Thailand posted a current account deficit in January due to a surge in gold imports.

In January 2024, Thailand's current account shifted from a surplus of $2.1 billion to a deficit of $191 million due to a $1.1 billion trade deficit caused by increased gold imports. Excluding gold imports, the current account would have remained in a slight surplus. Thailand's exports in January increased by 7.2% compared to the previous year, while imports rose by 1.5%. Gold imports surged by nearly 230% on an annualized basis. Despite the current account deficit, Thailand experienced a significant increase in foreign tourist arrivals. Between January and February, there were nearly 6 million arrivals, a 48% increase compared to the previous year. The Bank of Thailand will closely monitor the global economy, geopolitical conflicts, and the Federal Reserve's interest rate decisions. The central bank resisted calls to lower the key interest rate and kept it at 2.50%, the highest in over a decade.

https://internasional.kontan.co.id/news/impor-emas-melonjak-thailand-catat-defisit-transaksi-berjalan-pada-januari

China has granted Pakistan a debt of US$2 billion.

According to Pakistan's Interim Finance Minister, China has extended a $2 billion loan to Pakistan. The loan, which was originally due in March, has been extended for another year. Pakistan is facing financial difficulties and a fragile economy, and has also received a $3 billion bailout from the International Monetary Fund. The government is currently facing the pressing issue of securing funding from both multilateral and bilateral partners. This loan extension from China will provide some relief to Pakistan's financial situation.

https://internasional.kontan.co.id/news/china-beri-utang-us-2-miliar-kepada-pakistan

Japan is still struggling to emerge from a recession.

In January, Japan's factory output experienced its sharpest decline since May 2020, mainly due to a decrease in motor vehicle production. This contraction raises concerns about the fragility of the Japanese economy, which was already on the brink of recession at the end of last year. According to data from Japan's Ministry of Economy, Trade and Industry (METI), industrial output fell by 7.5% in January, worse than the market's projected contraction of 7.3%. METI has downgraded its industrial output assessment for the first time since July 2023, indicating the significant economic challenges Japan faces in recovering from recession. Motor vehicle production experienced the greatest decline, falling 17.8% from December. Additionally, the production of electric machinery and information and communication electronic equipment, including lithium-ion batteries, also slumped by 8.3%. Based on the factory output data, Gabriel Ng, an assistant economist at Capital Economics, predicts that Japan's GDP will likely contract in Q1 2024, indicating further decline in the country's economy.

https://internasional.kontan.co.id/news/jepang-masih-sulit-lepas-dari-resesi

Shell begins to sell off renewable energy assets.

Shell's US business unit, Savion, is selling 25% of its assets, which is a setback for the company's renewable energy projects. Investment bank Jefferies is handling the sale of up to 10.6 GW of solar power generation and storage assets that Savion is currently developing. The value of these assets has not yet been determined. Savion is currently working on solar and storage projects with a total capacity of 39.1 GW, having successfully completed a large 2.3 MW project. In 2021, Shell acquired Savion to expand in the low-carbon energy market and reduce its carbon footprint. However, under the leadership of CEO Wael Sawan, Shell's strategy has shifted towards prioritising the most profitable businesses. Sawan has stated that the company wants to prioritise access to low-carbon energy that can be sold and traded, rather than owning generation assets that tend to generate lower profits.

https://internasional.kontan.co.id/news/shell-mulai-lepas-aset-di-energi-terbarukan#google_vignette