Falling Oil Prices
Mexico will the end the year recording around 2.5% growth, which is below the 3.4% level which was projected for 2015. The unemployment rate stood at 4.5%, which was similar to the previous quarter’s numbers. The un-official employment rate remains around 58% where it has remained for several quarters. Monetary aggregates are growing at slightly lower rates than in previous quarters. The decision by the Federal Reserve to increase interest rates partly explains the decrease.
Read MoreThe Inherent Danger of the “Monetary Bomb”
Read the inherent danger of the “monetary bomb.” The fact that the government defaults on its obligation to the central bank creates a dangerous situation that could lead to currency depreciation.
Read MoreIncreasing Public Debt and Deficit
The Spanish economy is currently going through a phase of stable growth, with annual growth at around 3%. However, the growing foreign debt and deficit are two numbers to keep an eye on moving forward.
Read MoreDeficit Reduction in the Eurozone
The deficit is starting to get under control in the eurozone. This, coupled with an improvement in the eurozone’s international financial position and a large trade surplus, should translate into an appreciation of the euro if the concerns over political uncertainty abate.
Read MoreOn Track for Reasonable Growth
Over the last fifteen years, GDP data from the first two quarters of the year tends to be better than the second half of the year. Therefore, it’s reasonable to expect around 2% growth by year’s end.
Read MoreVicious Sell-off on Shanghai Stock Exchange
China’s GDP remained the same as in the previous quarter, falling within the 7% projected by the communist government. The Shanghai Stock Exchange remains at record high levels, even after the vicious selloff in August 2015. It is likely that the Chinese central bank will be forced to devalue the currency again if exports do not come in at expected levels.
Read MoreJapanese Economy Stalls
Japan’s GDP fell by 0.4%. Future growth expectations following a 1.1% increase in Q1 have subsided after this most recent decrease.
Read MoreUnexpected Exchange Rate Dynamics
While quarterly GDP figures do vary seasonally, annual growth looks stable with low volatility.If there was any story that has been making headlines recently (as late as this May) it would bethe exchange rate. Given the recent price decline in most major commodity exports one wouldthink that just the opposite would occur.
Read MoreBeginning of a Sustainable Recovery?
What this report intends to answer, however, is whether or not this marks the beginning of a sustained upswing in the Spanish economy. Our goal is to discern if this is merely a temporary rebound coming off the great recession or if this is the beginning of a strong and sustainable recovery with real positive growth prospects for the future.
Read MoreJapanese Quantitative Easing
Japan has been in a def lationary process and economic depression in recent years. Starting in April 2013 the Bank of Japan began a program of quantitative easing where they announced they planned to increase the monetary base by 60 or 70 trillion yen.
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