By YCharts, ContributorIn the five years through 2011 India’s economy delivered on its promise as an emerging growth bellwether, rising nearly 125%. But 2012 has been the year of the speed bump, with annualized GDP growth in India slowing to under 6% through the third quarter, while inflation has spiked to more […]
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Tag Archives: GDP
UK downgrades Q3 GDP growth to 0.9 percent
The growth in Britain’s economy for the third quarter has been revised down from 1 percent to 0.9 percent, the U.K’s official statisticians say.
The Office for National Statistics said Friday that the reduction in the rate of growth for the U.K.’s gross domestic product was caused by lower, revised estimates of output by the services industry and production industries including manufacturing. Construction activity was revised slightly higher.
Despite the revision, the third quarter was the U.K. economy’s best performance since the second quarter of 2010, when GDP also rose 0.9 percent. Third-quarter growth also brought an end to a shallow nine-month recession, Britain’s second downturn since the banking crisis in 2008.
Source: Fox World News
Finland lowers economic growth forecasts
Finland expects economic contraction this year and little improvement in 2013 as the export-dependent country continues to suffer from reduced demand among European trading partners.
The Finance Ministry says GDP is expected to decline 0.1 percent this year and rise only 0.5 percent in 2013, mainly because of growth in domestic demand. Growth will improve slightly to 1.7 percent in 2014, when trading partners in the 17-country eurozone are expected to keep struggling economically.
The ministry earlier predicted 1 percent growth this year and 1.8 percent in 2013.
In the report published Thursday, the ministry estimates export volumes this year fell 1.7 percent and would grow about 1 percent next year.
Finland fell into recession this year after economic output dropped by 1.1 percent in the second quarter.
Source: Fox World News
Cyprus parliament approves bailout-driven budget
Cyprus‘ lawmakers have overwhelmingly approved the 2013 state budget amid efforts to finalize a bailout deal with international lenders in order to rescue the country’s troubled banks and pay its bills.
The budget incorporates deep spending cuts and tax increases that were agreed in talks with the European Commission, the European Central Bank and the International Monetary Fund. Lawmakers approved about two dozen such measures in the days leading up to Wednesday’s budget vote.
Cyprus‘ €17.5 billion ($23 billion) economy is projected to shrink 3.5 by percent of gross domestic product and unemployment to reach 13.7 percent next year.
A draft version of the bailout stipulates spending cuts of 7.25 percent of GDP and a budget surplus target of 4 percent of GDP by the end of 2016.
Source: Fox World News
Czech parliament approves austerity measures
The Czech Republic’s lower house of parliament has approved unpopular austerity measures that had threatened to cause the downfall of the center-right coalition government.
In Wednesday’s 102-88 vote, lawmakers overturned the upper house’s veto to approve a 1 percent increase in the sales tax on retail goods and a 7 percent income tax increase for the highest earners.
The measures aim to bring the budget deficit below 3 percent of GDP and still have to be signed by President Vaclav Klaus.
The lower house first rejected the tax hikes in September after six rebel lawmakers from Prime Minister Petr Necas‘ conservative party voted against.
Necas resubmitted the measures to vote, linking them to a confidence vote. Three of the rebel lawmakers later resigned from parliament, making the measures’ passage possible.
Source: Fox World News
Dutch government's think-tank in recession call
The Dutch government’s financial think-tank has joined the central bank in forecasting a recession in 2013 as a result of waning global trade prospects.
The Central Planning Bureau Wednesday said the economy would shrink 0.5 percent, in contrast to its previous forecast of 0.75 percent growth. Last week the central bank predicted a 0.6 percent contraction, reversing its previous forecast of a 0.6 percent expansion.
Because the recession will likely dent tax revenues, both are predicting that the country’s budget deficit will be slightly above the 3 percent of GDP limit mandated by European rules.
Finance Minister Jeroen Dijsselbloem said Tuesday he was aware of the worsening projections but that he has no plans to alter the budget. The centrist governing coalition’s ‘austerity’ budget both increases taxes and cuts spending.
Source: Fox World News
Fitch affirms France "AAA" but no room left for slippage
Fitch Ratings stuck by its triple-A rating on France in a much-awaited review on Friday but warned that an expected peak in debt of 94 percent of GDP in 2014 was “at the limit” for a country with a top-notch credit grade.
Ireland imposes 6th straight austerity budget
Ireland‘s government has unveiled plans for €3.5 billion ($4.5 billion) in new taxes and spending cuts in the debt-burdened country’s sixth straight austerity budget. Finance Minister Michael Noonan says Ireland must keep slashing its deficits down to the eurozone limit of 3 percent of GDP. He says Ireland expects deficits of 8.2 percent this year and 7.5 percent next year, but only if the country can deliver stronger economic growth despite deepening cuts. His 2013 budget unveiled Wednesday includes a new property tax, higher taxes on the incomes of the most well-to-do pensioners, and €2 billion in cuts to government spending. Ireland has endured increasing austerity since 2008, when a credit-fueled property boom went bust. The government was forced to nationalize five banks and negotiate an international bailout.
Source: Fox World News
Finland’s economy slips into recession
Finland‘s economy has slipped into recession with a 0.1 percent drop in gross domestic product in the third quarter from the previous three months, as the export-dependent country continues to suffer from a drop in demand among European trading partners. Statistics Finland said Wednesday economic output fell 1.1 percent in the second quarter. That puts Finland in recession, commonly defined as two consecutive quarters of quarterly economic contraction. Consumer demand was up 0.8 percent in the third quarter but investments dropped by 1.1 percent. Compared with a year earlier, GDP was down 1.2 percent, with exports falling 1.8 percent. The conservative-led coalition government of Finland, a rich country with healthy finances, has warned it will need to help the economy and contain growing inflation as the European crisis hurts exports.
Source: Fox World News