Home / World Economy / World Economy News (page 2)

World Economy News

Fed remains cautious on cuts even as data improves

Data this week offered the U.S. Federal Reserve good news on two fronts but policymakers haven’t openly shifted views yet about the timing of rate cuts investors are convinced will start this year. Comments from Fed officials including the vice chair of the rate-setting Federal Open Market Committee, New York Fed President John Williams, acknowledged the positive turn this week when U.S. government agencies reported that consumer prices rose more slowly than expected in April, and that retail spending had not increased at all during the month in a possible ...

Read More »

China April new home prices fall at fastest monthly pace in over nine years

China’s new home prices fell at the fastest monthly pace in over nine years in April, as intensified efforts by authorities to prop up the ailing property sector show few signs of paying off. Prices were down 0.6% month-on-month in April, deeper than a 0.3% fall in March, the fastest pace since November 2014, according to Reuters calculations based on National Bureau of Statistics (NBS) data released on Friday.Prices have fallen for a tenth consecutive month, the data showed. In annual terms, new home prices fell at the deepest pace ...

Read More »

EBRD reveals how sanctions on Russia has impacted its economy

The European Bank for Reconstruction and Development (EBRD) has unveiled surprising growth forecasts for Russia as it examines the impact of sanctions on the country. The EBRD, which is holding its annual meeting in Yerevan, Armenia, has published its new growth forecasts for the regions it covers and highlighted how sanctions on Russia have impacted its economy. “I think it was unrealistic to expect that sanctions against Russia would lead to a deep economic and financial crisis, as many had hoped,” Beata Javorcik, chief economist of the EBRD, told AFP. ...

Read More »

As US hikes China tariffs, imports soar from China-reliant Vietnam

As the United States intensifies efforts to reduce trade with China by hiking tariffs, it has greatly boosted imports from Vietnam, which relies on Chinese input for much of its exports, data show. The surge in the China-Vietnam-U.S. trade has vastly widened trade imbalances, with the Southeast Asian country last year posting a surplus with Washington close to $105 billion- 2.5 times bigger thanin 2018 when the Trump administration first put heavy tariffs on Chinese goods. Vietnam now has the fourth-highest trade surplus with the United States, lower only than ...

Read More »

Rise in part-time work threatens already sluggish productivity growth in Germany

Record high employment does not translate into higher output German unemployment stood at 5.9% in April, higher than the 5% recorded both before the outbreak of the Covid-19 pandemic and the start of the war in Ukraine, but still low by historical standards. At the same time, employment in the fourth quarter of 2023 was almost back to pre-pandemic levels. Despite a generally strong labour market, however, there is collective concern about a potential loss of prosperity and declining competitiveness in Germany. Looking at economic output per employee in recent ...

Read More »

Economy scars voters in run-up to EU election

The northern French port of Dunkirk, riding an industrial mini-boom thanks to a state-backed investment push, is a showcase for President Emmanuel Macron’s belief that fighting unemployment is the best way to curb support for the far-right. But the economic potential of two new EV “gigafactories” will not stop locals like Killiams Pierron backing Marine Le Pen’s nationalists in June elections to the European Parliament, after a surge in prices for food, heating and other essentials. “Bread, cheese, butter, it’s all gone up,” construction labourer Pierron told Reuters as he ...

Read More »

EU economy greenhouse gas emissions: -4.0% in Q4 2023

In the fourth quarter of 2023, EU economy greenhouse gas emissions were estimated at 897 million tonnes of CO2-equivalents (CO2-eq), a 4.0% decrease compared with the same quarter of 2022 (935 million tonnes of CO2-eq). The EU’s gross domestic product (GDP) remained stable, registering just a small increase (0.2% in the fourth quarter of 2023, compared with the same quarter of 2022). This information comes from data on quarterly estimates for greenhouse gas emissions by economic activity published by Eurostat today. Quarterly estimates of greenhouse gas emissions complement quarterly socio-economic ...

Read More »

China goes on a $1 trln apartment-buying spree

China’s national team is going house hunting. State-owned enterprises and local governments are answering Beijing’s call to purchase the country’s vast swathe of unsold apartments. That should help put a floor on plunging property prices. Local authorities in Hangzhou, home to corporate titans Alibaba 9988.HK and Geely Automobile 0175.HK, kicked off the bold initiative by announcing they will buy up to 100,000 square feet of apartments in Linan district at market prices and rent them out at affordable rates. Other regions are set to follow: the ruling Politburo in April ...

Read More »

Australian and US economies – a comparison

Australia’s growth profile is weaker The obvious starting point for a comparison like this is growth, and here Australia does stand out with a much weaker growth profile following the post-pandemic surge in activity. GDP has slowed consistently since the fourth quarter of 2022, when quarter-on-quarter growth topped 0.8%. GDP growth has now slowed to 0.2% QoQ, with most of the slowdown coming from household spending. The contrast with the US is stark. Although GDP slowed to just 0.4% QoQ in the first quarter, that is still double that of ...

Read More »

BoE’s Greene says she wants more evidence of waning inflation persistence

The Bank of England should wait for more conclusive evidence that stronginflation pressures in Britain are becoming less stubborn beforeit moves to cut interest rates, BoE policymaker Megan Greene said on Thursday. Greene said in a speech that there was more uncertainty about the degree to which the persistence of inflation – chiefly in the country’s tight labour market – was easing than about how the BoE’s high interest rates were weighing on the economy. “In considering for how long we must retain our restrictive stance before policy should be ...

Read More »

ECB’s rates framework may discourage money-market lending – Nagel

The European Central Bank’s new interest rates framework may discourage money-market lending because banks will find it cheaper to tap the ECB, policymaker Joachim Nagel said on Thursday. The ECB wants to wean banks off free cash after 10 years of money printing but it is trying to do so gently enough not to upset the financial system. Under a new framework unveiled in March, the ECB set a 15 basis-point spread between the interest rate that banks earn when they deposit money at the central bank and the one ...

Read More »

China’s investment in UAE rose 16% to $1.3bn in 2023 as ties strengthen

Chinese investments in the UAE increased by more than 16 per cent annually in 2023 to $1.3 billion, as economic ties between the countries strengthened, a senior diplomat said. The amount accounted for 60 per cent of the Asian nation’s total investment in Arab countries, Zhang Yiming, China’s ambassador to the UAE, told the China-Arab Entrepreneurs Summit in Abu Dhabi on Wednesday. The UAE boosted its investments in China by 120 per cent last year, accounting for “90 per cent of Arab countries’ investments in China”, Mr Zhang said. The ...

Read More »

US’ trade bullying exposes lack of confidence: Chinese FM

Chinese Foreign Minister Wang Yi on Wednesday sharply criticized the US’ latest move to significantly hike tariffs on an array of Chinese goods, including electric vehicles (EVs). He said that the US’ relentless crackdown measures amounted to typical bullying, exposed Washington’s lack of confidence rather than strength, and will not stop China’s development. On the same day, the Chinese Foreign Ministry also urged the US to follow WTO rules and immediately cancel new tariffs on Chinese products and it once again vowed to take all necessary measures to defend Chinese ...

Read More »

Conflict, high borrowing costs clip growth in EBRD regions, report says

Two wars and high borrowing costs have trimmed expected growth in countries covered by the European Bank for Reconstruction and Development (EBRD), the bank said in a semi-annual report released on Wednesday. The EBRD, which covers economic trends across emerging Europe, central Asia, the Middle East and Africa, still expects economic growth of 3% across the 40 or so countries it covers, above 2.5% in 2023. But that forecast is 0.2 percentage points lower than in its September report. “This year is going to be better. But of course there ...

Read More »

Japan’s GDP contracts, complicating BOJ’s rate hike plans

Japan’s economy contracted in the first quarter, squeezed by weaker private consumption and external demand and throwing a fresh challenge to policymakers as the central bank looks to lift interest rates away from near-zero levels. Preliminary gross domestic product (GDP) data from the Cabinet Office on Thursday showed Japan’s economy shrank 2.0% annualised in January-March from the prior quarter, versus a 1.5% drop seen in a Reuters poll of economists. It followed a slightly positive reading in the fourth quarter. The reading translates into a quarterly contraction of 0.5%, versus ...

Read More »

Recent Videos

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