IMF, World Bank Expect Emerging Market Defaults
The International Monetary Fund (IMF) and the World Bank are meeting to discuss providing billions of dollars in funding to avoid corporate defaults on a global scale.
Category: Markets
Zimbabwe Falters amid Severe Drought and Mismanagement
According to the U.N.’s World Food Program, Zimbabwe faces a severe food shortage as a prolonged drought plagues the economy, according to Reuters. The Southern African nation faces its worst drought in 25 years while recovering from unprecedented levels of inflation that brought the economy to its knees five years ago. Zimbabwe’s agriculture sector comprises 30 percent of exports and 19 percent of GDP.
Asian Development Bank and IMF Singing Philippines Praises
Economic forecasting is always difficult. The American economist John Kenneth Galbraith famously said ‘we have two sorts of forecasters: those who don’t know and those who don’t know they don’t know’. Yet, while some sceptics assert that economic forecasts are of little value, they are useful for governments and firms to develop their plans and budgets for the year ahead.
Should a Slowing China be a Surprise?
After intensive industrialization, growth deceleration is natural. No nation has enjoyed sustained double-digit growth after industrialization. The real test of resilience is the continued increase of Chinese living standards.
What of Japan’s Abenomics Now?
We had been tracking the budding scandal that implicated the office of Japan’s Economic Minister Amari. We had expressed our concern earlier this week that the scandal could sap Amari’s office strength and be a distraction. However, the situation unraveled quicker than we anticipated and Amari resigned earlier today.
Mortgage Applications Rise as Treasury Yields Fall
Despite efforts from the Federal Reserve to drive interest rates higher, lower expected borrowing costs and sliding inflation are lowering Treasury yields and may make mortgages cheaper. Mortgage applications rose as interest rates fell, according to a new report by the Mortgage Bankers Association (MBA), which noted a 6.2% increase in total mortgage applications from the prior week.
The Markets Have You Down? Blame Anchoring Bias
It has been a shaky start to 2016 for global stock markets, with substantial falls across all international markets, followed by some weak rallies.
The overall decline has been partly blamed on the price of crude oil, which is hovering around US $30 a barrel down from $100 over a year ago, along with market fears on the overall health of the Chinese economy.
Making the Most of Africa in the 21st Century
If the mass media is to be believed, Africa is hardly a continent brimming with opportunities for business. However, for some time international business commentators have been positioning the continent as the next market with significant potential. It is now often described as being ready to take on the mantle of Asia where growth is slowing, markets are becoming crowded and internal competition is becoming more severe.
Philippine Leadership in Danger of Using Up Political Capital
The Philippines has performed well in the past few years relative to its peers. It demonstrated great resilience to exogenous shocks that would have undone less capable economies. However, will it be able to sustain its positive economic position?
There are positive signs. Revised forecasts put GDP growth in 2015 between 5.7–6 percent and forecasters expect a strong rebound in the coming year. The government has maintained an official forecast of 6–7 percent. It expects higher growth in 2016, even when the current administration ends its term of office in June.
U.S. Energy Companies, Manufacturing, Take on the Chin
A leading economic indicator suggesting Texas’s economy is suffering an aggravated decline on the falling price of oil left most investors undeterred from staying with U.S. stocks. The monthly Texas Manufacturing Outlook Survey showed a sudden and unexpected decline in activity, falling to a sharp contraction because of weak demand.
