A new study by the UK government argues families in the country will pay £4,300 ($6,185) more in income taxes if the country leaves the EU. After an aggressive charm offensive to urge British voters to vote to stay in the EU, the country’s Treasury released a study saying that Brits would be “worse off by £4,300 a year per household if Britain votes to leave European Union,” according to the Treasury.
1Malaysia Development Berhad (1MDB), a strategic development company that the government of Malaysia owns, defaulted on a $1.1 billion loan from a United Arab Emirates wealth fund. Prime Minister Najib Razak founded 1MDB and has faced a string of corruption allegations surrounding the firm, and critics have called for his resignation. 1MDB is a developmental firm designed to commence infrastructure projects and attract foreign direct investment.
Several of the world’s leading international economic organizations announced on Tuesday that they would join forces to confront the various tax issues illuminated by the recent Panama Papers scandal. These organizations include the United Nations (UN), the International Monetary Fund (IMF), and the World Bank, the Organization for Economic Cooperation and Development (OECD), among others.
They will develop new processes, tools, strategies, and standards designed to halt tax base erosion and prevent tax evasion by individuals and corporations.
As the Federal Reserve continues to see weakening GDP growth, a new report from Bloomberg News suggests a hidden recession signal for the United States. The Atlanta Federal Reserve’s GDPNow calculation, which uses large data sets to make real time GDP predictions, sees just 0.3% GDP growth in the first quarter of 2016, far below many analysts and economists’ expectations.
The Federal Reserve highlighted a decline in real residential investment growth from a Census Bureau study, which saw just 8.5% growth versus previous 9% projections.
Although international economic treaty news has lately been peppered with more stories about better-known trade deals like the Trans-Pacific Partnership (TPP), there is another treaty that has been generating just as much discussion and, in some cases, animosity.
The treaty in question is the Comprehensive Economic and Trade Agreement (CETA), intended to be an agreement between the European Union (EU) and Canada. Unfortunately, while negotiators announced that they had reached an agreement on CETA back in October 2014, it has been stuck in the approval phase ever since.
The United States categorized Tajikistan under the official banner of “country of particular concern,” pertaining to the government’s crackdown on religious freedom and other human rights abuses, according to EurasiaNet.
U.S. leadership, however, has decided not to pursue sanctions against the Central Asian country due to its vital role in fighting terrorism and drug trafficking. The Defense Department announced that Tajikistan would receive $50 million in assistance over the next few years to combat terrorist influence in the region.
Further worries about the economy are coming from the Federal Reserve as homebuilders’ expectations drop. According to a new study by the National Association of Homebuilders, firms see little signs of renewed strength in demand for new homes as prices continue to skyrocket and wages stagnate.
The NAHB’s Housing Market Index (HMI) remained at 58 for the third month in a row, despite expectations of an increase, leading to a “cautiously optimistic” outlook for construction growth this year, according to NAHB Chief Economist Robert Dietz.
Mozambique objected to the International Monetary Fund’s (IMF’s) accusation that officials concealed additional loans from Russia VTB Bank and Credit Suisse for defense spending, according to Reuters. The IMF cancelled a trip to Mozambique on Friday in wake of the alleged undeclared loans, but Finance Minister, Adriano Maleiane, stated that the accusation is misguided and stems from confusion. Mozambique borrowed $286 million from the IMF to help the country through a turbulent world economy.
Gaza has struggled socially and economically almost from its inception, but this has been particularly true following Israel’s war against the region in 2014. Following the devastation, a number of Arab nations led the way in pledging aid to the region for reconstruction. Qatar, the United Arab Emirates (UAE), and many other Arab nations appeared poised to assist the region without the need for intervention by organizations like the World Bank or International Monetary Fund (IMF).
Interest rates for home loans, junk bonds, and several other financial products have fallen while the Federal Reserve hints at expanding the monetary base further. Even as several economic indicators show a slight resurgence, mortgages declined alongside Treasuries due, in part, to a slump in home buying.
