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Showing posts from March, 2024

"Unlocking Growth: The Ripple Effect of Declining Interest Rates on Cyclical Sectors"(Pakistan)

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  Declining interest rates can have several impacts on cyclical sectors of an economy: Increased Borrowing and Investment : Lower interest rates typically lead to cheaper borrowing costs for businesses. Cyclical sectors, which are sensitive to changes in economic conditions, often rely heavily on borrowing to fund expansion or investment in new projects. With lower interest rates, these sectors may see an increase in borrowing activity, leading to higher investment levels. Boost in Consumer Spending : Lower interest rates can also stimulate consumer spending. This is because consumers may have lower borrowing costs for mortgages, car loans, and other forms of credit. Cyclical sectors such as consumer discretionary goods and services may benefit from increased consumer spending as a result of lower interest rates. Housing Sector : The housing sector is highly cyclical and sensitive to interest rate changes. Declining interest rates can lead to lower mortgage rates, making home purchase

Why Chemical Sector is Not Performing Across the Globe And in Pakistan

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  In 2023, the downstream chemical market grappled with uncertain demand in many areas. Rising production and transportation costs and increased pressure to lower carbon footprint decreased profitability and public and government pressures to produce more recyclable products, saw chemical companies shift their focus to more sustainable practices.    But will this uncertainty persist into 2024, and is there a positive outlook? We've analyzed data and opinions from key industry reports to present the strongest predictions for 2024 for the chemicals industry. 2023 was a difficult time for the chemicals industry, particularly in Europe. The conflict in Ukraine, higher resulting energy prices, and high inflation dampened growth in the region and saw Europe import more chemicals than it exports, for the first time. The conflict has, in turn, affected global chemical supplies; Ukraine is the world's largest supplier of noble gases and is Europe's biggest ammonia producer for ferti