Wednesday, December 25

Global Economics

Looking at economic forecasts for the global economy and the impact of national and multinational policies.

Biden, Automakers, UAW Unite to Promote Electric Vehicles
7Aug By Steve BerlinNo Comments
Climate Action, ESG, Sustainable Finance, Domestic Politics, Energy Policy, Oil & Gas, Global Economics, Types of News: Brief, Types of News: Videos, United States

Biden, Automakers, UAW Unite to Promote Electric Vehicles

President Biden held an event with U.S. and Dutch automakers August 5, 2021 at the White House. Executive Order Establishes New Rule-Making on Emissions Standards And Sets Goal 50 Percent Electric Vehicles by 2030 August 7, 2021--President Joe Biden signaled a new push for U.S. battery manufacturers and lower greenhouse gas emissions with an Executive Order calling for half of all new cars and trucks made in America to be electric by 2030. In addition to setting that goal, the president called for federal investment in building a national network of a half-million electric vehicle charging stations, customer incentives that will result in more manufacturing and union jobs, financing and retooling the domestic manufacturing supply chain, and developing more clean technologies. Fund...
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U.S. Government To Breach $22 Trillion Debt Limit By August 1
29Jul By Patti MohrNo Comments
Global Economics, Types of News: Brief, United States

U.S. Government To Breach $22 Trillion Debt Limit By August 1

Total Public Outstanding Debt Is $28.4 Trillion Photo by Alexander Schimmeck. July 29, 2021—The United States government is expected to run out of borrowing authority on August 1. That is two to three months sooner than expected. As a result, beginning tomorrow, July 30, the Treasury will suspend sales of certain securities. The debt limit, however, is actually not so simple. Significantly, the implications are larger than sales of securities. Already Exceeding the $22 Trillion Limit Treasury Secretary Janet Yellen wrote to Congress late last week, asking lawmakers to either increase the current limit or continue suspending it. She said that would "simply allow Treasury to pay for previously enacted expenditures." Reaching the debt limit occurs every few years. It means ...
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Global Economy Rebounds to 6 Percent Growth
29Jul By Spencer HayesNo Comments
Global Economics, Types of News: Brief

Global Economy Rebounds to 6 Percent Growth

IMF projections, July 2021 Trade Expected to Grow by 9.7 Percent July 29, 2021--The global economy is returning to strong growth this year, according to the International Monetary Fund. Trade, travel and economic activity are resuming following the global pandemic. In the United States, growth is projected at 7 percent. The Euro area is expected to have a 4.6 percent increase. And emerging markets and developing economies are rebounding from the recession with 6.3 percent growth this year. Prices & Inflation Consumer prices are increasing by 2.4 percent on a global basis. Commodity prices are rising, with oil jumping by 56.6 percent. Trade Trade is expected to pick up by nearly 10 percent this year and then to 7 percent in 2022. According to the IMF, "The merchan...
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Inflation Jumps to 4.2 Percent in the United States
12May By Patti MohrNo Comments
Global Economics, Types of News: Brief

Inflation Jumps to 4.2 Percent in the United States

May 12, 2021--After months of speculation by economists and analysts about the potential for inflation in the United States, new government data shows the concerns were legitimate. Inflation in April rose to 4.2 percent, up from 2.6 percent in March. Moreover, it is the largest 12-month increase since 2008. It's a sign that the U.S. spending spree in the midst of the global pandemic may be hitting a wall. Further exacerbating problems are supply shortages in everything from labor to semiconductors to hot dogs. Highest Rising Prices The energy sector, in particular, draws attention as prices of oil and gas spiked. But even setting aside prices in food and energy, inflation nearly doubled, from 1.6 percent in March to 3 percent in April. Consumers found the highest rising p...
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World Recovers on Divergent Economic And Income Paths
3Mar By Patti MohrNo Comments
Global Economics, Types of News: Brief

World Recovers on Divergent Economic And Income Paths

Projections for Global Growth and Income March 3, 2021 -- If vaccine distribution throughout the world is effective in fighting off the COVID-19 virus and its related variants, the global economy is likely to rebound with strength. The International Monetary Fund projects global growth to reach 5.5 percent by the year's end. Not surprisingly, however, as businesses resume activity, economies are likely to recover at different rates. In January, the IMF projected that the recovery would "vary significantly" based on countries' access to medical interventions of the virus, policy supports for the economy, exposure to other countries, and their pre-crisis structural issues. Economic Projections According to the fund's data mapper for 2021, regions like the Middle East, Sub-Sahar...
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Central America Leaders Advance Regional Development Plans As Area Slides Into Poverty
12Dec By Patti MohrNo Comments
Diplomacy, Geopolitics, Global Economics, Organizations, IMF, WTO, G7, Types of News: Brief

Central America Leaders Advance Regional Development Plans As Area Slides Into Poverty

Dec. 12, 2020-The global pandemic and a double-dose of hurricane damage is sending Central American populations and governments into a crisis. Poverty rates are increasing. And governments are facing protests at home. This week leaders from Central American countries met to discuss the structural roots of migration and an ambitious development plan for the region. Poverty Rising, Economies Shrinking About 12 million people in Central America fell into poverty this year, according to Alicia Bárcena, executive secretary for the Economic Commission for Latin America and the Caribbean (ECLAC). "The fiscal standing of these countries has been affected by expenditures made to confront the pandemic," Bárcena said, according to the press release. "In addition, the ETA and IOTA hurricanes ...
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18Nov By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

Global Debt Surging in 2020

Nov. 18, 2020--Governments and companies took on an unprecedented level of debt in the first nine months of this year. The total debt rose $15 trillion above 2019, much of it related to the impact the global pandemic, according to the Institute of International Finance. For perspective, the association estimates that global debt may swell to $277 trillion by the end of 2020. As a share of the global economy, that is 365 percent of GDP, up from 320 percent of GDP in 2019. Debt Crisis Worse in Poorest, Middle-Income Countries The news follows a separate report by the International Monetary Fund about extreme debt distress in emerging and developing economies. "For some, a crisis is imminent," the IMF report said. "For many more, only exceptionally low global interest rates may b...
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Aiming to Attract Foreign Business and Visitors, UAE Eases Islamic Laws
8Nov By Patti MohrNo Comments
Domestic Politics, Global Economics, Political Systems, Domestic Politics, Types of News: Brief

Aiming to Attract Foreign Business and Visitors, UAE Eases Islamic Laws

November 8, 2020--In an effort to attract foreign capital, business and tourists, the United Arab Emirates announced plans on Saturday to ease up on Islamic Laws governing citizens and non-citizens. The changes come as COVID-19 and low oil prices impact the global economy. For the UAE alone, the IMF projects a 6.6 percent economic contraction in 2020 and a growth of 1.3 percent for 2012. Laws Governing Personal Status Officially, the the state-run Emirates News Agency (WAM) reported the changes. The site announced that UAE President Khalifa bin Zayed Al Nahyan approved changes to Federal Law-Decrees on "Personal Status, Civil Transactions, Penal Code and Criminal Procedural laws." According to reporting by the Associated Press, the changes amount to "a major overhaul" of Islami...
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China’s Exports Rise, Adding to Economic Growth in 2020
8Nov By Patti MohrNo Comments
Global Economics, Global Trade, Types of News: Brief

China’s Exports Rise, Adding to Economic Growth in 2020

November 8, 2020--China's foreign trade expanded 4.6 percent year-on-year in October, helping the country sustain economic growth for the year, despite the COVID-19 pandemic. Overall, China's foreign trade grew by 1.1 percent in the first 10 months of the year, according to official data the Chinese government released yesterday. With exports accounting for nearly a fifth of China's economy, the export growth helped lift China's GDP by 4.9 percent in the third quarter. Export Growth Jumps in October In response to the impact of the global pandemic, the government streamlined customs procedures and provided incentives for cross-border e-commerce. Mechanical and electrical parts accounted for the largest share of the country's exports. Textile exports, which include masks, incre...
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In the Midst of Pandemic, China Sets Economic Growth Target Aside
22May By Patti MohrNo Comments
Domestic Politics, Global Economics, Types of News: Brief

In the Midst of Pandemic, China Sets Economic Growth Target Aside

May 22, 2020--As Chinese Premier Li Keqiang delivered the government's work report at the start of China's 13th National People's Congress, one thing was notably missing: a target for economic growth. For decades, China's strength has come from a nearly single-pointed focus on increasing the size of its economy. Today, as its nation's leaders gather in the Great Hall of the People for their annual legislative session, the focus is on recovering from the ongoing blows of the COVID-19 pandemic. "The COVID-19 epidemic is the fastest spreading, most extensive, and most challenging public health emergency China has encountered since the founding of the People's Republic," Mr. Li said as he delivered his address to delegates. "At present, the epidemic has not yet come to an end, while th...
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