Economy

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The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.The growth was driven by positive performances in the agriculture and services sectors, which grew by 1.15% and 1.43%, respectively, in the first quarter of the fiscal year which ends in June 2025.Pakistan’s economy grew by 2.69% year-on-year in the first quarter of the previous 2023-24 fiscal year.However, the industrial sector contracted by 1.03%, mainly due to a decline in mining and quarrying activities during July-September, read the report. The committee compiling the national accounts approved the introduction of quarterly estimates of expenditure of the economy.On the basis of latest figures of the national accounts aggregates for the last fiscal year, the overall size of the economy stood at 105.6 trillion Pakistani rupees ($379.31 billion).Annual per capita income in rupees was recorded at 472,263 Pakistani rupees ($1,696.35).The committee also approved an updated annual growth rate for the last fiscal year 2023-24, which stood at 2.50%, slightly lower than the previously estimated 2.52%. ($1 = 278.4000 Pakistani rupees) More

(Reuters) -The U.S. Food and Drug Administration said on Friday that it has approved an injectable version of Bristol Myers (NYSE:BMY) Squibb’s blockbuster cancer drug, Opdivo.Opdivo is part of a class of drugs called PD-1 inhibitors, which enhance the immune system’s ability to fight cancer by removing its natural brakes.Like other PD-1 drugs such as Merck (NS:PROR)’s Keytruda, it was previously available through infusions and patients received it via an intravenous drip in a health office. The new injectable form is expected to be more convenient for patients and could help shield the company from erosion of sales when the patent for the intravenous version expires later this decade.The injection, branded as Opdivo Qvantig, has been approved to treat all previously approved adult, solid tumor indications, either on its own, as maintenance therapy or in combination with chemotherapy.The drug will be available in early January, and will be priced at parity with the list price of the IV version, Adam Lenkowsky, Bristol’s chief commercialization officer, told Reuters ahead of the approval.The IV version of the drug has a list price of $7,635 per infusion for two weeks for the lower dose and $15,269 per infusion for four weeks for the higher 480-milligram dose.The approval was based on data from a late-stage study, which showed that the subcutaneous form of the drug was not inferior to the intravenous formulation in patients with advanced kidney cancer who have received prior systemic therapy.The drugmaker is relying on newer treatments like Opdivo Qvantig to drive growth as patents on older drugs, such as cancer drug Revlimid and blood thinner Eliquis, expire later this decade.Opdivo Qvantig was co-formulated with Halozyme Therapeutics (NASDAQ:HALO)’ drug delivery technology, which helps reduce treatment administration from hours-long IV infusions to subcutaneous injections delivered in minutes. More

BRASILIA (Reuters) – After months of rancor, ties between President Luiz Inacio Lula da Silva and Brazil’s central bank look poised for an era of sweetness and light – which is precisely what worries some investors.Gabriel Galipolo, 42, is set to take the reins at the bank on Wednesday. The former deputy finance minister has earned a reputation for economic views that sometimes stray from his predecessor’s embrace of free markets but warm the hearts of left-leaning politicians. While that should help quiet months of sniping from a president exasperated with high interest rates, it may test the new formal independence of that institution, six of its former directors told Reuters.Galipolo takes over from central bank governor Roberto Campos Neto, an appointee of former President Jair Bolsonaro, in the first transition since a 2021 law that required heads of state to wait two years before naming their own central bank chief, in a move designed to boost the bank’s autonomy.The handoff will be scrutinized after frustration with government spending plans triggered a market meltdown, sending Brazil’s risk premium surging and its currency to all-time lows.The central bank declined a request for comment from Galipolo, who now serves as one of its policy directors.Galipolo and Campos Neto have played down their differences and vowed continuity at a shared news conference on Dec. 19.Now leading the country in his third nonconsecutive term, Lula praised Galipolo in a social media video on Dec. 20, vowing fiscal discipline and a hands-off stance toward the central bank. Concerns remain, however, about a shift in monetary policy, dating back to a split policy decision in May when Galipolo and three other Lula appointees voted for a larger rate cut than the Bolsonaro-appointed majority. Starting in January, Lula’s picks will hold seven of the nine seats on the central bank’s rate-setting committee, or Copom.All five of the central bank’s rate decisions since May have been unanimous, including December’s bigger-than-expected 100 basis-point hike that came with surprising policy guidance of planned increases of the same size in January and March of 2025. Despite the united front and hawkish rhetoric from Galipolo, who has pledged independence from Lula, some economists say the market remains unconvinced. “The forward guidance was issued precisely because there are concerns,” said former central bank director Alexandre Schwartsman, appointed during Lula’s first term in 2003. “It’s a symptom, a recognition there are serious doubts about how (Galipolo) will behave, whether he will truly be independent or not.” “We’ll see the true outcome after March,” he added. “Until then, the ghosts of Copom past will hold sway.”LONG SHADOWOne such phantom is that of Alexandre Tombini, the last central bank governor appointed by Lula’s leftist Workers Party. On his watch in late 2012, Copom cut rates and kept them at a record low despite inflation shooting away from the official target.Many economists criticized Tombini for ceding to pressure from then-President Dilma Rousseff to keep borrowing costs low, adding to imbalances in Brazil’s economy that eventually tipped the country into its worst recession in decades.Lula’s allies instead cite his relationship with Henrique Meirelles, whom he tapped to run the central bank during his first two terms from 2003 to 2010 when aggressive monetary policies eventually paved the way for a robust economic boom.Meirelles told Reuters he was confident Lula would respect the central bank’s independence as he had in his prior terms.”If it’s good for the country, it’s good for the government. As long as Lula trusts in this, the relations are likely to become less tense,” Meirelles said in a telephone interview, adding that investors’ biggest concern is Brazil’s surging public debt.Brazil’s Treasury forecasts the country’s gross debt will have climbed by 10 percentage points over Lula’s term to 81.7% of GDP by 2026, considered exceptionally high among emerging-market peers.With less than two years before the next election, aides say Lula has been especially impatient about obstacles to economic growth, including high interest rates.Relations with Campos Neto were also soured from the start after the central bank chief voted in the 2022 election wearing a soccer jersey favored by Bolsonaro’s supporters. Adding insult to injury, he attended a dinner in his honor in June held by Sao Paulo Governor Tarcisio de Freitas, seen as one of Lula’s strongest challengers in 2026.Campos Neto has said central bank officials can be close to political actors while maintaining their independence.Setting aside Lula’s baggage with Campos Neto, some say his personal relationship with Galipolo, whom he has called a “gift” and “a golden boy,” may have swung too far in the other direction.Galipolo joined Lula for bilateral meetings with foreign heads of state in Rio de Janeiro during a summit of the Group of 20 major economies in November and tagged along with Finance Minister Fernando Haddad for meetings in Washington the month before, the kind of events from which Campos Neto was notably absent.Still, opposition lawmakers have praised Galipolo’s qualifications and a Senate committee unanimously approved his nomination. With economic growth around 3.5% in 2024 and record-low unemployment, tight monetary policy has faced limited public backlash. However, former central bank officials believe the real challenge for Galipolo will come when the central bank needs to maintain its position as the economy cools and unemployment rises – a more sensitive issue for a left-leaning government. More

(Reuters) -European stocks edged lower on Monday as elevated government bond yields prompted investors to pull out of equities at the end of a year that has been positive for some regional markets.The pan-European STOXX 600 index dropped 0.3% by 0947 GMT, with technology and industrial goods makers leading broad-based declines.Trading volumes were thin ahead of the New Year holiday on Wednesday. Stock markets in Germany, Italy and Switzerland are shut on Tuesday as well, while those in the UK and France have a half-day trading session.The 10-year German bund yield traded at its highest since mid-November, tracking a rise in U.S. Treasury yields, as uncertainty around monetary policy next year and prospects of inflationary policies under a Trump presidency weighed on investor sentiment.The STOXX 600 is still on course for a 5.9% annual rise, with German stocks leading regional gains and French shares lagging.Still, the European benchmark lags the S&P 500’s 25% surge this year as interest rate cuts from the Federal Reserve and a boom in AI trades boosted Wall Street’s tech behemoths. “The surging S&P 500 and Nasdaq underscore the market’s tech-fuelled triumph, though last Friday’s sell-off, triggered by climbing Treasury yields, was a sobering reminder of lingering rate concerns,” said Matt Britzman, senior equity researcher at Hargreaves (LON:HRGV) Lansdown.The German DAX dipped 0.3% on its final trading day of the year but looked on course for a 19% annual surge, making it the top performer this year among major European bourses.On the flip side, France’s CAC 40 was set for an annual drop of 2.5%, driven by concerns about the country’s spiralling fiscal deficit and political turmoil. Siemens (ETR:SIEGn) Healthineers dipped 1.2% after Siemens AG (OTC:SIEGY)’s Chief Financial Officer Ralf Thomas told the Handelsblatt newspaper that the German technology group is reviewing its majority stake in its medical technology unit.BayWa surged 12% after the Munich-based trader of farming supplies and produce said it had reached a restructuring agreement with its major shareholders and financiers. More

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BEIJING (Reuters) – A record 3.4 million young Chinese flocked to the civil service exam this year, lured by the prospect of lifetime job security and perks including subsidised housing as an economic slowdown batters the private sector and youth unemployment remains high.Applicant numbers, which surged by over 400,000 from last year and have tripled since 2014, reflect the huge demand for stability from disillusioned Gen Z Chinese and the lack of attractive options in the private sector even though local governments are struggling to pay wages due to a fiscal crisis. Klaire, a master’s student in Beijing, took the notoriously competitive exam in early December, studying for nine hours a day and spending 980 yuan ($134) on online tutoring. She cited social prestige and stability as major factors why she is only applying for government or state-owned enterprise (SOE) jobs. Klaire has also seen colleagues get laid off during a previous tech internship.”I only want to pass the exam and not worry about what happens next,” said the 24-year-old, withholding her surname for privacy reasons.”Despite personally knowing civil servants who haven’t been paid for months, I still applied because I don’t wish to make lots of money.”If she passes the exam, she will have a further interview as well as political background and physical checks, with the final outcome expected around April.Layoffs are rare in China’s civil service, earning it the “iron rice bowl” moniker, though individuals can be dismissed for disciplinary violations. “The current leadership has no intent of reducing the size of public sector workers, who are the backbone of regime stability,” said Alfred Wu, associate professor at National University of Singapore. Most civil service openings have an age limit of 35 and offer subsidised housing and social insurance, a major attraction for graduates disillusioned by the paucity of private sector job opportunities. Youth unemployment rates, which fell slightly in recent months, remain elevated compared to pre-pandemic figures as China’s economy struggles to recover amid a prolonged property sector crisis and frail consumption.Many Gen Z Chinese “feel a strong sense of burnout and don’t know what is meaningful” after having their university years defined by the pandemic and China’s economic slowdown, said a Chinese sociology professor on condition of anonymity. As the present generation of Chinese graduates have not experienced the mass state sector layoffs of the 90s, many have an idealised view of government work, he said, noting an apt summation in a social media meme: “Becoming a civil servant is the endpoint of the universe”.WAGE WOESHowever, rare interviews with ten public sector employees across four Chinese provinces paint a different picture: widespread bonus reductions and pay cuts of up to 30% this year have prompted some to consider resigning, while local government austerity drives have led to sporadic staff cuts. Some civil servants say they have been unpaid for months. Others survive on as little as 4,000 yuan ($550) monthly while supporting families and paying off loans. Many asked for anonymity to avoid retribution.Despite these obvious woes, high nationwide youth unemployment has fed strong demand for civil service roles, which have surged from 2019’s 14,500 to 39,700 this year.Katherine Lin quit her civil service job in the southern megacity of Shenzhen in July after her 15,000 yuan ($2000) salary dropped by a quarter, bonuses were scrapped, and managers hinted at further downsizing. “Some departments chose to either cut salaries by 30% or fire people in response to cost-cutting policies,” she said. At least three Shenzhen district-level bureaux were merged and nine employees dismissed this year, public notices show. In her housing bureau role, she handled an unprecedented number of migrant worker protests last December, when they normally demand wages before Chinese New Year. Another civil servant in rural Guangdong province described his salary of 4,000 yuan ($550) as “stable poverty” after monthly bonuses of 1,000 yuan ($140) stopped in June. In Shandong, civil servants complained on social media in September about being paid only one month per quarter, part of a policy called “guarantee four (months’ salary), strive for six”. The State Council and Shenzhen government did not reply to faxed requests for comment.DOWNSIZING PRESSUREBeijing has long faced calls to reform its bloated state sector. Despite repeated downsizing campaigns, China’s civil service jobs swelled from 6.9 million in 2010 to 8 million currently, with at least a further 31 million public employees such as school and hospital workers who have fewer employment protections than civil servants.Chinese provinces have quietly cut tens of thousands of public sector positions since 2020, mostly through hiring reductions and attrition. Wage arrears are “systematic and universal across the country, and are impossible to solve substantially in the short term,” said a governance professor at an elite Chinese university on condition of anonymity, adding that this could increase corruption as officials supplement their salaries through tips and bribes, as well as increased administrative fines for citizens. “The most pressing issue now is social stability,” said the professor. “Therefore the lesser of two evils will cause the expansion of civil service hiring and the neglect of institutional reform.” More