Global COVID-19 update with only 2.3% of people in low-income countries receiving at least one vaccine dose. New Zealand abandoned its zero-COVID strategy amid a persistent Delta outbreak. Theme parks in Japan were busy on a sunny Saturday as restrictions eased. The UK faced a fuel crisis with shortages at gas stations due to a lack of truck drivers. Evergrande's debt crisis in China caused its dollar bonds to drop in value. Over half of China's provinces limited electricity use due to a power shortage caused by stopping Australian coal imports and manufacturing contracting again in September.
The document provides updates on several economic topics:
- COVID-19 - Vaccination rates remain low in low-income countries. Sydney's lockdown is ending sooner for vaccinated people. Japan may lift its COVID state of emergency.
- The US Federal Reserve - Officials are now split on whether to raise interest rates in 2022. Growth forecasts for this year were lowered due to temporary factors. Treasury yields and the USD/JPY rate are given.
- Angela Merkel - As the German Chancellor prepares to leave office after 16 years, her time overseeing the German economy is summarized.
- Huawei - An update is provided on executive Meng Wanzhou's return to China from Canada.
The document provides an economic outlook and updates on several topics:
- COVID-19 cases continue to rise globally with over 226 million total cases and 4.6 million deaths reported. Vaccination rates remain low in poorer countries.
- Economic recovery is underway in some countries as lockdowns ease like in Australia and New Zealand cases decline, while Singapore saw a rise in daily cases in August.
- Thailand's vaccination rate varied by region as of September 19th according to the Ministry of Higher Education, Science, Research and Innovation.
- Other sections discuss the CPTPP trade agreement and China applying to join, the debt crisis of Chinese real estate giant Evergrande, and economic indicators in the United Kingdom.
India's energy consumption grew only 0.8% in fiscal year 2020 and is expected to decline between 2-7% in fiscal year 2021 due to the COVID-19 pandemic. Energy demand had been growing between 4-6.9% annually from 2016-2019 but slowed in the second half of 2019 due to an economic slowdown. Demand further declined sharply in March 2020 when India imposed a nationwide lockdown, with average daily demand falling over 25% year-over-year in the first 3 weeks. Even in the most optimistic scenario, energy demand may not reach fiscal year 2020 levels until a month after lockdowns are lifted, resulting in at least a 2% decline for fiscal year 2021.
The document summarizes recent economic news from around the world in 6 points: 1) The G7 reached a tax deal, 2) The chip shortage is expected to last until late 2022, 3) Global food prices rose rapidly in May, 4) The US added 559,000 jobs in May and narrowed the gap from pre-pandemic unemployment levels, 5) Thailand's government economic stimulus measures, and 6) An image of Sun Moon Lake.
This document discusses the importance of investment and factors related to economic growth and retirement planning. It covers topics such as types of investment risk, GDP growth of India over the years, impact of increasing GDP such as decreasing interest rates and inflation, and increasing life expectancy. It also discusses different types of pensions including social, occupational and individual pensions. Individual pensions can be accumulation-based or deferred plans like National Pension Scheme. The document recommends wise investment decisions for retirement such as guaranteed pension rates and tax benefits of some pension plans.
“The blowout in rental vacancy rates for the major CBDs suggests a mass exodus of tenants occurred over the course of March and April. This might be attributed to the significant loss in employment in our CBDs plus the drop off in international students,” he said.
Brisbane and Adelaide both saw their CBD vacancy rate double as well, albeit from smaller bases, jumping to 11.3% and 6.6% apiece.
Looking at the capital city markets as a whole, Darwin proved the only exception to rising rates across the board.
The document provides updates on several economic topics:
- COVID-19 - Vaccination rates remain low in low-income countries. Sydney's lockdown is ending sooner for vaccinated people. Japan may lift its COVID state of emergency.
- The US Federal Reserve - Officials are now split on whether to raise interest rates in 2022. Growth forecasts for this year were lowered due to temporary factors. Treasury yields and the USD/JPY rate are given.
- Angela Merkel - As the German Chancellor prepares to leave office after 16 years, her time overseeing the German economy is summarized.
- Huawei - An update is provided on executive Meng Wanzhou's return to China from Canada.
The document provides an economic outlook and updates on several topics:
- COVID-19 cases continue to rise globally with over 226 million total cases and 4.6 million deaths reported. Vaccination rates remain low in poorer countries.
- Economic recovery is underway in some countries as lockdowns ease like in Australia and New Zealand cases decline, while Singapore saw a rise in daily cases in August.
- Thailand's vaccination rate varied by region as of September 19th according to the Ministry of Higher Education, Science, Research and Innovation.
- Other sections discuss the CPTPP trade agreement and China applying to join, the debt crisis of Chinese real estate giant Evergrande, and economic indicators in the United Kingdom.
India's energy consumption grew only 0.8% in fiscal year 2020 and is expected to decline between 2-7% in fiscal year 2021 due to the COVID-19 pandemic. Energy demand had been growing between 4-6.9% annually from 2016-2019 but slowed in the second half of 2019 due to an economic slowdown. Demand further declined sharply in March 2020 when India imposed a nationwide lockdown, with average daily demand falling over 25% year-over-year in the first 3 weeks. Even in the most optimistic scenario, energy demand may not reach fiscal year 2020 levels until a month after lockdowns are lifted, resulting in at least a 2% decline for fiscal year 2021.
The document summarizes recent economic news from around the world in 6 points: 1) The G7 reached a tax deal, 2) The chip shortage is expected to last until late 2022, 3) Global food prices rose rapidly in May, 4) The US added 559,000 jobs in May and narrowed the gap from pre-pandemic unemployment levels, 5) Thailand's government economic stimulus measures, and 6) An image of Sun Moon Lake.
This document discusses the importance of investment and factors related to economic growth and retirement planning. It covers topics such as types of investment risk, GDP growth of India over the years, impact of increasing GDP such as decreasing interest rates and inflation, and increasing life expectancy. It also discusses different types of pensions including social, occupational and individual pensions. Individual pensions can be accumulation-based or deferred plans like National Pension Scheme. The document recommends wise investment decisions for retirement such as guaranteed pension rates and tax benefits of some pension plans.
“The blowout in rental vacancy rates for the major CBDs suggests a mass exodus of tenants occurred over the course of March and April. This might be attributed to the significant loss in employment in our CBDs plus the drop off in international students,” he said.
Brisbane and Adelaide both saw their CBD vacancy rate double as well, albeit from smaller bases, jumping to 11.3% and 6.6% apiece.
Looking at the capital city markets as a whole, Darwin proved the only exception to rising rates across the board.
The document compares key economic and social indicators between the United Kingdom and South Korea. It finds that the UK has higher unemployment, healthcare spending, infant mortality, and social inequality than South Korea. However, the UK uses less electricity and oil than South Korea. South Korea has experienced faster economic growth through industrialization and exports, leading to lower unemployment and inflation than the UK.
Up-to-date global electricity dataset, with analysis of the global electricity transition. Full the full report, dahboard and dataset, see https://ember-climate.org/project/global-power-2020/
The document discusses the need for brands to ensure environmental progress made in 2019 is not lost after the COVID-19 pandemic. It notes 2019 saw increased public awareness and corporate action on climate change, but COVID shifted priorities to health and economic issues. The pandemic both positively and negatively impacted the environment. It reduced pollution but also saw increased packaging waste. The summary calls for sustainability to retake its place as a priority in government action during economic recovery efforts.
This document provides an overview of recent news from the past week. It discusses the novel coronavirus outbreak in China, including key updates on the number of affected countries and cases. It also discusses the impacts on supply chains and transportation due to China's lockdown. Other topics summarized include Brexit, the Indian budget, Trump's impeachment, the emergency situation in Australia due to bushfires, and recent technology news.
Pessimism about recovery is at an all-time high in the United Kingdom. Rising prices are the top concern, with consumers significantly trading down in stores and products. UK consumers are feeling great economic uncertainty. With energy and transport costs eating away at consumer savings and non-food spend, the top reasons given by survey participants for economic anxiety are the gas supply, supply-chain shortages, and energy issues. Consumers report the highest perceived price increases in groceries and household supplies, with two-thirds becoming more conscious about energy usage. Half of consumers changed their grocery brands in the last four to six weeks, with trading down a clear trend: price and value were the strongest drivers here.
EU Basks in Solar Glory - UK and Germany Energy Breaks Records!Hope Small
Not what you would call the sunniest countries!Britain and Germany have broken records for generating
solar electricity in the last few weeks, according to new industry figures.
Germany generated over half its electricity demand from solar for the first time ever on 9 June, and
the UK, basking in the sunniest weather of summer during the longest days of the year, nearly doubled
its 2013 peak solar power output at the solstice weekend.
France, Italy, Denmark and other countries are also believed to have generated record amounts in
June.
Source: http://www.theguardian.com/environment/2014/jun/23/uk-and-germany-break-solar-power-records
- 30% of the world's population has received at least one dose of a COVID-19 vaccine, and 15.5% are fully vaccinated
- Protests against health passes requiring vaccination proof to enter certain public places in France drew over 237,000 people across 150 cities for the fourth consecutive week
- U.S. states that voted for Biden in the 2020 election have the highest adult vaccination rates according to CDC data
- Thailand's economic activity indicators like mobility and equity markets fluctuated as new COVID cases rose through July and August while vaccination rates increased
The document compares key economic and social indicators between the United Kingdom and South Korea. It finds that the UK has higher unemployment, healthcare spending, infant mortality, and social inequality than South Korea. However, the UK uses less electricity and oil than South Korea. South Korea has experienced faster economic growth through industrialization and exports, leading to lower unemployment and inflation than the UK.
Up-to-date global electricity dataset, with analysis of the global electricity transition. Full the full report, dahboard and dataset, see https://ember-climate.org/project/global-power-2020/
The document discusses the need for brands to ensure environmental progress made in 2019 is not lost after the COVID-19 pandemic. It notes 2019 saw increased public awareness and corporate action on climate change, but COVID shifted priorities to health and economic issues. The pandemic both positively and negatively impacted the environment. It reduced pollution but also saw increased packaging waste. The summary calls for sustainability to retake its place as a priority in government action during economic recovery efforts.
This document provides an overview of recent news from the past week. It discusses the novel coronavirus outbreak in China, including key updates on the number of affected countries and cases. It also discusses the impacts on supply chains and transportation due to China's lockdown. Other topics summarized include Brexit, the Indian budget, Trump's impeachment, the emergency situation in Australia due to bushfires, and recent technology news.
Pessimism about recovery is at an all-time high in the United Kingdom. Rising prices are the top concern, with consumers significantly trading down in stores and products. UK consumers are feeling great economic uncertainty. With energy and transport costs eating away at consumer savings and non-food spend, the top reasons given by survey participants for economic anxiety are the gas supply, supply-chain shortages, and energy issues. Consumers report the highest perceived price increases in groceries and household supplies, with two-thirds becoming more conscious about energy usage. Half of consumers changed their grocery brands in the last four to six weeks, with trading down a clear trend: price and value were the strongest drivers here.
EU Basks in Solar Glory - UK and Germany Energy Breaks Records!Hope Small
Not what you would call the sunniest countries!Britain and Germany have broken records for generating
solar electricity in the last few weeks, according to new industry figures.
Germany generated over half its electricity demand from solar for the first time ever on 9 June, and
the UK, basking in the sunniest weather of summer during the longest days of the year, nearly doubled
its 2013 peak solar power output at the solstice weekend.
France, Italy, Denmark and other countries are also believed to have generated record amounts in
June.
Source: http://www.theguardian.com/environment/2014/jun/23/uk-and-germany-break-solar-power-records
Similar to วิกฤตขาดแคลนพลังงานของจีน กระทบเศรษฐกิจไทยอย่างไร? (8)
- 30% of the world's population has received at least one dose of a COVID-19 vaccine, and 15.5% are fully vaccinated
- Protests against health passes requiring vaccination proof to enter certain public places in France drew over 237,000 people across 150 cities for the fourth consecutive week
- U.S. states that voted for Biden in the 2020 election have the highest adult vaccination rates according to CDC data
- Thailand's economic activity indicators like mobility and equity markets fluctuated as new COVID cases rose through July and August while vaccination rates increased
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
3. 3
Global
Only 2.3% of people in low-income countries have received at least one dose
Source: Our World in Data, MOH Singapore, กระทรวงการอุดมศึกษา วิทยาศาสตร์ วิจัยและนวัตกรรม (อว.)
4. 4
New Zealand
Source: reuters
New Zealand abandoned its long-standing strategy of eliminating coronavirus amid a persistent Delta outbreak.
23. 23
China Shock
Spike in factory prices in China putting pressure on consumer prices elsewhere
Source: Bloomberg
Editor's Notes
45.6% of the world population has received at least one dose of a COVID-19 vaccine.6.31 billion doses have been administered globally, and 26.19 million are now administered each day.Only 2.3% of people in low-income countries have received at least one dose.
New Zealand drops COVID-19 elimination strategy under pressure from Delta | Reuters
https://www.reuters.com/world/asia-pacific/new-zealand-extends-auckland-lockdown-eases-some-curbs-2021-10-04/
New Zealand on Monday abandoned its long-standing strategy of eliminating coronavirus amid a persistent Delta outbreak and will instead look to live with the virus and control its spread as its vaccination rate rises.
"With this outbreak and Delta the return to zero is incredibly difficult," Prime Minister Jacinda Ardern told a news conference in a major policy shift.
"This is a change in approach we were always going to make over time. Our Delta outbreak has accelerated this transition. Vaccines will support it," she said.
Ardern said a lockdown affecting 1.7 million people in the biggest city Auckland will be scaled back in phases, with some freedoms introduced from Wednesday.
The change of direction came as the country recorded 29 new COVID-19 cases on Monday, taking the total number in the current outbreak to 1,357. Most cases are in Auckland, which has been in lockdown for nearly 50 days.
Amid mounting pressure, Ardern has said her strategy was never to have zero cases, but to aggressively stamp out the virus. She said strict lockdowns will end once 90% of the eligible population is vaccinated.
About two million New Zealanders have so far been fully vaccinated, or about 48% of the eligible population.
People in Auckland will be able to leave their homes to connect with loved ones outdoors from Wednesday, with a limit of 10 people, as well as go to beaches and parks.
Active cases: 22,724
Severe: 696
Daily new cases: 1,246
Japan slowly opens economy after ending state of emergency - Nikkei Asia
https://asia.nikkei.com/Economy/Japan-slowly-opens-economy-after-ending-state-of-emergency
Prime Minister Yoshihide Suga decided to lift the restrictions on Friday, as the number of new infections has declined and more people are vaccinated against COVID-19. Tokyo reported 200 new cases on Friday, down from a peak of more than 5,500 in August.
Japanese businesses are cautiously opening up on the first weekend since the government lifted the COVID-19 state of emergency across the country. Theme parks and shopping districts were bustling on a sunny Saturday morning,
Tokyo Disneyland and DisneySea, both of which on Friday raised the limit on visitors from 5,000 people a day to 10,000. The parks said they will also begin selling alcoholic beverages at restaurants again. But they are still operating on short hours, from 10 a.m. to 7 p.m., "for the time being,“
Tickets to both parks are sold out through early November, according to the company's website.
Universal Studios Japan in Osaka has also decided to gradually raise the daily limit on visitors from 5,000 people to 10,000 people. It will also start selling alcohol at some restaurants
The easing of restrictions has brought out travelers as well. People with suitcases in tow were seen boarding trains at Tokyo Station on Saturday (During the state of emergency the government asked people to refrain from traveling between prefectures.)
Restaurants and izakaya pubs, some of which were closed during the state of emergency because they could not serve alcohol, are preparing to reopen. The number of reservations made at some 5,300 restaurants nationwide on Sept. 30 was 68,000, 30% higher than on Sept. 27, according to TableCheck, an online reservation service.
The government will continue asking restaurants and other dining establishments to close by 8 p.m. for about another month, but those that have taken sufficient infection prevention measures can stay open until 9 p.m. Municipalities will decide whether restaurants can serve alcohol. In Tokyo, establishments will be allowed to serve alcohol until 8pm after receiving certification for their anti-COVID measures.
Power Crunch
Chinese factories in 21 provinces have been hit by power cuts in recent weeks, largely driven by a spike in coal prices that made it unprofitable for power plants to sell electricity at fixed-prices.
The impact was in the official manufacturing purchasing managers’ index, which declined to 49.6 from 50.1 in August, below the 50 median estimate in a Bloomberg survey of economists.
Beijing has scrambled to solve the problem by allowing power companies to raise prices and trying to funnel more coal to the sector. Those efforts could get production going again in many factories, but that relief might not come for weeks.
Beyond that, Beijing is signaling that it wants highly energy-intensive producers, like steel and chemical factories, to reduce output for the rest of the year, as it tries to meet environmental targets. China’s aim to reduce energy intensity, or how much power is needed to drive output, by around 3% in 2021 could drag down full-year growth by 0.3 to 0.6 percentage points, according to Ming Ming, head of fixed income research at Citic Securities Co.
Why doesn’t China import more coal?
The National Development and Reform Commission, China’s economic planning agency, said on Sept. 29 that the country, traditionally a major buyer in the world market, will increase coal imports “moderately.” But supplies have been tight, due to the global energy crunch, and prices have climbed to record levels.
China stopped buying the highly energy-efficient Newcastle grade from Australia last year amid a political dispute. That tension isn’t likely to ease as U.S. President Joe Biden seeks to rally allies, including Australia, to counter Beijing’s influence across the Indo-Pacific region.
Rising purchases from Indonesia helped make up for the missing Australian coal this year, but energy demand in Southeast Asia’s biggest economy also soared, and increases from other sources are in doubt. Mongolia, China’s resource-rich neighbor, sold less coal this year partly due to China’s strict border controls to prevent the spread of Covid-19.
Manufacturing PMI drops below 50 as energy crunch hits output
Activity in China’s vast factory sector contracted in September for the first time since the pandemic began, the latest sign of deceleration in the world’s second-largest economy.
The drop in the official manufacturing purchasing managers’ index below the 50-mark, which signals a decline in output, shows the damage a widespread electricity crunch is having on growth.
Alongside tough measures to rein in the property market, the latest developments have led economists to pare back full-year growth predictions below 8% and warn that Beijing could be willing to tolerate a sharper slowdown as it tries to reform its economic model.
When the government set its growth target at “above 6%” in March, economists saw it as modest against their own predictions of 8%-plus. Many are now rethinking their views, with major banks from Goldman Sachs Group Inc. to Nomura Holdings Ltd. downgrading their forecasts in recent weeks to as low as 7.7%.
รัฐบาลจีนกำลังพิจารณาปรับขึ้นค่าไฟฟ้าสำหรับกลุ่มโรงงานอุตสาหกรรม เพื่อแก้ปัญหาขาดแคลนพลังงานในประเทศ
การพิจารณาปรับค่าไฟฟ้าของจีนในครั้งนี้เป็นผลมาจากปัญหาขาดแคลนพลังงานอย่างรุนแรงใน 20 มณฑล ซึ่งมีขนาดเศรษฐกิจรวมกันคิดเป็นมากกว่า 66% ของ GDP ประเทศ ส่งผลกระทบเป็นลูกโซ่ให้โรงงานหลายแห่งที่เป็นซัพพลายเออร์ให้บริษัทยักษ์ใหญ่อย่าง Apple, Tesla และ Toyota ต้องหยุดเดินสายการผลิตชั่วคราว
โดยสาเหตุหลักของการขาดแคลนเกิดจากราคาถ่านหินที่เพิ่มขึ้นอย่างรวดเร็วในตลาดโลก ทำให้โรงไฟฟ้าที่ใช้ถ่านหินเป็นเชื้อเพลิงลดกำลังการผลิตเพื่อลดการขาดทุน เนื่องจากราคาขายไฟฟ้าของโรงไฟฟ้าในจีนถูกกำหนดเพดานไว้โดยรัฐบาล
โดยสาเหตุหลักของการขาดแคลนเกิดจากราคาถ่านหินที่เพิ่มขึ้นอย่างรวดเร็วในตลาดโลก ทำให้โรงไฟฟ้าที่ใช้ถ่านหินเป็นเชื้อเพลิงลดกำลังการผลิตเพื่อลดการขาดทุน เนื่องจากราคาขายไฟฟ้าของโรงไฟฟ้าในจีนถูกกำหนดเพดานไว้โดยรัฐบาล
นอกจากการปรับขึ้นค่าไฟเพื่อแก้ปัญหาแล้ว ทางการจีนยังออกมาระบุว่า จะเร่งนำเข้านำถ่านหิน เพื่อให้เป็นสต๊อกให้กับโรงไฟฟ้าในช่วงฤดูหนาวที่จะมาถึง เพื่อป้องกันการขาดแคลนไฟฟ้าในช่วงดังกล่าวที่ความต้องการใช้พลังงานจะเพิ่มสูงขึ้น
ข่าวการพิจารณาปรับขึ้นค่าไฟของทางการส่งผลให้ราคาหุ้นกลุ่มโรงไฟฟ้าจีนปรับตัวดีขึ้น โดยราคาหุ้น Huadian Power International Corp ปรับเพิ่มขึ้นถึง 5% หลังจากที่ตกลงไป 1.7% ในช่วงก่อนหน้านี้ ขณะที่ราคาหุ้นของ Datang International Power Generation ปรับตัวดีขึ้น 3.5%
Why can’t China meet its power demand?
Mainly because it’s short of coal. Coal-based producers account for more than 70% of the country’s electricity generation, but Xi’s push to reduce greenhouse gas emissions and go “carbon neutral” by 2060 has capped the growth of coal mining.
Demand for power from Chinese factories soared as orders from overseas mounted, but utilities were unable to buy enough fuel after prices surged. (Factory activity contracted in September for the first time since the start of the Covid pandemic.)
China’s coal production grew by 6% in the first eight months this year, but the power output from coal-fired generators surged 14% in the same period, leading to a decline in inventories. Certain northern areas also need to reserve enough coal for the upcoming winter heating season, which is worsening the current shortage.
Why didn’t government officials ask coal mines to dig more?
Actually they have, but it’s not that quick or easy. Any new or reopened mines also have to meet tighter environmental standards under Xi’s green push. Penalties for violations of workplace safety rules rose from fines to possible jail time in March following a spate of tragic accidents, making mining companies even more reluctant to boost production. Complicating things further is that, since China set goals to lower coal’s share of overall energy production, some financial institutions have stopped funding the business.
What would higher electricity prices mean for the economy?
- Millions of producers that relied on cheap and stable power supplies for decades wouldn’t be happy. In the short term, it might further push up factory gate inflation, which reflects the changes in prices producers charge to wholesalers. That index hit a 13-year high in August, mainly driven by higher commodity prices. The government has sought to keep such inflation pressures from dampening the economic recovery, with so far limited effect.