Downside risks for the world economy are growing again

Well at least something is growing! But this gloomy prognosis comes not from me, although I agree with it, but from the Trade and Development Report 2012, which was published last week by the United Nations Conference on Trade and Development (UNCTAD). The Report highlights the immediate problem of the developed countries as the ability to return to a normal … Continue reading

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No recovery in sight for Labour markets

This is the view of the global employment situation according to the International Labour Organisation (ILO), in its World of Work Report 2012: Better Jobs for a Better Economy”. The report says that there are still 50 million less jobs available than were there before the global crisis, and warned that an even more problematic job phase was emerging. The … Continue reading

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Prospects for growth worsen

The Confederation of British Industry (CBI) has slashed its forecasts for growth in the UK. It had previously predicted that we would see growth of 1.3% this year and 2.2% in 2012, but these have now been reduced to only 0.9% this year and 1.2% next year. The CBI does not believe that we will slip back into recession this … Continue reading

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Our infrastructure is inferior to EU rivals say UK businesses

The Government must act now to attract vital new investment into the UK’s ageing infrastructure. Swift investment across Britain’s road and rail networks, digital, waste and energy would ensure we remain internationally competitive and kick-start UK growth, the CBI said today. A major new survey of 477 businesses, conducted in partnership with KPMG, shows that 58% rate the UK’s infrastructure … Continue reading

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Growth continues to slow in major economies

Gross domestic product (GDP) in the OECD area slowed to 0.2% in the second quarter of 2011, down from 0.3% in the previous quarter. This is the fourth consecutive quarter of slower growth. The slowdown was particularly marked in the Euro area and the European Union, where growth slowed to 0.2% compared to 0.8% in the previous quarter. Significant falls … Continue reading

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Slowdown in investment in OECD pulls GDP growth down

Real GDP in the OECD area grew by 0.6% in the third quarter of 2010, which represents a fall from the 0.9% recorded in the previous quarter. Capital formation only contributed 0.2 percentage points to overall growth, falling from 0.5 percentage points in the second quarter. The main contribution to GDP growth came from private consumption which added 0.4 percentage … Continue reading

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More positive signs from manufacturing

Manufacturing output grew by 0.6% in October, according to the Office for National Statistics, and compares well with the 0.2% seen in September. In fact, the October increase is the biggest monthly rise since March. This figure was approximately twice that which analysts had been prediction. This means that in the three months to October, manufacturing grew by 5.6%, compared … Continue reading

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QE too?

Yesterday, the US Federal Reserve announced that it was introducing its second round of quantitative easing, by pumping $600bn (£373bn) into its economy by the end of June 2011. Will the Monetary Policy Committee of the Bank of England follow suit? The answer for the meantime is ‘no’. Today they decided to keep interest rates on hold at 0.5% for … Continue reading

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Record public sector borrowing in August

Public sector borrowing reached £15.9bn in August, which was a record figure for the month. This compares with £14.1bn in the same month last year. The current budget deficit which shows the difference between government spending and income rose by £2.3bn to £13.3bn. This is not very good news on the surface, and gives added reason to the chancellor to … Continue reading

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Record UK trade gap

The deficit on trade in goods widened to £8.7bn in July, which is the biggest monthly figure since this current series of measurement began in 1998. This deficit compares with one of £7.5bn in June according to figures published yesterday by the Office of National Statistics. The UK’s balance of trade on goods and services also widened from £3.6bn in … Continue reading

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