Tag Archives: GDP
Source: Wikimedia Commons

3 reasons economists keep forecasting growth wrong

The Fed and IMF again downgraded US growth projections, as they have done repeatedly for the last five years. When the Federal Reserve and the IMF downgraded their forecasts for the US’ growth in 2014 last week, both bodies pointed to the terrible winter weather (that brought the term ‘Polar Vortex’ into the nation’s vocabulary) […]

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South African consumers

South Africans living beyond their means should worry investors

As South Africans continue to over-spend a changing global economic environment is likely to worry investors about the narrowing market opportunities and consumer spending capacities. South Africa has, in the past years, been an attractive investment location in part due to its consumer spending capacities, monetary stability, and market growth. However, South Africa’s economic growth and market […]

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Abuja Nigeria

Nigeria becomes Africa’s largest economy after GDP revision

Nigeria has begun using a new base year for its GDP calculations and has added new sectors to the economy. The change in calculation has nearly doubled its GDP estimate for 2013. At the beginning of April, Nigeria overtook South Africa as the largest economy on the continent, nearly doubling its GDP through a statistical revision. […]

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ECB and Germany must learn to love inflation for Eurozone to grow

Even though the Eurozone is teetering on the edge of deflation, the ECB will not lower its rates. The European Central Bank’s (ECB) message to markets in the last year has been clear: it will do anything in its power to stabilize the Eurozone. Anything, that is, except delivering on its inflation target. Eurozone inflation – […]

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China ghost cities

3 factors that will affect China’s GDP growth rate this year

Economists and China watchers alike have waited for news on whether China’s growth will remain high. Contrary to popular belief, a decline in growth would actually signify effective implementation of reforms and a healthier Chinese economy. China-watchers and economists alike continue to worry whether China’s economic growth is sustainable. However, if China is implementing its […]

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One year in, is the honeymoon over for Abenomics?

Shinzo Abe celebrated his first year as Japanese Prime Minister in December, which also marked one year with Abenomics. For many, this will be a dismal anniversary, as the latest figures are not particularly encouraging. However, the game is not over yet. On December 26th, Shinzo Abe celebrated his first anniversary as Japanese Prime Minister. […]

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Will Greece have to ask for additional debt relief?

Greece’s debt-to-GDP continues to rise and is now at 175 percent. Simply put, the Euro has proven too expensive for Greece. Like Sisyphus pushing the boulder up the mountain, in a never-ending process of toil and sweat, Greece still struggles with a tremendous pile of debt. The maturities and payback times are larger now than […]

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currency trading

IMF conference paper links currency depreciation to post-crisis growth

A new paper presented at the IMF’s Annual Research Conference suggests that emerging markets should counter liquidity problems from capital outflows with currency depreciation and reserve sales. Read the full IMF report here. Political risk can be a difficult concept to pin-point as the effects of a policy change might not have immediate effects but still greatly […]

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Troika’s Greece Policy Is Still Not Working

Representatives of the troika – from the European Commission, European Central Bank and International Monetary Fund – are back in Athens for another review of progress in fiscal adjustment and structural reforms. Their strong posture demonstrated on similar occasions in the past has been paradoxical. One might not expect such confidence given the substantial evidence […]

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Egypt gas shortage

The Real Reason High Oil Prices Lead to Instability

Businesses rarely gain from political instability so trying to predict unrest is a critical activity for any entity investing in a volatile corner of the world. One of the factors most often cited as contributing to unrest is high oil prices. Drawing a link between rising oil prices and political instability is not particularly novel. […]

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