Five years ago, a number of global powers struck a deal to overhaul the way the International Monetary Fund (IMF) conducts business. This week the IMF officially approved those governance overhauls and put the agreement into action, giving emerging economies more of a say in its operations. The agreement has been dubbed the “quota reforms.”
Despite efforts from the Federal Reserve to drive interest rates higher, lower expected borrowing costs and sliding inflation are lowering Treasury yields and may make mortgages cheaper. Mortgage applications rose as interest rates fell, according to a new report by the Mortgage Bankers Association (MBA), which noted a 6.2% increase in total mortgage applications from the prior week.
Norwegian officials met earlier this week to assess the state of Western Europe’s economy and Norway’s struggle in a low-priced oil market, according to Bloomberg. Leaders are choosing to highlight the positive aspects, which have enhanced Norway’s growth, such as a weaker kroner, increased stimulus, and low interest rates. Norway has a massive oil fund that sustains the welfare system, but the government is only allowed access to the fund’s investment returns.
The International Monetary Fund’s oil prices have tumbled and show no signs of immediate improvement, particularly as once embargoed Iranian oil begins flooding into the market place this year; officials at the International Monetary Fund (IMF) and the World Bank are preparing for the worst.
With oil falling below $30 again, the Export-Import bank has moved in an effort to help small energy companies avoid default. The bank announced its efforts to work with businesses to fight the fall in oil prices and the concurrent revenue decline. Speaking to CNBC, an American financial cable news channel, Ex-Im Bank Chairman Fred Hochberg said the bank has committed itself to making sure that smaller companies have the liquidity and financing necessary to avoid default.
According to Kenya’s central bank, the current account deficit dropped to 8.5 percent of GDP in 2015, a further fall from 10.4 percent in 2014, and the deficit could grow smaller for 2016, notes Reuters. Such factors as infrastructure spending and lower oil prices have bolstered the economy, and the central bank stabilized the banking sector after one of its banks collapsed. Overall, the economy expects to grow 6.5 percent in 2016.
Those familiar with the history of the World Trade Organization (WTO) may also recall its long-stalled negotiations over the Doha Development Agenda (DDA or simply “Doha). Last month, a bloc of developed nations led a charge to finally dismantle those talks and allow the WTO to move forward on addressing different agendas. While this call to new action has received challenges by developing nations — led chiefly by India — the United States and the European Union have both called for the WTO to start work on “new issues” pertaining to international trade.
A leading economic indicator suggesting Texas’s economy is suffering an aggravated decline on the falling price of oil left most investors undeterred from staying with U.S. stocks. The monthly Texas Manufacturing Outlook Survey showed a sudden and unexpected decline in activity, falling to a sharp contraction because of weak demand.
According to data released Monday, general business activity for the state of Texas fell -34.6 in January, which constitutes a worse forecast than analyst expectations, according to Business Insider. The Texas economy has suffered immensely due to the fall of low oil prices, including new regulations that hamper economic output. Experts believe a crude price correction waits on the horizon in 2016, but such a forecast remains uncertain.
By 2030, the world will invest an estimated $57 trillion in infrastructure improvements. Many of these improvements will be made by way of what is known as a public-private partnership (PPP), in which governments will partner with private sector interests. This allows a government to leverage the expertise and capabilities of the private sector to achieve public policy goals. However, these partnerships do not always go entirely smoothly, often hindering progress and leading to expensive disputes.
