Category: News Desk

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.

Iranians Frustrated with Government over Sluggish Economy


Iranians grow more impatient as unemployment and low-wage jobs burden the population, according to The Guardian. Despite the Iran nuclear deal, many officials believe it may not be enough to turn things around economically. In October, ministers from defense, industry and welfare sent a public letter to President Hassan Rouhani, warning him that current circumstances could lead to an economic crisis.

According to government data, 23 out of 64 million Iranians are unemployed, with seven million out of the 23 million stuck in low-wage jobs that do not yield a suitable living.

Manufacturing Rout as U.S. Factory Orders Weaken


Fewer buyers are interested in American-made goods even as factories find it more expensive to hire workers.

Factory goods saw declining demand, with new orders down 1% in September after falling 2.1% in August, according to the Commerce Department. That August decline is after a downward revision as analysts saw orders even weaker than previously estimated.

Record Breaking Reserves Mask Pakistan’s Actual Economic Situation


Pakistan has reached record levels of foreign-exchange reserves, reaching the equivalent of $20 billion US dollars. However, the International Monetary Fund (IMF) fears this is actually hiding economic weaknesses that will probably force the nation to request more aid from the IMF in the not too distant future.

U.S. Manufacturing Slows as Construction Flatlines


American manufacturing activity is growing at a slower pace, while deliveries to suppliers are slowing and construction remains near flat.

Turkish AKP Party Gains Parliament Majority during Snap Election


The AKP won over 300 seats in parliament, allowing the party to regain single rule that was lost over the summer. However, the majority parliament is not enough for President Tayyip Erdogan to change the country’s constitution and amass more executive power. In response to the victory, the nation’s stock index gained 5.0 percent, and the Turkish lira jumped 3.6 percent.

ECB Raises Eurozone Deflation Concerns


As inflation rates in the Eurozone fall to zero, the European Central Bank is bracing for deflation in early 2016.

ECB President Mario Draghi said in an interview Saturday that the ECB is bracing for the European Union’s low inflation rate to turn negative. “We expect inflation to remain close to zero, and maybe even to turn negative, at least until the start of 2016,” Draghi said.

Mozambique Economy Set to Improve Next Year


According to data from the International Monetary Fund, Mozambique’s economy will grow 6.5 percent in 2016, as natural gas projects will boost the economy next year, according to Reuters. The economy was set to expand sooner if not for the delay of natural gas investments. The nation’s central bank expects 7.0-percent growth in 2015, but the government expects a target of 7.5 percent.

World Bank Enters into $200M Deal with Seven Energy


Nigerian oil and gas company Seven Energy International Limited (Seven Energy) announced a $200 million (USD) deal with the World Bank related to the development of infrastructure development critical to Nigeria’s gas industry.

British Economy Slows Amid Chinese and Global Downturn


With the exception of such sectors as agriculture and services, the overall economy contracted, partly stemming from sluggishness in the world economy, according to the New York Times.

The economy grew 0.5 percent in the third quarter, a slowdown when compared to 0.7 percent seen from the previous quarter. Economists expected at least 0.6-percent growth. The drop in growth may cause Britain’s central bank to think twice about raising interest rates in the near future.