German manufacturing fell 0.8 percent in March compared to February, and output amended at seasonal and inflationary levels amounted to a 0.5-percent fall in March, according to a report from Germany’s Economy Ministry. Experts believe the fall is attributed to weakness in the world economy, including the fallout between Greece and European lenders.
When he took office as President of Indonesia, Joko Widodo vowed to lift the largest economy in Southeast Asia to 7 percent average annual growth during his five-year term. However, since taking office in October, the economy has actually slumped and contracted, showing growth of only 4.7 percent in the first quarter of 2015. Thus, in the first week of May 2015, Widodo summoned his economic ministers to discuss the situation. To his surprise, his ministers were not the only ones to arrive.
China has cut interest rates for the third time in just six months as the country struggles with falling growth rates. The People’s Bank of China cut interest rates to just 5.1%, a 25 basis point decline that is aimed at encouraging more lending, more borrowing, and more investment.
Argentina’s economy shows slight improvement as more investors buy up the nation’s debt and become more bullish on Argentine stocks. The election process is set to take place in October 2015, and many hope a change in leadership would improve the economy.
For many Americans, the value of the dollar in trade terms is a point of pride. Older generations remember a time when they could buy things for a fraction of what they cost today. Many view a strong dollar as a positive condition and something for which the nation should strive.
A decisive victory by the Conservative Party in Great Britain may portend greater cost cutting to social services and lower corporate taxes for the UK.
While the Conservatives gained a majority with over 327 seats, the Liberal Democrats suffered a fall from grace as they lost about 30 seats in the House of Parliament. The Labour Party, with over 230 seats, will be the second largest party and the opposition to the Conservatives, but they will also have to contend with the Scottish National Party, whose representation in the Parliament surged to at least 56 seats.
Godrej Group chair Adi Godrej believes that India’s current government can lead India in becoming the world’s most powerful economy. Godrej believes now gone regulations hampered India’s progress. Godrej is the 73-year-old patriarch of his company, specializing in such areas as security, appliances, real estate and agriculture. The firm operates in 28 countries, with plans to venture into emerging economies.
The Danish government announced plans to remove legal requirements that certain vendors must accept cash. The plan would allow gas stations, clothing stores, and restaurants to stop accepting cash in favor of purely electronic transactions facilitated by payment cards or other online payment tools.
Indonesia’s independent central bank is struggling to maintain its tight monetary policy to combat rising prices.
Bank Indonesia Governor Agus Martowardojo has maintained that the country needs a high interest rate, despite a regional slowdown tied to falling demand in China. Pointing at high inflation rates, the central bank has said it needs to maintain high interest rates to fight inflation and the country’s sizeable current-account deficit.
Nigeria remains in a tight spot as low oil prices force officials to burn through borrowing reserves to pay salaries. Nigeria derives 80 percent of its income from oil revenue, but it has seen a 50 percent decline in oil income. Further, the Nigerian naira has lowered in value despite efforts from the country’s central bank to support the currency with billions of U.S. dollars.
