Economy Archives

Yellen ignores growth numbers, pushes tapering

International Finance DeskMay 2, 2014

by International Finance DeskMay 2, 2014

The Federal Reserve under the new chairman reduces stimulus by another 10 bn, brings it down to $45 billion, and says economic activity is picking up, reports Team IFM Washington, May 2: The Janet Yellen-headed US Federal Reserve has decided to continue with predecessor Ben Bernanke’s tapering policy despite unattractive first quarter growth numbers, announcing...

Economy

As Demand Improves, Time to Focus More on Supply

International Finance DeskApril 30, 2014

by International Finance DeskApril 30, 2014

By Olivier Blanchard 30th April 2014 The dynamics that were emerging at the time of the October 2013 World Economic Outlook are becoming more visible. Put simply, the recovery is strengthening. In our recent World Economic Outlook, we forecast world growth to be 3.6 percent this year and 3.9 percent next year, up from 3.0 percent last year. In...

Economy

For Africa, Good Policies Bring Good Prospects

International Finance DeskApril 28, 2014

by International Finance DeskApril 28, 2014

By Antoinette M. Sayeh 29th April 2014 Once again, the latest review of growth prospects for sub-Saharan Africa shows that the region’s economy is in strong health. Growth in the region is set to pick up to 5½ percent in 2014 compared to 4.9 percent last year (see Chart 1). My view is that this growth...

Economy

Europe’s Economic Outlook

International Finance DeskApril 28, 2014

by International Finance DeskApril 28, 2014

By Reza Moghadam 28th April 2014 Economic growth across Europe is slowly picking up, which is good news. But the recovery is still modest and measures to boost economic growth and create jobs are important. Western Europe: picking up the pace The recovery projected last October for the euro area has solidified. This is reflected...

Economy

What can the eurozone do to combat the risk of a liquidity cliff?

International Finance DeskApril 27, 2014

by International Finance DeskApril 27, 2014

Marie-Pierre Ripert, economist at Natixis With the end of the ECB’s repayment programmes approaching there could be significant repercussions on those euro-area banks still reliant on this form of liquidity provision. Marie-Pierre Ripert, economist at Natixis, explores the options available to avoid the “liquidity cliff” As European banks have repaid more than half the existing...

Economy

Unleashing Brazil’s Growth

International Finance DeskApril 14, 2014

by International Finance DeskApril 14, 2014

By Martin Kaufman and Mercedes García-Escribano, 14th April 2014 Since the early 2000s, Brazil’s economy has grown at a robust clip, with growth in 2010 reaching 7.5 percent—its strongest in a quarter of a century. A key pillar of its hard-won economic success has been sound economic policies and the adoption of far-reaching social programs,...

Economy

The Ukraine crisis

International Finance DeskApril 11, 2014

by International Finance DeskApril 11, 2014

by Dr Shane Oliver,Head of Investment Strategy and Chief Economist, AMP Capital 11th April 2014 The situation in Ukraine could get worse before it gets better and so it remains a threat for investors to keep an eye on in the short term. Ultimately, it poses a greater threat to the Russian economy than to...

Economy

Depth in Africa’s Transformation

International Finance DeskMarch 27, 2014

by International Finance DeskMarch 27, 2014

By Homi Kharas 27th March 2014 Africa is growing fast but transforming slowly. This is the message of the 2014 African Transformation Report, launched last week by the African Center for Economic Transformation (ACET). The report addresses a worry on the minds of many: in spite of impressive growth, the structure of most sub-Saharan African economies...

Economy

Turkish Lira in a free fall again, this time over Twitter block

International Finance DeskMarch 24, 2014

by International Finance DeskMarch 24, 2014

Erdogan government declares war on social media as polls approach and opposition gathers steam, dealing the currency a body blow, reports Team IFM Istanbul, March 24: Turkish Prime Minister Tayyip Erdogan blocked access to Twitter on Friday in a desperate bid to gag detractors before the civic polls next week, and in the process, threw the country...

Economy

China woes pile on as factory output sinks to eight-month low

International Finance DeskMarch 24, 2014

by International Finance DeskMarch 24, 2014

Despite rise in export orders, a sluggish domestic demand drags factory operations and prompts economists to predict new policy changes, reports Team IFM Beijing, March 24: March has turned out to be the worst month for China’s manufacturing sector since last August, data released on Monday by an independent survey reports says, making it also...