Home / World Economy (page 6)

World Economy

Erdogan’s waning patience: Four questions for Turkey’s central bank

Turkey’s central bank has begun setting the stage for an interest rate cut long sought by President Tayyip Erdogan, although most analysts don’t think it will pull the trigger this week after inflation jumped and the lira took a slide. The bank has kept its benchmark rate at 19% since March, when Erdogan installed Sahap Kavcioglu as its latest governor. That makes it one of the highest policy rates in the world – although so too is Turkey’s inflation rate, which touched 19.25% last month. Ahead of a monetary policy ...

Read More »

What China developer Evergrande’s debt crunch means for U.S. investors: Ed Yardeni

A debt crunch involving China’s second largest properly developer has caught investors’ attention in the past week. Evergrande, the Shenzhen-based company, is facing a default on its debt burden of roughly $300 billion. The crisis has echoes to the Lehman Brothers bankruptcy, which marked its 13-year anniversary last week, a development that at the time sent shockwaves through global markets. Ed Yardeni, president of Yardeni Research, says it’s unlikely Evergrande will have a fallout quite as severe as the Lehman bankruptcy when the global economy and credit markets collapsed. Instead, ...

Read More »

Faster GCC growth likely next year as oil production set to rise

As we enter the final quarter of 2021, it is a good time to look back on how the region’s economies have performed so far compared with our expectations at the start of the year and also to recalibrate our outlook for next year. The UAE has yet to release official gross domestic product statistics for the first and second quarters of this year, but the PMI survey data suggests that the non-oil sectors have continued their gradual recovery following last year’s Covid-related contraction. Companies have generally reported increased activity ...

Read More »

Large European Banks’ Earnings Recovery Continues

Major European banks’ 3Q21 results are likely to show earnings continuing to recover, although more slowly than in 1H21, Fitch Ratings says. We expect most of the 20 large banks covered in our latest Quarterly Credit Tracker to report 3Q21 profits above pre-pandemic levels, helped by loan impairment charges (LICs) remaining low after significant front-loading in 2020. However, LICs could increase later this year or in 2022 as borrower support schemes expire. Most of the banks have reported strong earnings this year, supported by dynamic capital markets and a recovery ...

Read More »

Building a resilient economy

Amidst the hopes of a V-shaped recovery of the Indian economy, the National Statistical Office (NSO) had recently estimated that India’s economic growth has surged to 20.1% in the April-June quarter, despite a devastating second wave of COVID-19, while the gross domestic product (GDP) had contracted by 24.4% in the April-June quarter of 2020-21. Supporting these estimates, in its recently launched Trade and Development Report 2021, UNCTAD has estimated global growth to hit 5.3% in 2021 and growth in India to hit 7.2%. Growth prospects According to the report, India ...

Read More »

Evergrande: Embattled China property giant sparks economy fears

Chinese company Evergrande has started to repay investors in its wealth management business with property, as the world’s most indebted real estate developer faces a key test this week. Major banks have reportedly been told that they won’t receive interest payments on loans that are due Monday, while interest payments of $84m (£61m) on the firm’s bonds are also due on Thursday. The company’s shares fell by more than 10% in Hong Kong trade on Monday. The property giant’s deepening debt problems have triggered fears over the impact its potential ...

Read More »

World leaders return to U.N. with focus on pandemic, climate

World leaders are returning to the United Nations in New York this week with a focus on boosting efforts to fight both climate change and the COVID-19 pandemic, which last year forced them to send video statements for the annual gathering. As the coronavirus still rages amid an inequitable vaccine rollout, about a third of the 193 U.N. states are planning to again send videos, but presidents, prime ministers and foreign ministers for the remainder are due to travel to the United States. The United States tried to dissuade leaders ...

Read More »

Greek current account turn to surplus in July, tourism revenues up

Greece’s current account turned to surplus in July compared to the same month last year on the back of a significant rise in tourism revenues, the Bank of Greece said on Monday. Central bank data showed the surplus at 0.538 billion euros ($630 million) from a deficit of 0.797 billion euros in July 2020. The Bank of Greece said the surplus of the current account gap was mainly due to an improvement in the services balance and tourism revenues in particular. In the first seven months of 2021, Greece’s current ...

Read More »

How emerging economies can overcome the private sector’s risk perception

There is an ever-increasing urgency to address the barriers limiting private sector capital flowing at scale to achieve the sizeable UN Sustainable Development Goals (SDGs) in developing and emerging economies. One such barrier is the risk perception associated with investing in emerging markets, which has historically been addressed on a project-by-project basis. This remains one of the longstanding, severely limiting opportunities for a sustainable post-COVID economic recovery. The approach to managing and mitigating risks has been focused on transaction specific solutions, typically financial risk mitigation products and measures such as ...

Read More »

European businesses yearn for Chinese market despite COVID-19 pandemic

Powerful consumption driven by massive middle class, a sustainable and inclusive business climate, innovative dynamics, economic resilience, booming imports and exports trade … These are reasons given by European business leaders for their confidence in the Chinese market and expanding investment in the promising country. GIGANTIC CONSUMPTION During the COVID-19 pandemic, luxury brand Rapport London shifted its focus to digital economy, seeing a strong double-digit percentage growth in its online business across the world, especially in the booming online market of China. “The Chinese market is set to become the ...

Read More »

China’s Chongqing posts foreign trade growth in Jan-August

The foreign trade of Southwest China’s Chongqing municipality totaled 507.68 billion yuan (about $78.53 billion) from January to August, up 29.4 percent year-on-year, customs data showed. Chongqing’s exports surged 28.9 percent to 320.08 billion yuan during the period, while its imports increased to 187.6 billion yuan, up 30.1 percent year-on -year. In August alone, the city’s foreign trade value came in at 65.16 billion yuan, up 16 percent year-on-year. ASEAN, the European Union and the United States remained Chongqing’s major trading partners, with their import and export values respectively reaching ...

Read More »

Amid COVID surge, states that cut benefits still see no hiring boost

The August slowdown in U.S. job creation hit harder in states that pulled the plug early on enhanced federal unemployment benefits, places where an intense summertime surge of coronavirus cases may have held back the hoped-for job growth. New state-level data released Friday by the Bureau of Labor Statistics showed the group of mostly Republican led states that dropped a $300 weekly unemployment benefit over the summer added jobs in August at less than half the pace of states that retained the benefits. Elected leaders in those states argued the ...

Read More »

Warnings of economic catastrophe come as Congress prepares to debate debt ceiling

President Joe Biden’s top aides and local officials nationwide pleaded with U.S. lawmakers on Friday to resolve a government debt showdown that they warned could spark an economic crisis. Congress plans next week to consider legislation that would avoid a default ahead of an October deadline, when the Treasury Department estimates it will no longer be able to pay all of the country’s bills. The White House warned on Friday that a failure by the U.S. Congress to extend the debt limit could plunge the economy into a recession and ...

Read More »

Sentiment remains shaky amongst US consumers

At least it didn’t get worse… The September University of Michigan consumer sentiment report has posted an underwhelming rise to 71.0 from 70.3, below the consensus 72.0 forecast. A combination of Covid resurgence and anxiety about the rising cost of living were responsible for the seventh largest ever drop in sentiment in August and the hope was that this was an outsized reaction that would be at least partially reversed. Unfortunately, all we got was a 0.7 point increase with confidence remaining weaker than in the depths of the lockdowns ...

Read More »

UN faces $100 trln shortfall in fight against climate change, inequality – report

Global goals tackling poverty, inequality, injustice and climate change face a $100 trillion funding shortfall and are likely to be missed unless 10% of global economic output is directed to the U.N. targets every year to 2030, a report on Friday said. The U.N.’s Sustainable Development Goals set targets on everything from the environment to health and equality and have the support of all member states, yet the supply of finance from governments, investors, banks and companies to help meet them has consistently fallen short. Hampered by the impact of ...

Read More »

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping