economic growth Tag

Posted On October 26, 2017By BlackbeardIn News

Malaysia 2018 Budget: Is there any financial restraint?

PETALING JAYA: The Government is expected to exercise financial discipline even though the coming budget, which will be unveiled tomorrow, is the last one before the next general election. Economists said Prime Minister Datuk Seri Najib Tun Razak was expected to target a lower federal government budget deficit compared with 3% this year. “The overall debt levels are also expected to be lower, considering that there is a cautious outlook on the global economy and oil prices are still soft,” said an economist. Towards this end, the International Monetary FundRead More
China’s workers may be starting to feel like they’re getting a raw deal. Amid soaring industrial profits, employees in the world’s second-largest economy saw slower wage growth last year — and many are seeing the smallest raises since 1997. That’s another sign that the years of pay gains above ten percent and burgeoning spending power are coming to a close, as China confronts industrial overcapacity, mounting debt and waning competitiveness. Yet while slowing wage growth is bad for workers now, it’s not entirely negative for the economy as a wholeRead More
Rich nations are generally happier about today’s economy than emerging markets, but less optimistic about the future. Wealthy countries are generally happier than their peers in the developing world about today’s economy, though they are far less upbeat about prospects for the next generation, a new study shows. According to a survey conducted by the Pew Research Center, a median of 51 percent of people in 17 advanced economies say their current economic conditions are positive, compared to just 45 percent in developing nations. Pew Research CenterNote: Survey of 34,788 peopleRead More

Posted On June 5, 2017By HoudiniIn Articles

There’s a New Way to Control Inflation

The San Francisco Fed president would let prices grow faster—sometimes. The Federal Reserve would never get a medal in archery. Since January 2012, when it publicly adopted a target of 2 percent for annual inflation, it has undershot in 59 of 63 months. John Williams, president of the Federal Reserve Bank of San Francisco, believes there’s a way to help the institution improve its aim. The Fed would still try to keep prices rising at 2 percent a year, but if it fell short one year, it wouldn’t just try harder toRead More

Posted On June 5, 2017By HoudiniIn News

Central Bank Cash Flood Swells over Bond Danger

The good news for bullish debt investors is that riskier assets will probably keep rallying in the near term. The bad news is that the longer the rally continues, the more these investors stand to lose of their principal investments down the line. That’s because companies and consumers have substantially boosted their leverage in the past few years as central bankers worldwide flood the market with cash to suppress borrowing costs. This implies lower recoveries in the future, according to Matthew Mish, an executive director in global credit strategy at UBS AG. In otherRead More
India’s economy grew at the slowest pace in more than two years in the first quarter, dragged down by Prime Minister Narendra Modi’s cash ban in November and the weight of the country’s bad bank debts. Key Points GDP expanded 6.1 percent in January-March quarter from a year earlier, compared with 7.1 percent in the survey Gross domestic product grew 7.1 percent in the year through March after an 8 percent expansion the previous year, the Statistics Ministry said in a statementin New Delhi on Wednesday Median estimate of Bloomberg survey ofRead More

Posted On June 1, 2017By HoudiniIn Articles

Is China Headed for a Recession?

Not exactly, but that raises another problem. For the first time ever, China is facing a dreaded prospect: the inverted bond yield curve. The phenomenon, in which long-term interest rates sink below short-term interest rates, has caused some consternation among market-watchers, who know it’s traditionally a harbinger of recession. The inversion suggests markets expect interest rates to fall eventually as monetary authorities move to stimulate economic activity. In other countries, the curve is such a reliable indicator of a downturn that the Cleveland Federal Reserve maintains a recession probability measureRead More
Manufacturing powerhouses will find it easier to adapt. Japan and Germany may be sitting on a ticking demographic time bomb where aging populations begin to drag down economic growth. Good thing they’re also prime candidates for robot revolutions. Increased automation and more use of robotic technology in these manufacturing powerhouses could help cushion the impact, according to Moody’s Investors Service. “To the extent that robots can undertake activity that require labor, they will compensate for the negative impact that a slower growth in labor force would have otherwise had onRead More
Researchers build urban farms, crop labs to combat contamination. Yang Qichang walks through his “plant factory” atop the Chinese Academy of Agricultural Sciences in Beijing, inspecting trays of tomato vines that may help farmers slip the stranglehold that toxins have on China’s food supply. The containers are stacked like bunk beds, with each vine wrapped in red and blue LED lights that evoke tiny Christmas trees. Yang is testing which parts of the visible-light spectrum are optimal for photosynthesis and plant growth while using minimal energy. He’s having some success.Read More
Moody’s Investors Service cut its rating on China’s debt, in a challenge to the view that the nation’s leadership will be able to rein in debt while maintaining the pace of economic growth. Moody’s reduced the rating to A1 from Aa3 and changed the outlook to stable from negative, the company said in a statement on Wednesday. It cited the likelihood of a “material rise” in economy-wide debt and the burden that will place on the state’s finances. The offshore yuan dipped after Moody’s downgrade, weakening 0.07 percent to 6.8850Read More