When nations rank highly for imports and exports according to an Organization for Economic Cooperation and Development (OECD) study, that is usually cause for celebration. A recent OECD study, however, has left a number of Asian nations with a bit of a black eye for their popular trade items. The study in question ranked the nations with the largest traffic in counterfeit and pirated goods.
North Korea will conduct a congress this Friday to foster greater support for leader Kim Jong Un and the Workers’ Party of Korea, according to Associated Press. Leaders intend to unify the country against, so-called, U.S. imperialism, while drumming up support for economic progress. The Hermit Kingdom has incurred indignation from world powers as nuclear tests continue, and analysts expect its nuclear program to form a core part of the rallying event.
After a major decline in economic growth, further indicators of weakness in the U.S. economy are coming from various studies. The Chicago Purchasing Managers Index (PMI) fell to 50.4 in April, indicating that activity just barely expanded. That was far above the expectation that the index would almost hold its previous reading of 53.6.
GDP growth in the United States fell significantly, growing just 0.5% in the first quarter of 2016. Despite economists’ predictions of continued economic strength, real GDP growth was just 0.5% in the first three months of this year after rising 1.4% in the fourth quarter of 2015. Economists had expected 0.7% growth after downgraded estimates throughout the quarter, largely due to weak data from the housing, manufacturing, and export sectors.
U.S. Vice President Joe Biden visited Iraq this week to support ongoing reforms of the central government, according to the Associated Press. Biden praised Iraq’s progress in forming a cohesive government, but the Shia-dominated political system has faced criticism for corruption and persecution of the Sunni population. Iraq’s economy is under siege in the wake of ISIS incursions and lower oil prices.
A devastating earthquake struck Ecuador on April 18. The quake left 659 dead and caused an estimated $2 to $3 billion (US) in property damage. The damage has left Ecuador shattered emotionally and economically.
As a result, Ecuador has reached out to various nation-level lenders to seek help with the rebuilding process. Chief among the organizations with which the Latin American nation is negotiating is the International Monetary Fund (IMF). Ecuador announced the negotiations on Thursday.
With home sale growth weakening and America’s trade balance worsening, the Federal Reserve announced it would not increase interest rates.
Libya’s eastern government defied the wishes of the central government for the first time by selling oil to an oil tanker, according to Reuters. The UN Security Council responded by blacklisting the tanker, and officials fear that the move could spark future unofficial sales that would weaken central state revenues. Oil is the primary income source in Libya, but production has declined due to political instability, security concerns and labor disputes.
After years of sanctions, things are looking up economically for the Iranian people. However, the World Bank, an organization dedicated to eradicating poverty around the world, appears reluctant to take part in the Middle Eastern nation’s recovery, despite its weighty economic needs.
Weak consumer confidence and a disappointing lack of significant growth in durable goods sales are pointing to a weakening American economy. Durable goods sales rose just 0.8% in March after a 3.1% decline in February; despite expectations of a growth rate twice that. Core durable goods growth actually fell 0.2% after falling in February, although analysts had expected moderate growth.
