On Friday (July 24), representatives of the member nations of the World Trade Organization (WTO) met in Washington, D.C. to finalize the terms of a new trade agreement to cut tariffs on $1 trillion worth of information technology products. The deal should generate over $1 trillion in technology related trade.
The Pakistani government remains optimistic, but foreign direct investment dropped 58 percent in 2014-15, according to the State Bank of Pakistan. Experts note that investors are beginning to regain interest in Pakistan, but the country remains on troubled waters. Chinese investment for 2015 came in at $229 million, which is three times less than the previous year.
Canada and Israel have long enjoyed a mutually beneficial trade arrangement. That relationship strengthened even further on Tuesday when the two nations announced a new free-trade agreement expected to facilitate the import of fish and baked goods to Israel and the export of farm products and wine. The new agreement has the formal title Canadian-Israel Free Trade Agreement (CIFTA).
The week saw a sudden calm in several markets as China showed signs of renewed economic strength and Greek banks reopened, but falling commodity prices have hurt export-driven economies’ currency values and future inflation expectations.
In Greece, banks reopened earlier this week after three weeks of closure. Controls on withdrawals remain in place, with Greeks limited to taking out 420 euros per week from their accounts, but the banks are open for business and relatively calm queues have appeared at most banks throughout the week.
According to a recent survey, South Africa’s business confidence index dropped 2.3 points in June, marking the largest decline in over 16 years. The economy is undergoing a productivity issue, especially in the wake of high electricity prices and numerous power outages. South Africa’s tourism index also dropped in the second quarter, due to new visa restrictions that are keeping many tourists at bay.
For the past six years, Nigeria has fought an ongoing battle against radical Islamic extremist group Boko Haram in its northern region. The insurgency aims to carve out a caliphate from the northern Nigerian territory. Nigerian forces have scored a number of key victories, indicating an end to the hostility may soon be a reality. Nevertheless, Nigeria continues its struggle and seeks to maintain order and smooth operation of normal social functions in the area.
Gold prices plummeted first in Asia and worsened later in trading in America on Monday as investor demand for the commodity evaporated.
The commodity’s price fell over 3% from last week’s levels on Monday, with many analysts predicting lower levels in the future. One investment bank released a note saying there are few reasons for investors to hold the metal, and that it remained overvalued relative to other commodities. Silver also fell in sympathy, although not as steep as gold.
Due to declining demand from Chinese and European markets, Singapore’s manufacturing base suffered in the second quarter, including the construction and service sectors. The overall economy grew 1.7 percent year-on-year, but shrank 4.6 percent quarter-on-quarter from April to June.
Despite months of concern, countless reports regarding the nation’s unlikely possibility for making repayment, and an enormous drag on the economy of Europe, Greece has officially paid back the International Monetary Fund (IMF).
After three weeks of closed banks and capital controls, Greek banks reopened on Monday to little fanfare and much foreign scrutiny. Greek banks opened and offered all banking services to customers, although capital controls remain in place. Greeks were limited to cash withdrawals of 420 euros per week, after 60 euro per day limits in place for nearly a month.
