The Organization for Economic Cooperation and Development (OECD) issued a report on member nation economic performance in the second quarter of 2015. Unfortunately, the numbers were not promising: it reveals that the combined economic growth of the OECD’s member nations fell to 0.4 percent in the second quarter of 2015.
Despite the troubled waters of the world economy, Germany continues to outperform its fellow EU nations, with consumer confidence, exports and public financing all on the rise. German GDP grew 0.4 percent in Q2, a rise from 0.3 percent from the previous quarter.
Growing consumer confidence in the United States was not enough to offset fears that the stock market is overvalued. Consumer confidence rose to 101.5, a tremendous rise from the prior reading of 90.9, according to The Conference Board.
In recent months, negative predictions for the Chinese economy filled the news, and less than stellar performance that seemed to prove those predictions correct. Many analysts had predicted that China might enter into an economic recession echoing the one that occurred in much of the world in 2008, but notably had a much less significant effect on China. Given China has the second largest economy in the world, such predictions have dire ramifications for the rest of the world.
Greek elections and Fed policy loom large over international markets, but the world awaits with anticipation as Chinese officials try to mitigate sluggish growth, according to Reuters. Analysts expect banking authorities to ease reserve requirements to invigorate lending throughout the nation. Overall, the government aims to achieve a growth rate of 7.0 percent for 2015.
Stocks around the world turned sharply south even as economic data from the U.S. showed strength.
The World Bank seeks to use its economic power to affect changes that can improve the environment. One recent push has involved setting a global standard regarding the practice of “flaring,” or burning off unwanted gas from oil wells.
By doing so, the World Bank hopes to end both a needless waste of resources and reduce the creation of greenhouse gasses. According to a report by the Associated Press, the World Bank’s executives hope to use their clout to influence the world’s largest oil-producing countries and companies to agree to the new policy.
Iraq’s war with Islamic militant group ISIS has taken a toll on the economy, with the Shiite government losing land to the terrorist organization. Further, the low-priced oil market hampers the government’s national budget. Almost 95 percent of the national budget derives from oil income.
Manufacturing is falling in parts of America and the trend may spread to the entire country, while in Asia Japan sees a fall in GDP and faster inflation.
In America, the Empire State Manufacturing Survey saw the index fall to -14.9, falling by over 50% from the prior reading. This was the lowest the index has been since 2009 at the height of the Global Financial Crisis.
Pakistan has worked hard over the last few years to rein in its deficit spending and improve its foreign exchange reserves, and the International Monetary Fund (IMF) says it is beginning to bear fruit. The IMF reviewed the nation’s financial policies and practices, including its economic reform program, and found that it had “significantly reduced near-term risks.”
