The Central Bank of Russia slashed its crucial interest rate to 11.5 percent on Monday in order to stimulate economic growth. The move is not a repeat of previous drastic basis cuts, but some experts were on the mark when they believed the bank would reduce the rate by a full percentage. Russia cut rates in May from 14 to 12.5 percent, and economists expect the bank to continue cuts but on a less severe basis.
Egypt’s New Suez Canal opens on August 6, 2015. The original Suez Canal has been a huge source of income to the nation over the years, and in a time of sagging economic performance, the opening of a new canal may be a crucial boost.
A sluggish economic recovery in Europe is adding pressure to talks between Greek and German policymakers, while to the west and east of the continent signs of economic recovery are mounting.
After years of recession, California is gaining growth due to expansion in such sectors as IT and engineering. According to the U.S. Bureau of Economic Analysis, the state’s GDP reached $2.3 trillion in 2014, rivaling other nations such as Brazil.
Although France has suffered from an under-performing economy for decades, some indicators seem to hint at the nation becoming a superior economic performer in the not-too-distant future. This data runs contrary to the assumptions of many in the financial sector, particularly given the nation’s sluggish performance to date, but the evidence appears compelling.
South Korea is plagued with a rising death toll in its third week as the MERS virus spreads throughout the country. Analysts believe the outbreak will worsen the economy, as tourists stay away and locals remain at home. South Korea’s economy underwent turmoil before the outbreak, due to low exports and consumption.
The United Kingdom is seeing more demand from foreigners, helping the country’s trade deficit to fall by nearly $2 billion.
The UK trade deficit fell by 1.2 billion pounds, or about $1.9 billion, in April of this year. That is a fall of over 50% from the prior month, according to the Office for National Statistics, as consumption was offset by greater demand for British services.
In the wake of the 2008 Global Recession, bonds became a favorite investment. Their safe returns on investment offered those contemplating retirement the type of security that they no longer felt banks could offer after a spate of failures. This led to the unusual situation of negative yields, where bonds sold for more than their yield values simply because investors wanted a way to safeguard most of their money.
After the Global Recession in 2008, Iceland suffered enormous losses in its financial sector. Loose regulations and lack of oversight led to a situation in which three failed banks had more than 10 times the Icelandic economic output in assets at the time of their collapse. To prevent a complete tailspin, the government froze foreign investments in the country and reneged on guarantees to pay back savers from the UK and the Netherlands.
Further hints are surfacing that the job market in the United States is recovering.
The total number of job openings and overall demand in hiring new employees has grown at a strong pace. According to a new study by the Bureau of Labor Statistics, the total number of job openings rose to 5.4 million by the end of April, the highest number recorded since the BLS began tracking.
