World Economy News

China factories grapple with soaring prices as pollution crackdown bites

Chinese exporters at the country’s biggest trade fair are more optimistic about global demand now than six months ago but Beijing’s crackdown on pollution is ramping up costs and product prices, hurting smaller factories and foreign buyers. At the Canton Fair where some 25,000 manufacturers are showcasing products from industrial engines to egg-cracking machines, the […]

Nafta Partners Prolong Talks Into Next Year

Senior U.S., Canadian and Mexican officials, citing “significant conceptual gaps” in talks to update the North American Free Trade Agreement, say they won’t meet their end-of-year deadline for the negotiations. U.S. Trade Representative Robert Lighthizer, reading from a joint statement Tuesday in Washington, said the next round of talks will start in Mexico City on […]

What went wrong with the Indian economy?

The Indian economy started going downhill from the June 2016 quarter, as chart 1 shows. What are the reasons? It wasn’t because of low investment—investment as a proportion of gross domestic product (GDP) has been falling since 2011-12. It wasn’t sluggish exports—export growth has either been negative or in the low single digits since 2012-13. […]

Greece, in recession again last year, eyes recovery in 2017-18

Greece fell into recession again last year, confounding its international creditors who had predicted some growth after years of budget austerity and bailouts. The country’s leading economic think tank, meanwhile, said there would be growth this year – but not as much as the government expects. The economy contracted by 0.2 percent in 2016, statistics […]

Bank of England’s Ramsden says in no hurry to raise interest rates

New Bank of England Deputy Governor Dave Ramsden said on Tuesday he was in no hurry to vote for an interest rate hike because he saw little sign of inflation pressure building in Britain’s labour market. “Measures of domestically generated inflation are consistent with there still being some slack in the economy,” Ramsden said in a series of written […]

Eurozone Inflation Steady At 1.5%

Eurozone inflation held steady in September, as initially estimated, final data from Eurostat showed Tuesday. Inflation came in at 1.5 percent in September, the same rate as seen in August. Inflation continues to stay well below the European Central Bank’s target of ‘below, but close to 2 percent’. Month-on-month, consumer prices climbed 0.4 percent in […]

UK inflation at highest since April 2012

The UK’s key inflation rate hit its highest for more than five years in September, driven up by increases in transport and food prices. The Consumer Prices Index (CPI) climbed to 3%, a level it last reached in April 2012, and up from 2.9% in August. The pick-up in inflation raises the likelihood of an […]