The Eastern European country of Serbia is trying to make the difficult transition into the digital economy model of the 21st Century. After decades under communism, the nation has struggled to expand its economy through traditional goods and services. Now, it wishes to take on the digital marketplace, seeing that as a way to quickly grow in a modern world.
The Federal Reserve warned that continued market volatility was threatening America’s economic recovery. Janet Yellen said before markets opened that the Fed continues to look closely at market volatility and would raise interest rates gradually, with the pace depending on market conditions. Equity futures rose on the news.
A report from the Chamber of Mines highlights that copper production in the Democratic Republic of Congo dropped to its lowest level in six years in 2015, and, according to Reuters, 2016 could yield lackluster results. The Central African country relies on mining for 20 percent of GDP, with such minerals as cobalt and copper comprising over 70 percent of exports alone. The government expects the economy to improve in the coming years as new mining operations come online.
The International Monetary Fund has been in talks with the Ukraine regarding a $17.5 billion bailout. That bailout was in jeopardy due to rampant corruption among those in Ukraine’s capital of Kiev. This week, after sharp warnings from the IMF, the Ukraine has vowed to pursue reforms aimed at cleaning up its corruption problems.
President Muhammadu Buhari has approved a measure that consolidates state bank accounts under the central bank, according to Reuters. The move not only reduces the amount of borrowing, but also hampers graft and corruption by allowing the government to keep a watchful eye on the treasury. Nigeria is an oil-producing nation that has suffered immensely due to lower oil prices, forcing the government to make reforms.
William White is a senior adviser to the Organization for Economic Cooperation and Development (OECD), and heads the OECD’s Economic and Development Review Committee. He is making waves with a recent, fairly scathing, critique of various nations’ central banks. According to White, Central banks’ excessively liberal monetary policies are putting the global economy at risk, and he wants things to change.
More job openings are being posted as companies look for new workers, yet job growth in the private sector remains weak and wholesale goods sales begin to decline. The Department of Labor saw 5.6 million job openings in the month of December, versus expectations of 5.4 and 5.3 in November. The 4.9% rise month over month in job openings is above the historic growth rate, while the total number of job openings remains far above the post-recession average.
Equity markets struggled Monday amidst two reports pointing to a sluggish and weakening job market in America. U.S. nonfarm payrolls rose by just 151,000 versus expectations of 190,000 in January, according to a report by the Bureau of Labor Statistics (BLS). The weakness was broad based and was reflected in weak labor force participation, which remained little changed at 62.7%, according to data compiled by the BLS.
Recent data reveals that Malaysian exports for December grew slower than analyst predicted they would due to weaker commodity demand on the world market, according to Reuters. Natural gas output dropped as well, but experts believe government policy and higher domestic demand could compensate for lacking exports. The government also adjusted its budget late last month in recognition of lower oil prices.
Japan and Iran have entered into a bilateral investment treaty and an agreement for a $10 billion debt guarantee for Iran. The move could create an enormous inflow of Japanese investment in the Middle Eastern nation. The Japanese Ministry of Economy, Trade, and Industry and Japan’s Minister for Foreign Affairs, Fumio Kishida, approved the agreement.
These officials welcomed the signing of the investment treaty, and feel the $10 billion debt guarantee will allow Japanese companies to invest without significant risk.
