The Government Pension Fund Global Suffers Losses
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War in Europe, high inflation and rising interest rates were behind the poor performance of The Government Pension Fund Global. In contrast, the quick service restaurant industry in India has enjoyed a strong track record.
In this article:
- Building a budget
- Westlife Foodworld Ltd reported good after-tax net profit
- A record loss
Building a budget
The year 2022 brought major changes in the main macroeconomic indicators. Overall, inflation has become a sore spot and in an attempt to combat it, the central bank has tightened monetary policy by raising interest rates and restricting liquidity.
Entering another fiscal year, many economies face challenges as to how best to allocate their finances.
Building a budget is not easy, you should consider whether saving or spending/investing is more important. Countries face an even greater challenge as growing fears of a global recession make it difficult to assess the situation.
"In this year’s India budget, government faces a delicate balancing act between expenditure priorities and fiscal prudence.” Read an article by Santanu Sengupta, our India Economist, to know more: https://t.co/YJZvmAoOeN
— Goldman Sachs (@GoldmanSachs) January 31, 2023
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Westlife Foodworld Ltd reported good after-tax net profit
Fast food restaurants as well as the entire service market have been suffering in recent times as a result of growing economic problems, inflation and interest rates, and fears of recession. The fear of low profits was justified. But despite the current economic environment, demand for fast food restaurants has remained solid, especially in India.
Westlife Foodworld Ltd- The company, which franchises McDonald's Corp (MCD.N) in West and South India, reported a consolidated after-tax net profit for the December quarter of INR 363.5 million (US$4.43 million) vs. 208.2 million rupees a year earlier.
According to analysts, fast food restaurants saw an increase in demand in brick-and-mortar stores and takeaways during the holiday season, especially in October and December.
Such positive results are a good signal for this industry.
McDonald's India franchisee Westlife's profit soars on dine-in demand https://t.co/4tx7ER9C8O pic.twitter.com/TiqExbSgPN
— Reuters Business (@ReutersBiz) January 31, 2023
A record loss
The Government Pension Fund Global, one of the world's largest investors, reported a record loss of NOK 1.64 trillion ($164 billion) for the entire 2022 on Tuesday.
According to the general director of Norges Bank Investment Management, this situation was influenced by the economic situation, as well as by the Ukrainian state.
The $1.3 trillion fund was created in the 1990s to invest excess revenues from the Norwegian oil and gas sector. To date, the fund has invested in over 9,300 companies in 70 countries around the world.
The foundation of the fund's wealth is the huge reserves of oil and natural gas in the North Sea.
Interestingly, the fund's previous biggest loss was 633 billion crowns in 2008 due to the global financial crisis.
Norway's gigantic sovereign wealth fund loses a record $164 billion, citing 'very unusual' year https://t.co/ZotXXO9NXp
— CNBC (@CNBC) January 31, 2023
