Tag Archives: GDP

Asia will grow with 7.1% in 2014 according to the World Bank forecast

Asia industryThe World Bank (WB) estimates that this year recovering demand from industrialized countries will stimulate economic growth in the export-dependent countries in Asia. According to the international financial institution developing Asian economies will grow by an average 7.1% this year. In practice, the bank forecast remains that in 2013 China will increase its gross domestic product (GDP) of 7.6% instead of 7.7%, as expected by the World Bank in 2013. According to the latest research by Finweek Journal, the report by international lenders indicates that the process of reducing the size of asset purchases by the US Federal Reserve, which began this year, which should after a certain time to raise the yield on US Treasuries, it has caused great losses Asian markets.
“The strong global economy growth this year will help the enlargement of the region at a relatively steady pace until he adjusts to tighter global financial conditions”, said Vice President of the World Bank for the East Asia Axel van Trotsenburg.

Ireland got more measures for expenses decrease in budget 2014

IrelandDublin budgeted for next year’s tax increase and reduce public expenditure to total 2.5 billion EUR against the preparation of the country out of the bailout program. Among the most controversial measures to reduce unemployment benefits for young people up to 25 years, reducing allowances and health benefits for retirees, and increase the excise tax on alcohol and cigarettes. It is also envisaged tax deposit rates be increased to 41% from 33 %, while the fee for prescriptions to be 2.5 EUR from 1.5 EUR. Will be eliminated and one-off payment of 850 EUR to cover funeral expenses for deceased relatives financially troubled families. Businesses will be affected by the new tax on banks and reduce the state subsidy for paid sick leave to employees, but provides for the abolition of tax on airlines and the adoption of a package of incentives for the construction sector. If the draft is adopted in its current form, it would mean that since 2008 the country has implemented austerity measures worth 31 billion EUR. The amount is equivalent to almost a fifth of Ireland’s economy.
“The purpose of this budget is to continue the progress we have made to strengthen policies for economic growth”, said Finance Minister Michael Nuun. “I know there are some opinions that consolidation should continue, but those people have already made enough sacrifices”, he added.

Bulgaria with the second lowest debt/GDP ratio in EU for Q4 2011

Bulgaria photoBulgaria was second in the European Union’s lowest government debt in the third quarter of last year, according to the European statistical office Eurostat. For the period July-September 2011 our government debt was 15% of gross domestic product (GDP). Estonia is ahead of us only by 6.1%, and after us is Luxembourg with 18.5%. In the third quarter of 2011, Greece was the country with the highest debt – 159.1% of GDP. It is followed by Italy (119.6%), Portugal (110.1%) and Ireland (104.9%). Top ten is completed by Belgium, France, Britain, Hungary, Germany and Austria. Bulgaria is among the countries most severely reduced the public debt in the third quarter of last year compared to the same period of 2010 according to Eurostat, Bulgaria’s public debt has registered an annual decrease of 0.9 percentage points. Only Luxembourg and Sweden have reduced public debt over rate. The most significant annual increase in debt for the period was registered in Greece (20.3 pp), Portugal (18.9 pp) and Ireland (16.5 percentage points). In the third quarter of last year compared with the second highest increase in debt was recorded in Hungary (4.8 percentage points), followed by Greece (4.4 percentage points) and Portugal (3.6 percentage points), and the a decrease in Italy (1.6 percentage points), Malta (1.6 percentage points) and Romania (1 pp). In the third quarter of last year, the average amount of debt in the euro area was 87.4 percent of GDP, almost unchanged from the previous three months. In comparison with the amount of debt from the third quarter of 2010, however, government debt in the euro area rose by over 4 per cent.

Spain is in front of recession

EurozoneIncreasingly likely that the Spanish economy to slip back into recession at the end of the year as its weakest growth is now threatened by the slowdown in the global economy.
“Over the last three months increased economic uncertainty regarding the outlook for the global economy, which impacted negatively on the expected recovery of the Spanish economy”, said Institute the second largest Spanish bank in its economic review. So far, though weak (0.4 per cent in the first quarter and 0.2 percent in the second), the growth of Spanish economy remained in the green zone thanks to exports, amid weak household consumption in the context of record high unemployment. This picture, however, is threatened by the economic slowdown worldwide.
“The contribution of external demand continues to explain that the pace of growth is not negative, but the data suggest stagnation in the third quarter or in other words zero growth, experts predict.”
The Spanish Central Bank also provides zero growth in the third quarter. The first official details will be announced on 11th November. For the fourth quarter institute expects negative growth, keeping the signs in October.

The new crisis is coming, warned Mark Mobius

Mark MobiusThe investor Mark Mobius believes that the horizon a new financial crisis as reasons for the just-past are not allowed. The total value of derivative instruments in the world than global gross domestic product (GDP) and this portend volatility and crises on the stock, said executive director of Templeton Asset Management told reporters today in Tokyo.
“The the banks larger now? Yes. The market for derivatives is it regulated? No. The market for derivatives continues to grow there? Yes, “said Mobius. One reason for the global financial crisis 3 years ago was the widespread use of derivative instruments tied to the U.S. mortgage market.
The dervivativite led to the bankruptcy of Lehman Brothers in September 2008. For the 6 months after the collapse of Lehman MSCI World index of Morgan Stanley Capital International declined by 38%. The ensuing credit crunch forced central banks around the world to help the financial system through the injection of liquidity to encourage lending.

Sales in the end of the session dropped the US indexes

Wall streetThe sudden sales of shares at the end of the session submerged state indexes and cut off their Series winning the previous three days. The session began with increases in stock prices supported by good data on consumer spending and housing market in the country. They showed that consumer spending in the U.S. rose 0.7 percent on a monthly basis in February after 0.3 percent growth recorded in January. Since the consumer spending are a source of about 70% of gross domestic product (GDP) of the country, their increase during the first two months of this year suggests that the U.S. economy continued to grow. At the end of last week’s final government data showed that U.S. GDP has increased more than expected to 3.1 percent in the last quarter of 2010, supported by the strongest consumer spending over the past four years. The other economic data showed that consumers’ incomes rose by 0.3 percent on a monthly basis in February, which is their fifth consecutive monthly increase. Shortly after the start of the session it became clear that the projected sales of homes have increased unexpectedly by 2.1 percent in February when the economists expected a decline of 0.5 percent on a monthly basis. They are a good guide to future activity of the real estate market in the country. Despite the good economic data Dow Jones IA fell 0.2 percent to 12 197.88 points. The broader index S & P 500 slid 0.3 percent to 1 310.19 points, the largest declines were in energy and mining companies because of the fall in oil and metals.

Japanese economy shrank more than expected

Japanese economyThe Japanese economy shrank more than initially announced in the last quarter of 2010, after the data for capital expenditures were revised downward in the reflection of the limited domestic demand. The analysts are optimistic, indicating that exports may have returned to growth the Japanese economy this year. The government and the Bank of Japan predicted recently that in 2011 the country’s economy will emerge from the impasse at the end of 2010. The threat of high crude oil prices and a misunderstanding between the ruling party and opposition are considered as the biggest risks to economic recovery. Confirmation of this data became the wholesale price in Japan, which increased the most rapid annual rate since November 2008 because of price rises of raw materials. They rose by 1.7% yoy in February, which exceeded market expectations. The Gross Domestic Product (GDP) of Japan declined by 0.3 percent compared to third quarter of 2010, coinciding with previous statistical estimates and market expectations. If we take the equivalent of annual data, however, the country’s economy declined by 1.3 per cent, which is more than previously announced drop of 1.1 per cent.

Australian economy is still staying strong

AustraliaThe Australian economy remains strong and has accelerated its pace of growth in the last quarter of 2010, just before severe natural disasters that struck the country early this year. The Gross Domestic Product (GDP) of Australia increased by 0.7 percent on a quarterly basis and thus the economy switches to a higher speed after the third quarter marked a minimum growth of 0.1 per cent. The data of Statistical Office in Sydney surpassed market expectations for GDP growth of 0.6 percent. Initial estimates for the third quarter showed growth of 0.2 percent. Compared to the last quarter of 2009 GDP increased by 2.7 per cent against an expected growth rate of 2,6 per cent. The consumption expenditure of households increased by 0.4 percent during the quarter and 2.8 percent annually. Investment in housing also increased by 0,4 percent. The stability of the Australian economy led to the discovery of 330 thousand new jobs in the country last year, while unemployment fell to 5%. Unemployment rates in other developed economies like the U.S. and eurozone, are nearly twice as high. The last quarter of last year was the eighth in a row, within which GDP grows but at the beginning of this year North-East Australia hit by severe floods seriously and cyclones, which are expected to slow economic growth.

GDP and Unemployment datas may hurt Wall Street this week

UnemploymentThe financial turmoil in the U.S. can continue in this week, which will be shorter because of the celebration of Thanksgiving on Thursday. A number of key economic data out on Tuesday and Wednesday that will give direction of trade. They will shed light on the condition of the property market, consumer income and spending, the number of new applications for unemployment and growth and the overall economy. Wall Street will keep an eye out and plan to stimulate the economy the Federal Reserve and the development of the debt crisis in Ireland, which officially announced that it would require financial assistance to rescue the banking sector and patching up the state budget. Some economists are cautiously optimistic that the decision of the Federal Reserve to buy government securities (GS) for 600 billion dollars will stimulate economic growth, says CNN. Plan wake negative reactions among analysts who see yet another cash injection strong prerequisite for inflation of asset prices and increasing inflation. On Monday, do not expect major U.S. economic data. On Tuesday, before opening exchanges, the Government will publish its second estimate of gross domestic product in the third quarter. In October, preliminary data showed economic growth of 2% equated to annualized basis. Analysts expect it to be revised upwards to 2.3 per cent.

Singapore signed 15,5% growing of GDP for the first quarter

Singapore citySingapore’s economy grew by 15.5 percent in the first quarter over the same period of 2009 due to growing activity in the factory, financial and tourism sector in the country. The increase in gross domestic product (GDP) was greater than expected and surpassed the estimates of the Ministry of Commerce and Industry of Singapore, cited by AP. Exports contribute most to impressive GDP growth of 38.6 percent in the first quarter of this year, according to an annual equivalent basis data. This appears to be the strongest pace of GDP growth since statistics began to be kept in 1975. Factory sector, which generates a quarter of Singapore’s economy, reported growth of 32.9 percent on an annual basis, the services sector grew by 10.9 per cent and construction sector – by 13.7 per cent. The government expects the Singapore economy of the country surged by 9 percent this year, a exports to increase by between 15% and 17% yoy. Central Bank of Singapore announced in April that will allow the currency to appreciate, and thus join Malaysia in the withdrawal of its cash incentives for the economy.