Argentina’s banks posted combined profits of 1.8 billion pesos ($584.7 million in the first half of 2006, Banco Central de la Republica Argentina reported yesterday. Private banks accounted for 1.1 billion pesos ($357.2 million) of this. Profits for the first half of this year were greater than the 1.8 billion peso ($581.4 million) profit for the full year 2005. The banking sector has become on of the most profitable sectors of the Argentine economy, after registering losses of 16.5 billion pesos in 2002, 5.3 billion pesos in 2003 and 900 million pesos in 2004.
Kazakhstan’s finance minister Natalia Korzhova said the country’s national debt decreased by 231 billion tenge ($1.9 billion) to 937 billion tenge during the first half of the year. Government debt accounted for 529 billion tenge at the end of June, marking a decrease of 7 billion tenge. Private sector debt declined by 5 billion tenge to 74 billion tenge. The debt reduction is due to record oil prices and strong export revenues.
Bank Negara Malaysia's Governor Zeti Akhtar Aziz said he expects Malaysia's inflation to have peaked. The governor said that inflation is expected to decelerate in the latter part of the year. Bank Negara Malaysia decided to keep its key interest rate unchanged at 3.5% last month, in view of an expected easing in inflation.
The World Bank announced in its quarterly review that it expects the Chinese economy to expand by 10.4% in 2006 and 9.3% in 2007. It said it does not perceive any risk of overheating, despite continued strong economic growth. China's GDP expanded 11.3% in the second quarter of 2006. The Bank expects production capacity to expand in line with demand, moderate inflation and a surplus in the current account. The steady rise in investment does raise some concern and moderation would be desirable, the Bank added. It expects a marginal slowdown in exports and fixed asset investment in the second half of 2006.