The week yielded a mixed bag of economic data indicating some strength in America’s recovery. A new Department of Labor study showed unemployment claims rose 20,000 to 294,000, ahead of economists’ expectations. As wages have risen and job openings continue to soar, economists expected more employers to find qualified workers and boost both incomes and the employment rate.
The International Monetary Fund (IMF) released a report on global corruption this week. In it, the international finance organization reported that almost $2 trillion worth of public works projects, permits for private work, and other transactions in countries around the world are tainted each year by bribery. That amounts to about 2% of the world’s total economic output.
Due to anemic growth and an unstable world economy, Italy’s small business sector woes grow worse, according to The Wall Street Journal. Small businesses are vital to Italy’s economy, and the European Union (EU) relies on Italy and other EU nations to strengthen Eurozone GDP. The Italian prime minister has yet to instill policies that would bolster the economy.
Dramatic declines in commercial real estate soured GDP growth in the first quarter, leading to speculation that the Federal Reserve will delay raising interest rates. Analysts are growing increasingly confident that the Fed will delay its rate hike, with a new report by Goldman Sachs calling for the next hike to be delayed until December.
The Organization for Economic Cooperation and Development (OECD) is the parent organization for the International Energy Agency (IEA). The two bodies have apparently been locked in an internal feud for years, and this dispute has finally led the two bodies to consider a full and formal legal split. Of course, such a split could come with a complicated morass of funding and governance issues.
The Norwegian government will tap into its wealth fund once again to sustain government operations, as the sting of a low-priced oil market burdens the Scandinavian country, according to Reuters. Officials have used the fund once before as a rainy day fund and may continue to do so as the economy lacks the necessary revenue. The economy is expected to expand 1.0% in 2016.
The Federal Reserve has boosted one estimate of second quarter GDP as housing and small business data improves. The Atlanta Fed’s GDPNow indicator rose 50 basis points to 2.2% as Fed economists cited expectations for higher consumer spending and fixed investment.
The upgrade comes amidst a report from CoreLogic, a real estate research firm, which showed a tremendous decline in foreclosures. Total foreclosures in America fell 14.9% on a year-over-year basis in March, with just 427,000 foreclosures on the market. That represents 1.1% of homes.
India recently revised its tax treaty with the island nation of Mauritius. The revisions should help close loopholes that allowed investors to use the island nation as a tax shelter. The move comes after the infamous “Panama Papers” revealed similar tax sheltering and thrust the issue to the forefront of the public consciousness around the world.
In a 309-30 vote, the French parliament extended a state of emergency allowing police to detain people in their homes, among other measures, according to AFP. The latest version of the emergency declaration restricts police raids on homes, but the overall plan violates civil liberties and human rights. The state of emergency will extend until May 26.
Nigerien leaders have asked the European Union for one billion euros to tackle a wide-scale migration problem, according to Reuters. Niger is using a transit route by many West African migrants in order to reach the EU. Niger is one of the world’s poorest countries and has been the target of repeated attacks by terrorist organizations.
