The Conference Board appoints Maria Demertzis to lead the Economics portfolio for Europe. Plus, improved economic data in July shows positive signs for Thailand's economy. Stay informed about the latest developments in European economics and Thailand's economic performance with 'Simply Economics'.
Sources:
https://www.prnewswire.com/news-releases/the-conference-board-appoints-maria-demertzis-to-lead-economics-portfolio-for-europe-302235192.html
https://www.bangkokpost.com/business/general/2856877/improved-economic-data-in-july
https://moderndiplomacy.eu/2024/08/31/understanding-economic-growth-in-the-digital-economy/
https://www.kaohooninternational.com/economics/543916
Outline:
(00:00:00) Introduction
(00:00:40) The Conference Board Appoints Maria Demertzis to Lead Economics Portfolio for Europe
(00:04:13) Improved economic data in July
(00:07:23) Understanding Economic Growth in the Digital Economy
(00:10:33) Economic Calendar for 2 - 6 September 2024 with PMI, EU's GDP, and Thailand's Inflation Rates
Simply Economics
Conference Board Appoints Maria Demertzis, Thailand’s Economic Growth Improves
The Conference Board appoints Maria Demertzis to lead the Economics portfolio for Europe. Plus, improved economic data in July shows positive signs for Thailand's economy. Stay informed about the latest developments in European economics and Thailand's economic performance with 'Simply Economics'.Sources:https://www.prnewswire.com/news-releases/the-conference-board-appoints-maria-demertzis-to-lead-economics-portfolio-for-europe-302235192.htmlhttps://www.bangkokpost.com/business/general/2856877/improved-economic-data-in-julyhttps://moderndiplomacy.eu/2024/08/31/understanding-economic-growth-in-the-digital-economy/https://www.kaohooninternational.com/economics/543916Outline:(00:00:00) Introduction(00:00:40) The Conference Board Appoints Maria Demertzis to Lead Economics Portfolio for Europe(00:04:13) Improved economic data in July(00:07:23) Understanding Economic Growth in the Digital Economy(00:10:33) Economic Calendar for 2 - 6 September 2024 with PMI, EU's GDP, and Thailand's Inflation Rates
- Duration:
- 13m
- Broadcast on:
- 02 Sep 2024
- Audio Format:
- mp3
[ Music ] >> Good morning, and welcome to Simply Economics. It's Monday, September 2nd. [ Music ] On today's show, the conference board appoints Maria Demertzis to lead the economics portfolio for Europe, and we take a look at the improved economic data in July. Plus, we delve into understanding economic growth in the digital economy. This coverage and more, up next. [ Music ] I'm David, and you're listening to Simply Economics. [ Music ] We start off with news from the conference board, a nonpartisan think tank, which has appointed Maria Demertzis to lead its economics strategy and finance center in Europe. Demertzis, who previously served as deputy director at Bruegel, will oversee the economics team at the conference board Europe, delivering research and guidance to member companies on issues such as European competitiveness, productivity, and economic security. For more on this appointment and its significance, we turn to our correspondent. What can you tell us about Maria Demertzis and her background? >> Maria Demertzis brings a wealth of experience to this role, having worked at the intersection of global macroeconomics and European policy for many years. Prior to joining the conference board, she served as a senior fellow and deputy director at Bruegel, a renowned European think tank. Demertzis has also held positions at the European Commission, the Dutch Central Bank, the Harvard Kennedy School of Government, the University of Amsterdam, and the University of Strathclide. Her expertise in macroeconomic forecasting, modeling, and policy advice will undoubtedly be an asset to the conference board and its member companies. >> The conference board's managing director for international, Sarah Murray, described Demertzis' appointment as invaluable to CEOs and C-suite leaders during a time of upheaval and opportunity for businesses in Europe. Can you elaborate on the challenges and opportunities that European businesses are currently facing? >> European businesses are navigating a complex and rapidly evolving economic landscape. On one hand, they are grappling with the aftermath of the COVID-19 pandemic, which has disrupted supply chains, altered consumer behavior, and accelerated digital transformation. On the other hand, they are also facing long-term structural challenges, such as an aging population, the need to transition to a low-carbon economy and increasing global competition. At the same time, there are significant opportunities for growth and innovation, particularly in sectors such as renewable energy, healthcare, and technology. Demertzis' expertise in macroeconomics and European policy will be crucial in helping the conference board's member companies navigate these challenges and seize opportunities for growth. >> Demertzis herself expressed excitement about joining the conference board, citing the organization's depth of membership base and dedication to delivering authoritative economic analysis. How does the conference board's approach differ from other think tanks or research organizations? >> The conference board is unique in that it is a member-driven organization with a membership base that includes many of the world's leading companies across a wide range of industries. This gives the conference board a deep understanding of the real-world challenges and opportunities facing businesses and allows it to deliver research and insights that are directly relevant to its members. The conference board is also known for its nonpartisan objective approach to economic analysis, which sets it apart from other organizations that may have a particular ideological or political agenda. By delivering trusted insights and authoritative analysis, the conference board helps its member companies make informed decisions and navigate complex economic and business challenges. >> It will certainly be interesting to see how Maria Demertzis and the conference board Europe help guide member companies through the economic challenges and opportunities that lie ahead. Thank you for those insights. Shifting our focus to Southeast Asia, economic data in Thailand showed improvement in July compared to the previous month, largely driven by exports and tourism, according to the Bank of Thailand. For more on this, we turn to our correspondent. What were some of the key factors behind this economic uptick? >> The central bank reported that the number of foreign tourist arrivals after seasonal adjustment rose to 3.1 million in July compared to 2.7 million in June. This increase was attributed to higher visitor numbers from Malaysia, China, Russia, and Europe, although there were declines from the Middle East and India. Importantly, tourism revenue also grew due to higher average spending per visitor, especially from Russian and German tourists. >> And what about the export sector? How did that contribute to the economic improvement? >> Merchandise exports, excluding gold and seasonally adjusted, grew by 2.8% month on month in several categories. This was partly due to precautionary actions by exporters against potential shipping delays. Growth was seen in electronic products, agro-manufacturing, chemicals, and petrochemicals. However, there were declines in some areas like pickup truck exports to Australia, the Philippines, and the Middle East. >> The manufacturing sector also seems to have played a role. What did the data show there? >> The Manufacturing Production Index, after seasonal adjustment, increased in several categories compared to June. >> Auto-production rose to support near-term exports affected by geopolitical conflicts in the Middle East. The rubber and plastic sector posted positive growth, while other sectors benefited from increased production of machinery like electric motors and transformers. However, petroleum output did decline after expanding the previous month. >> Despite the overall economic improvement, were there any areas of concern highlighted by the central bank? >> Private consumption indicators in July remained steady compared to June. Spending on services rose in line with increased passenger transport. However, consumer confidence continued to fall driven by concerns over high living costs, slow economic growth, and political uncertainty. Business sentiment regarding investment also declined, especially in the auto, real estate, and retail sectors. >> Finally, what did the Bank of Thailand say about the bot and foreign exchange developments? >> The bot appreciated against the U.S. dollar in July based on weaker than expected U.S. economic data and easing inflation. The market now anticipates a Federal Reserve interest rate cut, which also pressured the bot higher, along with rising gold prices. The central bank said it is monitoring the bot's movement, given its volatility against the dollar. However, they noted better foreign exchange risk management by local businesses through hedging instruments. Thank you for that comprehensive update on Thailand's economic performance in July. Clearly some positive signs, but also areas to watch closely in the months ahead. Speaking of economic analysis, let's take a step back and look at the bigger picture. Economic growth is a key focus for countries around the world, but achieving it in a sustainable and equitable way is a complex challenge. Microeconomics and macroeconomics offer different lenses to understand these issues. For more insight, we turn to our economics correspondent, Bella. So tell us, what are some of the key differences between micro and macroeconomics when it comes to analyzing economic growth? >> Well, David, microeconomics focuses on the decisions and behaviors of individuals and firms, such as how startups and entrepreneurs establish and grow their businesses. Macroeconomics, on the other hand, looks at the bigger picture. Things like a country's GDP, inflation rates, monetary policy, and unemployment levels. Both are important for understanding growth, but the micro level is where a lot of the dynamism and innovation happens that can drive an economy forward. And we've seen countries like China achieve rapid GDP growth in recent decades through its manufacturing sector. But that trajectory has also come with serious challenges, right? >> Absolutely. China's growth has been impressive, with GDP increasing by an average of nearly 10% per year from 1978 to 2007. Its success as a global manufacturing hub has been driven by low labor costs and other factors. But as the article notes, this has also led to problems like environmental destruction, rising inequality, exploitation of migrant workers, and poor product safety oversight. Sustaining growth and making it more inclusive is an ongoing challenge. Meanwhile, we've seen the digital economy take off in recent years, accelerated by the COVID-19 pandemic. How is that changing the game for startups and small businesses? >> The digital economy is opening up huge opportunities, e-commerce platforms, remote work technologies, artificial intelligence, digital payments, the sharing economy. These are all powerful tools that entrepreneurs can leverage to start and scale businesses in ways that were never before possible. >> Of course, technology is always evolving, so businesses have to stay nimble. But the digital transition is creating a lot of room for new players and ideas. >> So despite the challenges, you see a lot of potential for startups and innovative businesses to be drivers of growth going forward. >> I do. The key is to harness the power of the digital economy in a way that creates value and opportunities while also addressing issues of inclusion and sustainability. Governments have an important role to play in setting the right policies and incentives, but at the micro level, the creativity and dynamism of entrepreneurs is what will shape the next era of growth. As the article puts it, there are still plenty of opportunities out there for those who can navigate the changing landscape. >> Fascinating insights. Thank you, Bella, for breaking this down for us. For simply economics, this is David. And speaking of economic news, this week traders and investors are closely watching key indicators from around the world, including PMI data, EU GDP figures, and inflation rates in Thailand. Here to break down the numbers is our correspondent. So what are the main takeaways from the economic calendar this week? >> Well, David, there are several important data points to keep an eye on. Starting with the manufacturing sector, we have PMI figures coming out for several major economies. In Japan, the Jibun Bank Manufacturing PMI is expected to tick up slightly to 49.5 in August from 49.1 the previous month. However, this still indicates a contraction in the sector. Similarly, China's Keishin Manufacturing PMI is forecast to edge up to 50.0, which would signal a stabilization after contracting in July. >> And what about in Europe and the UK? Those economies have been facing some challenges lately. That's right, the Eurozone's HCO manufacturing PMI is expected to confirm a contraction coming in at 45.6 in August. The UK on the other hand is forecast to see a slight improvement in its S&P global manufacturing PMI rising to 52.5 from 52.1. However, it's important to note that these are still early estimates and subject to revision. >> Moving on to the services sector, what are the key figures to watch there? >> In the services sector, we have PMI data coming out for Japan, China, the Eurozone in the UK. Japan's Jibun Bank Services PMI is expected to confirm an expansion at 54.0 in August. China's Keishin Services PMI is also forecast to show growth, albeit at a slightly slower pace than in July. In the Eurozone in the UK, the HOBE and S&P Global Services PMIs are both expected to confirm expansions, but again, these are still early estimates. >> And finally, what about inflation and trade data? Those are always closely watched by markets. >> Indeed, we have some important inflation and trade figures coming out this week. In the Eurozone, producer prices are expected to fall by 2.6% year on year in July, a slight improvement from the 3.2% decline in June. As for trade, the US balance of trade deficit is forecast to widen slightly to $74 billion in July. Exports are expected to rise to $267.5 billion while imports are forecast at $340 billion. >> Lots of important data to digest this week. Thanks for that comprehensive overview, David. And with that, we wrap up our stories for today. Thanks for listening to Simply Economics. We'll see you back here tomorrow. [MUSIC] [BLANK_AUDIO]