Category: News Desk

Spending Bill Passes as GDP Growth Slides


The United States Senate has increased the country’s debt ceiling and avoided a default while nationwide growth remains positive, but lower than previous readings.

GDP growth fell to 1.5% in the third quarter from 3.9% in the second quarter, a slight disappointment from 1.6% growth estimates. While still positive, the sharp deceleration in economic growth suggests that the ongoing economic recovery in the United States is not as strong as some economists had previously predicted, and may indicate the beginning of a slowdown that leads to a recession.

Federal Reserve Keeps Rates on Hold


The Federal Reserve is leaving low interest rates in place as it sees weak job growth and moderate economic improvement throughout America.

The decision by the Federal Open Market Committee comes a month after a previous decision to keep interest rates at historic lows despite broad expectations of a September interest rate hike. Expectations for a rate hike in October remained minimal, but the Fed’s comments on Wednesday afternoon encouraged a number of analysts and economists to predict a jump in rates in December.

India Jumps 12 Spots in World Bank’s Ease of Doing Business Rankings


Almost every nation covets a higher spot on the World Bank’s ease of doing business list. Higher ratings represent the capacity to attract and maintain foreign investors and the resulting economic boost they bring with them. This year, India has done the nearly unthinkable, jumping 12 spots up the rankings from 189 to 130.

South Korean Economy Rebounds in Third Quarter


The South Korean economy rebounded from July to September, expanding 2.6 percent after struggling with a deadly outbreak and a sluggish economy, according to AP. The growth was steered by recoveries in consumer spending and construction, but the economy suffered a decline in exports due to a lack of demand from China. The Q3 growth rate marks the fastest performance in South Korea in over five years.

China Rate Cut Fuels Global Stock Surge


After soaring on Friday, global equities continue to roar this week after China’s decision to cut interest rates for the sixth time in a year.  The People’s Bank of China announced a 25 bp interest rate cut, down to 4.35% for one-year durations. The purpose of the move is to help China reach its 7% growth target for 2015, after official figures showed 6.9% GDP growth in the 3rd quarter of 2015.

OECD Praises Latvian Reforms, Doubts Enforcement


When it joined the OECD, Latvia’s government was lacking in strong legal practices. Since then, the small European nation has greatly improved its laws, at least on paper, including joining the Organization for Economic Cooperation and Development’s (OECD) anti-bribery convention in 2014. While the OECD was quick to praise Latvia for its reforms, it was equally quick to raise doubts about the country’s ability to actually enforce these new policies.

New Liberal Government Elected in Canada


Conservative Prime Minister Stephen Harper was voted out of office during October elections, including many Parliament officials. Liberal Party leader Justin Trudeau, a former teacher and seven-year Parliament member, was elected prime minister. Members of his party won 184 national seats, comprising a new majority in Parliament.

Housing Starts, Holiday Sales Hopes Point to Resurgent U.S.


Despite growing concern over America’s economic growth, above expectations housing starts and bullish forecasts for holiday retail sales indicate underlying strength in consumer demand.

World Bank: Global Poverty End in 15 Years


The World Bank said this week that the world is capable of ending global poverty in the next 15 years, but described this action as “extraordinarily difficult.” If the nations of the world can band together in making difficult decisions to enact growth-stimulating reforms they could eradicate poverty.

Singapore Averts Recession in Third Quarter


The service sector is primarily responsible for a 0.1-percent growth rate in the third quarter, counterbalancing setbacks in manufacturing output, according to the Associated Press. The Monetary Authority of Singapore intends to lower the value of the Singapore dollar to boost exports.