Economists are beginning to worry that previous optimism about the U.S. economic recovery was premature. A number of economic indicators suggest an economic slowdown, as productivity falls, factory orders decline, jobless claims rise, and employers cut more jobs at the beginning of 2016.
Less Jobs, Disappointing Jobless Claims
The Angolan government faces a financial crisis as lower oil prices shrink revenue streams, according to AFP. The Southern African country’s currency, the kwanza, receded 35% in value in 2015 against the dollar, and the central bank devalued the kwanza by 15% this year to bolster exports. Angola holds some of the most precious natural resources on the planet, but its citizens suffer from high infant mortality rates and severe poverty.
While many nations in Europe have been experiencing healthy levels of economic growth over the last few years, there are a few notable standouts. Portugal is one nation with such a dubious distinction. Unfortunately, the International Monetary Fund (IMF) warns that, despite its economic growth, Portugal’s condition will not improve until the country gets a handle on its debts.
Americans are buying fewer houses even as interest rates fall, and demanding fewer services even as job gains strengthen. The dynamic between lower demand for homes and services and lower interest rates and more job gains is confounding economists, who expect a lock-step progression in which higher demand results in gains in both services and jobs. Yet the data is significantly more mixed.
According to the Organization of American States (OAS), Haiti may not settle a runoff dispute before the incumbent president’s term ends this weekend, as the Associated Press stated. Haiti scheduled a second runoff election in late January, but had to postpone the process due to violent protests. Haiti’s economy remains in tatters and has worsened since a large earthquake struck the Caribbean nation in 2010, killing tens of thousands of people.
It may seem the stuff of science fiction, but mining asteroids, other planets, and even our own moon is just around the corner. Unfortunately, privatization of these efforts has been largely impeded thanks to antiquated international laws created by the United Nations (UN) governing the exploitation of extra-planetary resources.
GDP growth has slowed significantly while increasingly more companies are going broke and Americans are spending less. According to the Atlantic Federal Reserve’s GDPNow forecast, expect to see 1.2% GDP growth in the first quarter of 2016, after seeing just 1% growth in the last quarter of 2015. This is a significantly lower rate of growth than the 2.0% growth seen in the third quarter, and a significantly lower level than most analysts had expected.
The Swedish government will decline thousands of refugee applications and deport up to 80,000 people—of the 160,000 refugees the country originally accepted—that sought asylum in 2015. Sweden is more welcoming to migrants than any other nation in Europe and provides new arrivals with social services that include language courses.
The International Monetary Fund (IMF) recently issued a warning to Saudi Arabia regarding its spending vis-a-vis its primary source of income. The major oil producer is feeling the pinch of lower global oil prices, and the IMF predicts years of higher taxes and low fuel subsidies for the Middle Eastern nation. Around the world, crude oil prices have fallen more than 70% over the last 18 months. As a result, a number of economically weaker oil-reliant countries will likely soon begin defaulting on national debts.
A little over a month after the Federal Reserve confidently proclaimed the economic strength of the U.S., several indicators are showing signs of a shrinking economy. Manufacturing activity continues to decline, marking the fourth month that U.S. manufacturing has weakened. According to the Institute for Supply Management, manufacturing activity fell from the previous month and is shrinking. The Institute for Supply Management’s (ISM’s) Manufacturing PMI fell to 48.2%, with employment and inventories contracting.
