Americans are jumping into the housing market as interest rates on mortgages plummet, and businesses across the country are betting on more demand from consumers. The Census Bureau reported that privately owned housing starts rose 1.8% year-over-year in January to 1.099 million, with single-family housing starts accounting for two-thirds of the total.
Recent data suggests that Brazil’s economy contracted for the tenth consecutive month in December, and Standard & Poor downgraded the South American nation’s credit rating further below junk status, according to the New York Times. Brazil has suffered from lower commodity prices, including mismanagement on the part of President Dilma Rousseff, and a loss in investor confidence. Experts believe the country will shrink 3.0 percent in 2016.
The recent Zika virus outbreak has done more than terrify millions of people around the world; it has had an effect on global economies. Some countries have had to divert meager means to try to combat the outbreak. Others have lost significant amounts to declining tourism rates as visitors fear venturing to nations hardest hit by the outbreak.
Signs of an improving job market in the United Kingdom are growing. Incomes are up and jobless claims are down, while the unemployment rate remains at its lowest point in a decade. According to the Office for National Statistics, unemployment remained at 5.1% in December, despite expectations that unemployment would fall 10 basis points to 5%.
Ratings firms believe North Korea’s missile launch and nuclear testing will have a minor impact on South Korea’s economic output. Ratings agencies will not adjust South Korea’s credit rating in wake of the North Korean incident, believing that the economy will remain in stable condition.
However, the South Korean won is the worst performing currency in Asia so far in 2016, and investors are looking for future rate cuts from the nation’s central bank.
For months, Great Britain has been talking about withdrawing from the European Union (EU). The matter is up for full debate, and shall be put to a referendum. This has left many to ask how the British could exit (or “Brexit”) the European Union? Would it be legally possible? After all, no other nation has left the EU.
The Department of Labor has asked for $12.8 billion in discretionary funding on top of $50.7 billion in other mandatory funding to feed training jobs for workers and other programs. The Department of Labor has asked for the extra $12.8 billion to fund a variety of apprenticeship and worker-training programs, as the agency acknowledges Americans are struggling to compete in the workforce.
In an attempt to curb radicalization, Kenyan authorities plan to build a separate prison for jihadists to prevent the spread of extremism throughout the prison system, according to Reuters. Security has been an increasing concern for Kenya in recent years, especially as Somali terrorist organization, al-Shabaab, wreaks havoc throughout the East African nation. Many officials fear that terrorism will destabilize many parts of the country and scare away foreign investors.
The Organization of Economic Cooperation and Development (OECD) recently conducted its first assessment of Costa Rica. The results of the assessment were announced on Tuesday in San Jose by OECD Secretary-General, Angel Gurria, and Costa Rican President, Luis Guillermo Solis.
While the OECD lauded Costa Rica for making impressive economic, social, and environmental progress, it warned that further action is still required. The OECD called for institutional and policy reforms aimed at creating stronger and more inclusive growth.
The continued fall in oil prices is being felt in several parts of the global economy, with many negative results causing financial turmoil.
Rising Default Rates
