World economy could still worsen: IMF

The global economy could still worsen & consumer demand is unlikely to recover as strongly as it has in the past, a senior IMF official said tuesday. The International Monetary Fund is concerned about "downside risks" to the economy, said the fund's first deputy managing director John Lipsky. "This is absolutely not the time for complacency" he told reporters here. Japan's recovery prospects hinge on the health of foreign markets given the country's heavy dependence on exports, he said. Emerging nations would be at the vanguard of a recovery from the current "Great Recession" followed by advanced economics, which should return to positive growth in 2010, Lipsky said. While that would be good news for japan, the fallout from the credit crounch means that people may not be rushing back to the shops as quickly as they did during previous recoveries, he said. "Consumer demand in some of the advanced economics such as the US may not recover as strongly as it did in past" Lipsky said. The IMF last month projected the global economy would shrink 1.3 percent in 2009 but grow 1.9 percent in 2010.
---AFP

Thai auto sales fall 27.4pc

Thai vehicle sales in april fell for an 11th consecutive month, industry figures showed tuesday, plummeting 27.4 percent year-on-year after further domestic political upheaval. Toyota Motor Thailand, which complies the industrywide figures, said domestic vehicle fell to 39713 units. Sales of passenger cars rose 4.2% year on year, but the commercial segment continued to suffer for a 12th month running & fell by 39.7%. "It's the lowest drop in four months but it fell becasuse of the economic slowdown & low consumer confidence due to the political incidents in mid-april" Toyota Motor Thailand said in its monthly release. Anti-government protesters loyal to fugitive former premier Thaksin Shinawatra stormed regional summit on the coast of Thailand on april 11, forcing its closure before further demonstrations erupted in Bangkok. The latest round of political unrest only ended after a state of emergency was called across the capital & rioting protesters were threatened with a military crackdown.
---AFP

Oil above $59

Oil prices rose above 59 dollars in asian trade tuesday on hopes for a relatively quick rebound in the US economy & the escalating unrest in african crude producer Nigeria. NewYork's main futures contract, light sweet crude for delivery in june, reversed earlier losses & was trading 62 cents higher at 59.65 dollars per barrel in the afternoon. Brent North Sea crude foq july was up 67 cents to 59.14. US stocks soared monday after better than expected earnings from home improuement retailer Lowe's helped reinforce hopes for a recovery in tahe US. A strong US economy is a key growth engine for the world because it is a major export market for many countries. "Oil seems to stay resilent in spite of ample suply as it contries to focus on the prospects of economic recovery & the rising risk of commodity price inflation" said Phil Flynn at Alaron Trading. A rebound from the global downturn will boost oil demand & lift prices higher.
---AFP