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.
Chad extended its state of emergency by six months around the Lake Chad area as the government combats terrorist organization Boko Haram, according to AFP. Militants grow desperate as their numbers weaken, but they maintain a persistent presence in the region. The war against Islamic radicalism has displaced many Chadians, while contributing to economic weakness.
Iran officially condemned the United States’ Supreme Court’s ruling earlier this month that would allow the families of victims of terrorism sponsored by Iran to collect monetary damages from the nearly $2 billion in frozen assets located in the United States. Taking it a step further, the Islamic Republic indicated that it would sue the U.S. government in the International Court of Justice (ICJ) at The Hague.
Economic analysts are beginning to call the real estate market a “panic” as home sales continue to fall but prices keep rising. New home sales fell by an annualized 511,000 units in March, the third straight month of declines. New home sales have not fallen for three weeks in a row since 2011.
