In an increasing sign that U.S. workers cannot afford to buy houses as much as they used to, unemployment claims rose as mortgage rates fell, suggesting demand for houses is dropping as employment declines.
The International Monetary Fund (IMF) has weighed in on the deepening economic crisis in Zimbabwe. The African nation, already one of the poorest countries in the world, has been plagued by drought, suffered from deflation, and struggled with falling commodity prices around the world. Given the nature of Zimbabwe’s economic output, the IMF fears there is very little relief in sight for the African nation, according to a report it released on Wednesday.
Singaporean authorities have increased military expenditures to upgrade its military while presenting a strong front during the South China Sea territorial dispute, according to Reuters. Contractors, such as Boeing and Lockheed Martin, value Singapore’s business due to the city-state’s lucrative economic growth and timely payment history. Many nations in Asia have increased military spending because of higher economic growth and increased nationalism.
A surprising jump in factory orders may reverse a decline in U.S. exports, but weak demand remains throughout America and the world.
The trade balance deficit between America and the rest of the world fell 14%, due largely to a major decline in exports, which fell nearly 1% from February, as foreign markets continue to struggle with a strong dollar, low commodity prices, and stagnating growth. Meanwhile, cash-strapped Americans are buying fewer foreign-made goods, as imports fell 3.6% from the prior month.
Many may think that the United States or Europe, as the location of most of the world’s most developed nations, would be driving global economic growth. Asia, however, is actually the area driving global economic growth this year, according to the International Monetary Fund (IMF).
Hungary will hold a referendum in September or October over the European Union’s mandatory migrant resettlement quota, according to Reuters. Roughly 160,000 refugees are looking for host nations, and many governments within the EU have accepted the Brussels-based quota, but Hungarian leadership stresses national sovereignty above all else. The travelers in question are comprised of refugees from war-torn countries and migrants seeking better opportunities.
Home prices are going up even more in America, but wages are not rising for most middle class Americans. A new study by CoreLogic shows a 6.7% year-over-year increase in home prices in March. Home prices have gone up in every month over the last four years, according to CoreLogic.
The World Trade Organisation (WTO) has announced plans to partner with Pakistan to help it grow its export capacity under an “Aid for Trade” initiative. The plan would add value to Pakistan’s products, improve its workforce, provide training, and help the country explore new markets around the world.
The international community is lending a helping hand to Ethiopia as a devastating drought affects over 10 million people, according to Voice of America. Six million children face hunger, with 435,000 at risk of severe malnutrition. Ethiopia will need $1.4 billion in aid in 2016 and additional funds for next year. Officials ordered the drilling of wells to counter the effects of the drought.
Amid weakening manufacturing activity and poor economic growth in the beginning of the year, the United States Treasury has decided to pay less debt in the coming months.
The first quarter of 2016 saw America paying $112 billion of its bills, but because of higher spending than expected and lower receipts from a weak tax base, the Treasury’s coffers are being pressured. That means the federal government will pay just $65 billion of its debts in the second quarter, down significantly from the $112 billion it paid in the first three months of 2016.
