Wednesday, December 25

Global Economics

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

Amazon.com Executive Quits In Protest of Worker Firings
4May By Patti MohrNo Comments
Global Economics, Types of News: Brief

Amazon.com Executive Quits In Protest of Worker Firings

May 4, 2020-Despite surging sales, Amazon.com faces a critical time as its workers around the world raise safety concerns and as one of its top executives resigns due to "toxicity running through the company culture." Tim Bray left his position as a vice-president at Amazon Web Services May 1 in protest over the company's treatment of workers who complained about unsafe warehouse conditions amid the COVID-19 pandemic. Bray said that although the decision to leave would cost him over a million dollars "not to mention the best job" he's ever had, he could no longer support power imbalances between workers and executives. In a blog post, Bray said Amazon.com executives fired two high-profile activists who had promoted a petition and organized a video call on behalf of warehouse work...
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Global Economy to Shrink by 3 Percent in 2020, IMF Says
15Apr By Patti MohrNo Comments
Global Economics, Types of News: Brief

Global Economy to Shrink by 3 Percent in 2020, IMF Says

April 15, 2020--The global economy is headed towards to worst economic downturn since the Great Depression due to the COVID-19 pandemic, according to the world's lender of last resort. The International Monetary Fund now projects a contraction of 3 percent to the world economy. It's a downgrade of 6.3 percentage points from the IMF's January 2020 estimate. The difference is due to the global pandemic and the measures taken around the world to contain it. "The magnitude and speed of collapsing activity that has followed is unlike anything experienced in our lifetimes," said Gita Gopinath, IMF's economic counselor and director the Research Department in a press briefing on April 14. "This makes the great lockdown the worst recession since the Great Depression, and far worse than t...
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Eurozone Ministers Agree to €500bn Rescue Package
10Apr By Patti MohrNo Comments
Europe, EU, Eurozone, Global Economics

Eurozone Ministers Agree to €500bn Rescue Package

April 10, 2020--Under increasing strain to hold their political and economic union together, Eurozone finance ministers agreed to a €500 billion economic rescue package for workers, businesses and governments. Eurogroup President Mário Centeno said the plan is meant to ensure Europe grows "together and not apart once the virus is behind us." The latest rescue package to deal with the economic fallout from the COVID-19 crisis comes on top of monetary and fiscal stimulus measures worth trillions of Euros. Previous measures amount to 3 percent of GDP in fiscal measures and 16 percent of GDP in new monetary policies, according to the Eurogroup. Finance ministers from the 19 Eurozone countries agreed to the latest measure after a marathon 14-hour session. "Now we are building Europe...
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9Apr By Patti MohrNo Comments
Global Economics, Global Trade, Types of News: Brief

Global Economy Faces ‘Sharply Negative’ Outlook for 2020; Partial Recovery Possible for 2021

April 9, 2020-Despite fiscal stimulus of $8 trillion by governments around the world, the global economy may turn "sharply negative" this year due to the COVID-19 pandemic, according to the International Monetary Fund. Meanwhile, experts predict massive declines in global trade and employment. "Today we are confronted with a crisis like no other," IMF Managing Director Kristalina Georgieva said on Wednesday. "Covid-19 has disrupted our social and economic order at lightning speed and on a scale that we have not seen in living memory." The outlook is bleak for both advanced and developing economies. The IMF projects negative per capita income growth in over 170 countries this year and only a partial recovery under baseline assumptions for 2021. Georgieva emphasized that 2020 wil...
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3Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

U.S. Federal Reserve Says Economic Outlook Has ‘Changed Materially’ as Coronavirus Spreads

March 3, 2020--Over a week into turbulence in the financial markets from a global outbreak of the coronavirus, the U.S. Federal Reserve cut its policy rate by 50 basis points amid signs that the economic outlook has "changed materially." Federal Reserve Chair Jerome Powell said he expects the COVID-19 virus to impact the global economy "for some time." It has already affected tourism and travel industries and threatens to disrupt global supply chains. "The magnitude and persistence of the overall effects on the economy, however, remain highly uncertain, and the situation remains a fluid one," Powell said on Tuesday. Globally, the COVID-19 virus has infected at least 90,893 people across 21 countries and killed 3,110, the World Health Organization reported today. Market Turbulence ...
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US Debt Tops $22 Trillion as Lawmakers Deliver New Deal
23Jul By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Domestic Politics, Global Economics, Types of News: Brief, United States

US Debt Tops $22 Trillion as Lawmakers Deliver New Deal

July 23, 2019--U.S. lawmakers agreed to raise the limit on incurring national debt to $22 trillion to July 31, 2021. They also agreed to a two-year budget agreement that increases spending by $320 billion. Democratic House Speaker Nancy Pelosi called it a "bold, bipartisan and a victory for Democrats and the American people." President Donald Trump said in a tweet the deal is "a real compromise in order to give another big victory to our Great Military and vets." According to Pelosi's statement, the deal increases both defense and non-defense spending and avoids a government shutdown. The U.S. national debt has risen from $11.9 trillion in 2009 to $22 trillion in 2019. Meanwhile, the interest on the debt (marketable non-government) has risen from 2.28 percent to 2.5 percent in th...
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Remittances Keep Venezuelans Afloat Amid Economic Crisis
21Jun By Patti MohrNo Comments
Global Economics, Global Trade, Types of News: Brief, Types of News: Videos

Remittances Keep Venezuelans Afloat Amid Economic Crisis

June 21, 2019-Money transfers into Venezuela from friends and family living abroad are primary means of survival for those left behind in the dire circumstances of economic collapse, according to economic data and on-the-ground reporting by The Indigo Traveller. Economic Snapshot of Venezuela Since 2014, the Venezuelan economy has been in free fall. In terms of economic size, its GDP shrunk from $324 billion in 2015 to $76 billion (projected) for this year. It started shrinking in 2014 with a decline of nearly 4 percent. The past two years, the economy decreased by more than 15 percent a year. Meanwhile, inflation has skyrocketed -- by 10 million percent projected for this year alone. That leaves residents dealing with food shortages, blackouts, unemployment, health issues...
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Japan’s Abe Promotes Indo-Pacific Strategy in Trade Talks
29May By Patti MohrNo Comments
Diplomacy, Global Economics, Global Trade, Globalization, Global Disintegration, Types of News: Brief

Japan’s Abe Promotes Indo-Pacific Strategy in Trade Talks

May 29, 2019--As the U.S.-Japan continued a dialogue over trade between their two nations over the weekend, Japan Prime Minister Shinzo Abe put the talks with U.S. President Donald Trump in the context of a wider free-trade agenda for the region. Specifically, Abe emphasized an Indo-Pacific strategy, which would engage the United States in stronger economic ties with the region. "In today’s summit meeting, we welcomed the steady progress of U.S.-Japan cooperation, looking toward the creation of free and open Indo-Pacific, including the areas such as energy, digital, and infrastructure," Abe said at a joint press conference with Trump in Tokyo on Monday. "Going forward, we will walk hand in hand and promote the cooperation for the realization of this common vision of our two nation...
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United States Named ‘Most Competitive’ Economy
19Oct By Patti MohrNo Comments
Global Economics, Globalization, Global Disintegration, Types of News: Brief

United States Named ‘Most Competitive’ Economy

October 19, 2018--The most competitive economies in the world today are the United States, Singapore, Germany, Switzerland and Japan, according to an annual assessment by the World Economic Forum. The annual report provides a snapshot of the business landscape within 140 countries based on a criteria thought to support economic growth. U.S. Innovation & Dynamism Rising one spot over last year's number two spot, the United States ranks the highest this year. The high score of 85.6 on a 100-point measurement scale is due mainly to it business culture, labor market and financial system. The United States ranked less well, however, on other quality measures such as health, judicial independence, corruption and checks and balances. It's life expectancy of 67.7 years ranks 46th on th...
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U.S. Economy ‘Strong,’ Fed Says; Others Warn of ‘Darkening’ Global Economic Outlook
14Jun By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Organizations, IMF, WTO, G7, Types of News: Brief

U.S. Economy ‘Strong,’ Fed Says; Others Warn of ‘Darkening’ Global Economic Outlook

June 14, 2018-The U.S. economy is "rising at a solid rate," the Federal Reserve said yesterday as it raised its short-term interest rate from 1.75 to 2 percent and projected two more increases this year. A strong labor market, household spending, and business investment are strengthening the economy while the inflation rate hovered around 2 percent, the Federal Open Market Committee statement said. Asked about U.S. trade tensions between the United States and its partners, Federal Reserve Chairman Jerome Powell said he hears rising concerns from business leaders who are delaying investment decisions. He added, however, that at this point, it is simply "a risk" rather than a current reality. "Right now, we don't see that in the numbers at all," Powell said. "The economy is very str...
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