Category: News Desk

Finance Dominates U.S. GDP Growth


Finance and insurance is seeing the largest increases in its contribution to America’s GDP, largely due to more Federal Reserve banks and use of credit in America and in foreign markets.

Finance and insurance saw a 12.4% increase in its value as a contribution to GDP in the second quarter of 2015 after falling 3.8% in the first quarter. The Bureau of Economic Analysis attributed the growth to “an increase in Federal Reserve banks, credit intermediation, and related activities.”

Myanmar Opposition Gains Advantage during Election


Myanmar’s recent held the freest in the nation’s history, and oppositional party, the National League for Democracy, expects to gain the majority, according to CBS. However, only a certain portion of the population is eligible to vote, and Myanmar’s sizeable Muslim minority, the Rohingya, have largely been ostracized from the process. They will announce results on Monday.

OECD Warns that Greek Tax Woes Could Be Enduring


Greece remains in a precarious financial situation years after the global economic recession rocked its economy. As a result, Greece is currently working to obtain an additional two billion euro bailout to help keep its government and public services running. However, the Organization for Economic Cooperation and Development (OECD) has warned that without making systemic changes to the nation’s tax collection efforts, these funds could be lost and leave the nation without the means to repay.

Chinese Stocks Surge as Economy Continues to Weaken


Chinese stocks are no longer in a bear market, having risen 20% from their lowest point in August. At the same time, more indicators suggest that China’s economic growth is still worsening, with the threat of growing poverty likelier in the hardest-hit regions of the country and possibly throughout the continent.

The Shanghai Composite Index rose 1.8% as rumors of growing government support for the falling stock market lifts prices, helping most mainland indices rise in end-of-week trading.

Mongolia Suffers from China Slowdown


Mongolia plunges further into an economic crisis, stemming from lacking Chinese demand and falling commodities prices, according to Bloomberg Business. The government announced emergency austerity measures that would consolidate government departments and cut various public-sector jobs. In 2014, over 80 percent of Mongolia’s export sector comprised of commodities going to China, and the Chinese provide 30 percent of the nation’s imports.

Brazil Needs New Economic Measures to Protect Environment According to OECD


Although Brazil has greatly improved its impact on the environment since 2000 (cutting deforestation and reducing its carbon footprint by 40 percent), the Organization for Economic Cooperation and Development (OECD) warns that much more is needed to reach environmental sustainability.

American Trade Deficit Falls as Private Sector Jobs Rise


The trade deficit in the United States fell by $7.2 billion while employment rose due to increased business activity.

America’s total trade deficit for goods and services fell to $40.8 billion in September after spiking in August, while exports rose by $3 billion from the prior month. The Bureau of Economic Analysis also noted a fall in imports, with $4.2 billion less goods and services brought into the American economy in September, a decrease of 1.8% from August.

Scottish Economy Falls Behind Rest of U.K.


According to the University Fraser of Allander Institute, Scotland’s economy will grow to 1.9 percent for 2015, a downgrade from a previous estimate of 2.5 percent. Scotland will continue to fall in 2016, but analysts expect growth to increase to 2.2 percent and eventually surpass the rest of the U.K. in 2017.

Eurodad Identifies Surprising Haven Nations for Tax Evasion and Money Laundering


The European Network on Debt and Development (also known as “Eurodad”), a network of NGOs, has issued a recent report identifying European nations that have served as havens for tax evasion and money laundering. According to the report, Germany, Luxembourg, and Spain are among the most egregious offenders.  By turning a blind eye, they support “an unjust global tax system.” The report went on to say that these nations “offer a diverse menu of options for concealing ownership and laundering money.”

World Bank Arbitration Panel Orders Ecuador to Pay $1.8 Billion to US Company


The World Bank’s arbitration panel has ordered the Latin American nation of Ecuador to pay $1.8 billion (plus interest) to an American oil company Occidental Petroleum for cancelling a contract. Occidental sued Ecuador for $3.37 billion in May 2006, one day after it received notice from Ecuador regarding the cancellation of a contract to extract 100,000 barrels of oil a day from Ecuador’s Amazon basin. That amount equates to about 20 percent of Ecuador’s output of oil.