Economic Snapshot
The New Eurozone Political Geometry: What Economic and Market Implications?
The New Eurozone Political Geometry: What Economic and Market Implications? The struggle to form a government in the aftermath of inconclusive Greek elections last weekend has turned many market-watchers into micro-political analysts, counting seats and attempting to decipher the platforms of new and sometimes marginal Greek political parties for coalition-forming potential. At the same time, [...]
Preparing for Greek eurozone exit
Preparing for Greek eurozone exit Recent political changes in Greece mean that investors are increasingly viewing a Greek exit from the eurozone as most likely. Current political dynamics suggest that a new Greek government will have to rely on participation from left-wing parties, which are calling for a renegotiation of Greece’s agreement with the Troika. [...]
Poland economy: Brewing storm
Poland economy: Brewing storm When Poland’s prime minister Donald Tusk won a second-consecutive term in office in October last year he immediately announced that a high spending deficit, rising public debt and a wobbly zloty meant there was no choice to a bruising austerity package. Along with tax hikes and some limited spending cuts, the [...]
Singapore economy: Policy tightening
Singapore economy: Policy tightening The Monetary Authority of Singapore (MAS) has made only minor changes to monetary policy at the first of its twice-a-year policy reviews. In a statement published on April 13th, the central bank outlined changes to its exchange-rate regime that amount to a slight tightening of monetary policy. The policy shift shows [...]
Argentina industry: YPF expropriated
Argentina industry: YPF expropriated On April 16th, Cristina Fernández de Kirchner, Argentina’s president, announced that the state would seize control of Yacimientos Petrolíferos Fiscales (YPF), the country’s largest oil company, which is jointly owned by Spain’s Repsol and Grupo Petersen, a domestic firm. The move immediately sent the company’s shares into free-fall and prompted strong [...]
China economy: Reform push
China economy: Reform push Over the past few months China’s authorities have unveiled a number of new economic reforms, many of which have focused on the financial sector. The initiatives have come thick and fast, contradicting expectations that the period ahead of the transition to a new generation of leaders—likely to begin at the Chinese [...]
Switzerland economy: Indications of positive growth
Switzerland economy: Indications of positive growth The economic barometer published by Switzerland’s Centre for Business Cycle Research (KOF), which forecasts GDP growth for the upcoming one to two quarters, provided positive news in March. After falling from mid-2011 to January 2012, it rose in February and March 2012 to reach a just positive value (0.08 [...]
USA economy: Inflation remains elevated
USA economy: Inflation remains elevated Inflation remains elevated in the US, but with much of it driven by rising commodity prices, concerns have been largely muted. Energy price increases contributed significantly to inflation remaining at 2.9% in February, the same as in January—although this is below the level recorded throughout most of 2011. The rise [...]
Uganda economy: Financial sector adjusting
Uganda economy: Financial sector adjusting Higher inflation and exchange-rate volatility over the past year have hurt Uganda’s financial sector. Following a period of rapid growth, net private-sector lending has slowly declined since September, and the banks have also adjusted their asset portfolios. This slowdown in lending is unsurprising and was an intended consequence of the [...]
South Africa economy: Inflation eases
South Africa economy: Inflation eases The outlook for inflation in South Africa has brightened a little after price growth slowed to 6.1% in February, from 6.3% in January—the first fall for more than a year—while the rise in electricity prices on April 1st was of a smaller magnitude than expected. Lower food prices were the [...]
