German public deficit soars
WIESBADEN, Germany: The German public deficit ballooned to 58 billion euros (US$56.8 billion) in the first six months of the current year, 20 billion euros more than in the corresponding period a year earlier, the Federal Statistics Office said on Thursday.
In the period from January to June, the federal, regional and municipal authorities spent a total 490.1 billion euros, 2.2 percent more than in the corresponding period a year earlier, the office said in a statement.
At the same time, revenues fell by 2.1 percent to 432.1 billion euros.
The office did not give any indication about the ratio of the first-half public deficit to gross domestic product (GDP), a key yardstick for gauging the state of a country's public finances.
But the Finance Ministry in Berlin had already predicted on Wednesday that the German public deficit ratio was moving in the wrong direction and was likely to reach 2.9 percent for the whole of 2002, way above the 2.5 percent previously forecast and dangerously close to the 3.0-percent limit laid down in the European Stability and Growth Pact.
Experts have estimated that even that new estimate could be too optimistic given the length and depth of the current economic slump and the huge cost of the damage wreaked by the recent floods. Many observers believe the German deficit could exceed the 3.0-percent level this year. -- AFP
Switzerland continues gold sales
ZURICH: Switzerland's central bank said Thursday it would sell 283 tons of gold on world markets over the next year under its two year-old plan to liquidate part of its gold reserves.
Since May 2000, the Swiss National Bank has gradually sold about 603 out of the 1,300 tons it plans to sell after legislation was changed to remove the obligation to back the Swiss currency with gold.
The gold sales, which are coordinated with 14 other European central banks to avoid flooding the market, have so far brought in 9.1 billion Swiss francs (6.2 billion euros), the National Bank said in a statement.
But Swiss authorities have been unable to decide on how to spend the money and the issue has sparked a lively political debate.
In a referendum on Sunday, Swiss voters rejected both proposals before them, either to split the earnings from the gold revenue equally between cantonal (regional) authority budgets, financing old-age pensions and a humanitarian foundation, or to spend the gold revenues entirely on financing pensions. -- AFP
HK's total exports up 5.7%
HONG KONG: Hong Kong's total exports of goods in August rose 5.7 percent from last year to HK$141.2 billion (US$18.1 billion) after a 9.8 percent increase the previous month, the government said Thursday.
Re-exports for the month rose 7.9 percent to HK$129.1 billion, while domestic exports fell 12.9 percent to HK$12.1 billion, the Census and Statistics Department said.
Imports rose 5.8 percent to HK$144.3 billion after a year-on- year increase of 7.3 percent in July.
A government spokesman noted that merchandise exports continued to grow in August but "at a somewhat less robust pace than in June and July."
He said export growth varied considerably among different regions.
The spokesman said intra-regional trade continued to drive Hong Kong's export growth, with exports to the region as a whole recording a double-digit increase in August for the third month in a row.
Growth in exports to the mainland of China, the Republic of Korea and Malaysia were particularly robust, but U.S. shipments "moderated considerably" after the distinct pick-up in June and July, he said.
Also, exports to the European markets as a whole were still weak in August," the spokesman said.
For the eight months to August, total exports rose 0.9 percent year-on-year, with re-exports up 2.9 percent, domestic exports down 15.9 percent and imports down 1.4 percent. -- AFP
Vietnam's trade deficit hits $1.67b
HANOI: Vietnam's trade deficit hit US$1.675 billion in the first nine months of this year, a sharp increase on the same period last year, the general statistics department said Thursday.
While exports during the period rose 2.8 percent to $11.858 billion, imports increased by 16.4 percent to $13.533 billion.
For the month of September alone Vietnam's trade deficit reached $110 million, said the department.
Among Vietnam's major export products are crude oil, textiles, rice, seafood and electronics. Steel, automobiles, chemicals, pesticides and fuel are among its major imports.
Vietnam's trade deficit last year was $900 million compared with $892 million in 2000 and just $113 million in 1999.
The communist country usually publishes its trade figures before the end of the month, and they are frequently revised at a later date. -- AFP