Category: News Desk

Greece to Return to Growth in 2014, Predicts Troika


Greece has reached an agreement with international creditors on its economic recovery efforts, paving the way for the disbursement of 8.8 billion euros in bailout money as well as a return to growth in 2014.

Speaking at a nationally televised address, Greek prime minister Antonis Samaras on Monday confirmed that a deal was reached and said it translated into 2.8 billion euros ($3.7 billion) in bailout loans pending since March and “opened the way” for another 6 billion euros scheduled in May.

Growth in Africa to Outpace World Average


Economic growth in Sub-Saharan Africa is likely to reach 5 percent on average over the next three years, outpacing global growth, as a result of high commodity prices and strong consumer spending on the continent, said the World Bank on Monday.

In its latest edition of Africa’s Pulse, a twice-yearly analysis of issues shaping Africa’s economic prospects, the bank saw increased investment, high commodity prices and a pick-up in the global economy driving this expected growth surge in the world’s poorest continent.

Global Military Spending Falls For First Time In 15 Years: Study


Worldwide military spending declined by 0.5 percent last year to $1.75 trillion, according to data released by a Sweden-based security think-tank on Monday, reflecting major defence cuts in the U.S. and Western Europe, as a result of the global economic crisis that began in 2008.

According to the Stockholm International Peace Research Institute (SIPRI), the drop had been largely due to the U.S. ending its wars in Iraq and Afghanistan and cutting its contingency-operations budgets in 2012.

1 In 4 Children Worldwide “Stunted” From Malnutrition: UNICEF


More than a quarter of children under the age of 5 worldwide are permanently “stunted” due to malnutrition, claimed a report by the United Nations Children’s Fund (UNICEF) on Monday, noting that the damage done to a child’s body and brain caused by stunting was irreversible.

Portugal and Ireland Win IMF-EU Bailout Extension


Eurozone finance ministers on Friday agreed to give Ireland and Portugal seven more years to repay their bailout loans, in a bid to help the two euro nations wean themselves off bailout money in the coming year.

The loan repayment extensions are intended to ease the financial burden on both countries, giving them more time to recover from the debt crisis after their bailout loans run out. Ireland’s loans run out later this year and Portugal’s in 2014.

Prolonging the payment schedules would also allow them to obtain better terms from private lenders.

China Economy Expands 7.7% in Q1


China’s economy grew just 7.7 percent in the first three months of the year, a surprise figure that came in below analyst expectations and raises concerns that the nation’s recovery is faltering.

The growth rate, announced by the National Bureau of Statistics on Monday, was weaker than the 8.0 percent that most economists were expecting.

Gross domestic product had rebounded to 7.9 percent growth in the final quarter of last year, ending a nearly two-year slowdown. China’s full-year annual growth of 7.8 percent in 2012, however, was the weakest since 1999.

Key Economic News to Watch This Week: April 15


The two-day Eurogroup meeting that began on Friday, where the region’s finance ministers discussed aid for Cyprus, Portugal and Ireland, could set the tone for the rest of the week. Also, nearly 100 major U.S. companies including Citigroup and Goldman Sachs are due to release their earnings reports this week.

Monday, April 15

The 18th session of the UN Committee for protection of the rights of migrant workers and their families takes place in Geneva.

Tuesday, April 16

Cost of Cyprus Bailout Swells to $30bn


A leaked draft report by Cyprus’ international creditors shows that the cost of bailing out the island state has swelled to 23 billion euros ($30 billion), larger than the entire year’s output from the country’s economy.

A leaked draft of the updated rescue plan, known as the Debt Sustainability Analysis, revealed that the total bill for the bailout has risen to 23 billion euros, from an original estimate of 17 billion euros, less than a month after the deal was agreed.

China’s Reserves Hit $3.4 Trillion


China’s foreign currency reserves rose in the first quarter by $130 billion, reaching a record $3.4 trillion, approximately the size of Germany’s economy, as a result of massive capital inflows into the Chinese financial system.

Strong growth in foreign capital inflows marks a significant change from last year when money flowed out from China. The return of foreign funds accelerated the domestic lending, according to authorities in Beijing, with total new financing rising by 58 percent to 6.2 trillion yuan ($1 trillion) compared with the first three months of 2012.

How You Set In Motion Coffee's Global Business

Infographic: When Did Coffee Become a Billion Dollar Business?


How far does your money go in the economy when you purchase a cup of coffee? In fact, if you buy 2 cups of coffee a day for a year, you’ll be spending more than the annual income of a coffee farmer in a developing country.