On Wednesday, the World Bank released an Economic Update on Rwanda. The World Bank’s projection show economic growth of 7.4 percent for 2015 and 7.6 percent for 2016. Similarly, it anticipates a drop in the nation’s high poverty rates from 63 percent in 2011 to 54 percent by 2016. That would equate to one million people moved out of poverty over the last several years.
The Chinese economy is showing signs of renewed strength after aggressive stimulus efforts over the past year. China surprised analysts with a 7% annualized GDP growth and less housing price declines than expected.
According to the Bank of Korea, North Korea’s economy underwent 1.0-percent growth in 2014. Analysts expect a drought to hamper economic progress for 2015. North Korea does not release economic reports to the world, and South Korea’s central bank is the only organization that monitors the Hermit Kingdom’s progress.
According to the OECD Employment Outlook for 2015, member nations, when taken as a whole, are still experiencing alarmingly high rates of unemployment. Indeed, the OECD report points out that unemployment rates in many European nations still exceeds 11 percent, leaving 42 million people in OECD’s member states unemployed. While that is down from the 45 million in 2014, it remains 10 million higher than pre-Global Recession rates.
Major developments spanned three continents this week as the U.S. looks set to see a rise in interest rates, China’s imports continue to shrink, and European policymakers finally make a deal with Greece.
In the U.S., Federal Reserve Chairperson Janet Yellen clearly affirmed the likelihood of a rise in the central bank’s interest rate target later in 2015, despite several analysts arguing that a hike in 2016 is more likely.
The Canadian economy is on the brink of a recession, spelling trouble for Prime Minister Stephen Harper as he seeks a fourth term in office this year, according to Reuters. Currently, the New Democratic Party is taking the leading over Harper’s Conservative Party. Voting takes place in October.
While most think of environmental treaties as a positive turn for the world, a recent study indicates that these may actually be harmful to the developing economies of the world.
At her semiannual report to Congress, Yellen said that the American economy was showing signs of persistent strength. “Prospects are favorable for further improvement in the U.S. labor market and the economy more broadly,” she said, adding that low oil prices and increases in the employment rate were bolstering consumer spending. This rise in aggregate demand, she argued, would make a rise in interest rates appropriate later in the year.
While the euro has increased in value over the last year, news of financial troubles for Greece have led to heavy fluctuation in its value over the last six months. The trend toward a weaker euro may be bad news for other European nations, but may actually boost the German economy.
According to the International Monetary Fund (IMF), a weak euro and lower energy prices are actually supporting the German economy. This support, in turn, has given Germany the opportunity to bolster medium-term growth and reduce external imbalances, said the IMF.
As lawmakers attempt safeguard the banking sector from the effects of the Greek crisis, the Bulgarian parliament approved Dimitar Radev as the new head of the nation’s central bank, according to Bloomberg Business. Radev stated that his plan for preserving the banking sector includes three attributes: banking supervision, asset quality management and a bank-crisis management mechanism. The new governor will also support the government’s desire to join the European banking union. Radev was nominated by the GERB party, the nation’s primary ruling entity.
