had significantly improved. But for now, they only marginally upgraded their growth forecasts.

“While the size of the fund is not large enough to be a game changer from a macroeconomic perspective, common issuance of this magnitude of debt is a historic step for Europe and represents a pivotal change in the way the EU tackles crises,” said Angel Talavera, head of European economics at Oxford Economics.

Despite a surge of new infections in Spain, an early epicentre of the pandemic that has prompted fears of a second wave of infections, the region has emerged from stringent lockdowns after having handled the pandemic better than the United States.

However, nearly 70% of respondents to an extra question, or 26 of 38 economists, said it would take at least two years for euro zone GDP to reach pre-COVID-19 levels. Not one said it would take less than a year.

The wider Reuters poll of around nearly 60 forecasters predicted the economy would shrink 8.0% in 2020, the worst year since the single currency was launched. That will be followed by a 5.5% expansion in 2021, unchanged from the previous poll.

The latest poll showed GDP shrinking 11.8% this quarter compared with the first three months of the year, better than the 12.2% contraction forecast a week ago. It is then forecast to grow at 8.1% in the current quarter and 2.8% in the next compared with 8.3% and 3.1% earlier.

In 2021, the economy is predicted to expand 1.4% in the first quarter, unchanged from the previous poll, followed by 1.1%, 0.8% and 0.6% in the second, third and fourth quarters, slightly better than median predictions for growth at 1.0%, 0.6% and 0.6% made just before the deal was agreed.

“Given the size and extent of the shock, it (the EU stimulus) can only smooth things out, not completely cancel any of the negative factors,” said Yvan Mamalet, senior euro area economist at Societe Generale.

“We will probably see some second-round effects like an increasing unemployment rate and corporate defaults when it becomes clear that some of the demand will never be recovered.”

Reuters poll graphic on the euro zone economic growth outlook: here

The euro zone’s two largest economies were forecast to make a sharper recovery in 2021 than expected in April, with Germany forecast to grow 4.7%, up from 4.4%, while for France 2021 growth was upgraded sharply to 7.3% from 4.2%.

The outlook for Italy, among the hardest-hit by the pandemic, was substantially brighter than in April, and is expected to grow 6.2% in 2021, up from previous predictions for an expansion of 5.0%.

As with most developed economies, the outlook for inflation has barely moved in recent months, expected to remain low. ECB rates are forecast to remain unchanged for several years.

Reporting and photo: Reuters

Business

Maldives celebrates arrival of 2024’s 1 millionth tourist

Published

4 weeks ago

June 27, 2024

m@ldives

Maldives on Thursday welcomed the one millionth tourist to visit this year.

The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.

Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.

After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).

Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.

Maldives expects to reach 2 million tourists this year.

Business

New air route connects Chongqing to Maldives

Published

1 month ago

June 25, 2024

m@ldives

Chongqing Airlines on Monday began its inaugural flights to Maldives.

The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.

The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.

“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.

Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.

In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.

China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.

Business

CROSSROADS Maldives Introduces Weixin Pay at resorts for seamless guest experience

Published

1 month ago

June 21, 2024

m@ldives

CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.

Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.

The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.

SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.

Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.