Economy rising 10.7%, retailing among major gainers
24 Mar '06
4 min read
The recent slide in factory jobs reflects the emphasis employers have put on boosting productivity in the face of the squeeze on profit from rising input costs (notably energy) and lower prices for their exports as a result of the appreciating exchange rate.
The current account surplus rose to a quarterly record of $13.3 billion. The increase was driven by two developments that may continue for some time.
First was a $3 billion jump in energy exports, lifting them over 50% ahead of a year ago, as the volume of exports has begun to respond to soaring prices.
Second was a drop in interest payments on foreign debt, as both government and corporations have used part of their surpluses to pay down debt while the rising dollar has reduced the cost of servicing this debt.
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