Posts Tagged ‘growth’
India lifts interest rates further to combat inflation
The Reserve Bank of India (RBI) has today raised key interest rates for the thirteenth time since March 2010, in a bid to tame stubbornly high inflation.
The central bank lifted its main rate to 8.5% from 8.25% as inflation soars on the back of higher food and fuel prices and the measures were widely expected.
Figures recently revealed India’s wholesale price inflation rose to 9.72% last month on an annual basis – significantly above the central bank’s target of between 4% and 5%.
This represented the tenth consecutive month that inflation has been above the 9% mark.
Inflation reached a two-year high earlier this year of 10.16%, after food, fuel prices and manufactured goods surged – the highest among the Group of 20 leading nations.
Annual food inflation has surged, causing major problems for the 450 million people who live below the poverty line in the country.
However, economists say that the RBI has a difficult task to bring inflation down amid signs of slowing growth.
Prime Minister Manmohan Singh has previously said inflation is a “serious threat” to the country’s growth.
It is currently the world’s second fastest-growing major economy, behind China. However, the central bank has slashed its growth forecast from 8% to 7.6% for the fiscal year that ends next March.
In a statement, the RBI said: “Slower global growth will have an adverse impact on domestic growth, particularly on industrial production, given the rising inter-linkages of the Indian economy with the global economy.”
In the meantime, the RBI warned that inflation will remain high in the short-term.
“Inflation is broad-based and above the comfort level of the Reserve Bank. Further, these levels are expected to persist for two more months,” the bank added.
Inflationary pressures are rife throughout the world, particularly in Asia, and many central banks are hiking interest rates in order to tame inflation.
German Government slashes economic growth forecast
The German Government has today slashed its growth forecasts for the euro zone’s largest economy.
The Government said it now expected the economy to expand by 1% in 2012, down from an earlier estimate of 1.8%.
Meanwhile, this year’s forecast has been lowered slightly to 2.9% from 3%.
Its downgrade comes just a week after Germany’s leading economic institutes cut their growth forecasts for the economy from 2% next year to 0.8%, citing the debt problems in the euro zone.
Both sets of figures will raise questions about the recovery in the euro zone as slow growth in Germany makes it more difficult for the rest of the region to avoid a double dip recession.
Last year, Germany posted growth of 3.6% – the strongest pace since reunification in 1990, according to the Federal Statistical Office.
However, a recent slew of weak economic data has forced many to re-evaluate their assessment of the economy.
The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next, as a result of the debt crisis.
Returning to the Government’s forecast, it said its revision was due to the expectation that demand for exports will be lower.
Economy Minister Philipp Roesler, comments: “The pace of expansion has slowed down, as we expected,” adding however that “our economy remains on a growth path.”
Meanwhile, German unemployment will continue to fall next year, with the unemployment rate falling to 6.7% from 7% in 2011, according to the Government.
Last month, official data revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.
The country’s unemployment rate fell from August’s rate of 7% to 6.6% and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the Government, designed to prevent mass redundancies.
Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.
German unemployment hits lowest level in 20 years
Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.
The country’s unemployment rate fell from August’s rate of 7% to 6.6%.
Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.
It was also much better than economists had expected.
The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.
Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.
Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”
However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.
Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.
Statistics office Destatis recently revealed German exports fell more than expected in July.
According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.
The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.
The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.
It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.
German unemployment hits lowest level in 20 years
Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.
The country’s unemployment rate fell from August’s rate of 7% to 6.6%.
Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.
It was also much better than economists had expected.
The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.
Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.
Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”
However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.
Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.
Statistics office Destatis recently revealed German exports fell more than expected in July.
According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.
The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.
The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.
It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.
German unemployment hits lowest level in 20 years
Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.
The country’s unemployment rate fell from August’s rate of 7% to 6.6%.
Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.
It was also much better than economists had expected.
The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.
Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.
Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”
However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.
Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.
Statistics office Destatis recently revealed German exports fell more than expected in July.
According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.
The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.
The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.
It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.