Asia Pacific News
LAST UPDATE: June 11, 2025
Top IMF Official to Visit Sri Lanka
Dr. Gita Gopinath, First Deputy Managing Director of the IMF, will visit Sri Lanka on June 15–16, 2025.
Insight
This visit marks the first by a sitting IMF FDMD since 2005 and comes at a pivotal mid-point in Sri Lanka’s IMF-supported reform program. She will attend a high-level forum focused on debt restructuring, governance, and economic recovery, signaling sustained IMF commitment. The timing suggests an effort to reinforce reform momentum and restore investor confidence. Engagement with senior government and financial authorities indicates strategic support to ensure Sri Lanka remains on the path to macroeconomic stability.
BOJ’s Ueda Says Inflation Is Still Below Target, Weakening Yen
BOJ Governor Kazuo Ueda stated that underlying inflation remains below the 2% target, contributing to a weaker yen.
Insight
Ueda’s cautious stance reflects that core inflation hasn’t shown sufficient momentum for policy tightening, keeping real interest rates low. The remark triggered immediate currency market reactions, with the yen depreciating further. The BOJ is deliberately balancing the need to sustain inflation against the risk of stifling economic growth. This positioning underscores Japan’s continued lag behind global peers in normalization. It also signals that any shift toward tighter policy will require stronger domestic inflation and wage dynamics.
Just managing’: US tariffs leave Indian shrimp farmers struggling
Indian shrimp farmers are severely affected by U.S. tariffs (10–26%), which have caused demand to dry up, forcing exports to cut prices by around 10%.
Insight
The tariff impact emphasizes how trade policies can quickly destabilize vulnerable agricultural sectors. Farmers in regions like Andhra Pradesh report dramatic income drops—from ~$350 to under $200 monthly. This situation highlights broader systemic fragilities in export-dependent value chains. Comparisons with Ecuador, receiving lower tariffs, reveal competitive imbalances. The crisis is prompting calls for government intervention to stabilize the industry before more producers exit.
China’s vice president visits Spain as mutual courtship blossoms
Chinese VP Han Zheng began a four-day visit to Spain, aimed at deepening economic, technological, and political cooperation.
Insight
Han’s visit builds on Spanish PM Sánchez’s recent trip to Beijing, showing reciprocal diplomacy despite broader trade tensions. Spain is positioning itself as an EU–China bridge, securing Chinese investment in EVs, batteries, and hydrogen projects—evidenced by Stellantis‑CATL EV plant plans. While joint efforts are growing, unresolved issues—such as anti-dumping pork probes—persist. The trip also reflects China’s broader outreach to Europe through bilateral high-level engagement. The timing reinforces Madrid’s bid to attract Chinese FDI amid slowing domestic demand.
