The U.S. government’s budget deficit shrank to its lowest amount in 8 years, thanks mostly to a record amount of tax revenue. Total tax receipts rose 7.6% while outgoings rose 5.2%, causing the deficit to fall to its lowest amount since the global financial crisis. The current deficit has fallen to $438.9 billion for the 2015 fiscal year, a 9.2% decline from the prior year.
Egypt has been in talks with the World Bank in an effort to obtain a $3 billion loan. The North African nation needs the funds to support its budget according to Finance Minister Hany Kadry Dimian.
On Wednesday, the Egyptian government announced that it would receive $3 billion from the World Bank over the coming three years. However, the government later clarified that statement, indicating that the deal was still in negotiations.
According to the latest data, Vietnam’s economy received a boost from lower energy costs and increased foreign investment. The nation’s central bank is also well situated in commencing more easing strategies in the event of an economic downturn. Vietnam’s central bank devalued the dong, increasing exports and foreign investment.
Imports into China fell for the 11th month in a row, raising concerns that Chinese growth is worsening. Imports into China fell 17.7% in local currency terms in September, acceleration from the 14.3% decrease in August. China’s trade surplus rose to 376.2 billion yuan, or about $59.5 billion, above expectations. However, China’s weak trade surplus was worsened by a 1.1% decline in exports, although that was better than the 6.1% decline seen in August.
The Organization for Economic Cooperation and Development (OECD) warned countries trying to spend their way out of crisis that they risk becoming stuck in perpetual economic malaise. The OECD said central banks were running out of room to boost economies, and fears this could become particularly problematic in the event of a sharp financial slowdown.
Angel Gurria, the Secretary General of the OECD said, “Countries that say: I’ll spend my way out of this third slump. I say: no you won’t, because you’ve already done that, and you ran out of space.”
The International Monetary Fund projects that Thailand’s economy will expand by 2.5 percent in 2015, as the Southeast Asian country contends with military rule and a turbulent economy. The IMF also cut growth from 4.0 to 3.2 percent for 2016.
American companies avoid paying taxes by holding over $2 trillion in assets outside of the country; a new study shows.
A total of $2.1 trillion are abroad, according to a report co-authored by Citizens for Tax Justice and the U.S. Public Interest Research Group Education Fund. This money is largely held abroad to avoid paying taxes on corporate profits in the United States, helping companies escape paying about $620 billion to the U.S. government.
On Monday, October 05, 2015, the United States and 11 other Pacific Rim nations reached a final agreement on the largest regional trade accord in history. Now, the treaty needs approval from Congress, and many analysts fear this could be the toughest fight of President Obama’s final year in office.
According to Reuters, Britain’s economy suffers from an unstable world market and lower consumer spending. Manufacturing capacity decreased as well, especially in major sectors of the economy. In light of the grim news, economists do not expect the Bank of England to raise interest rates in the short-term.
Stocks in Europe rose Monday morning, while emerging markets capital losses continue in the wake of falling commodity prices and lowered growth expectations.
The rise in stocks in Europe was largely due to weak economic data, which has fueled expectations of an increased quantitative easing program from the European Central Bank. ECB President Mario Draghi has recently hinted that the central bank’s current stimulus program, which purchases over $1 trillion of bonds in public markets, may extend to encourage inflation.
Europe’s Low Growth
