For years, the Iranian economy has been slowed thanks to crippling sanctions imposed by the international community designed to discourage Iran from pursuing its nuclear ambitions. On Tuesday, the Middle Eastern nation finally came to terms with international negotiators working on a long-anticipated treaty regarding giving up the development of nuclear weapons in exchange for lifting economic sanctions.
American consumers are spending less on retail products and services, as confidence in the economic recovery weakens and consumers keep their pocketbooks closed.
In total, retail sales fell 0.3% from May to June on a seasonally adjusted basis, despite expectations for a rise in spending. The Census Bureau released a new report that showed total retail spending has fallen slightly, although it remains up very modestly on a year-over-year basis. Compared to June 2014, retail sales were up 1.4% this year, although that increase was much weaker than economists’ expectations.
In response to the Chinese and Greek crises, the Russian government is keeping a tighter lid on its currency, according to Bloomberg. The Bank of Russia purchased $200 million in daily reserves to increase the total amount to $500 billion, which may take anywhere from five to seven years, and Russia has only purchased $7.4 billion thus far. Finance Minister Anton Siluanov stated that Russia is prepared to prevent any volatility in the nation’s exchange rate.
China saw exports rise in a sign of improving global economic conditions, but imports fell just as China hopes to pivot towards a domestic demand-driven economy.
The likelihood of Greece leaving the Eurozone increased considerably as Germany hinted at forcing Greece to leave the Eurozone for a fixed period.
According to a recent report from Puerto Rico’s Institute of Statistics, groceries are 21 percent more expensive than the United States, according to The Guardian. The cost of living is also 13-percent higher than many urban areas in the United States. The commonwealth’s high living costs does not bode well for an economy that cannot pay off its debts and is on the verge of bankruptcy. The economy is $72 billion in debt, and the governor has stated that the debt is not repayable.
While the downturn of the Chinese and Greek economies has taken center stage, some international economic watchdog groups fear the United States’ economy may also be in trouble. Though the U.S. economy has shown signs of growth after a slight setback in the early part of 2015, the Organization for Economic Cooperation and Development (OECD) has released its latest figures for national indebtedness, and the numbers do not appear promising for the world’s largest economy.
Unemployment claims jumped in the United States while the Federal Reserve and International Monetary Fund express concerns that global growth is slowing.
The Department of Labor announced Thursday that seasonally adjusted initial unemployment claims rose to 297,000 for the week ending July 4, up 5.3% from the prior week. The four-week moving average for unemployment claims rose to 279,500. The rise was far above most analysts’ expectations.
President Joko Widodo believes his country is transitioning from an economy based on commodities to one centered on production and investment. The president’s address comes on the heels of slow growth for the Southeast Asian country, which saw 4.7-percent expansion in the first quarter of 2015, the slowest growth rate since 2009.
In late June, the US agreed to enter into the Trans-Pacific Partnership Agreement (TPP). The Agreement is the largest trade treaty entered into by the United States in more than two decades. It encompasses a dozen Pacific nations and could equate to billions of dollars for the US economy as well as a boost to the world’s economic health.
Enormous Agreement
