The International rating agency Moody’s will review over the next three months the credit rating of Portugal with a possible decrease in the direction of one or two degrees, said in a statement the agency, quoted by RIA Novosti. Now Portugal’s credit rating is “Aa2″. The intention of Moody’s is continuing to assess the situation to deteriorate to government debt. In the view of analysts from the rating agency, taking into account the small size of the economy of Portugal and its poor growth performance of these public debt may not fully reflect the rating of “Aa2″. At the end of April ratings agency Standard & Poor’s lowered the long-term credit rating of Portugal with two degrees – from “A +” to “A-” to “negative” outlook. At the end of 2009 government debt of Portugal was up nearly 77 percent of gross domestic product (GDP) of the country, for comparison, the external debt of Greece has 120% of GDP. Meanwhile, analysts note that in Portugal the threat can come from many large private sector debt, which exceeded the indicator for Greece. According to forecasts by the European Commission (EC) GDP growth this year Portugal will be 0.5 percent and for 2011 – 0.7%.
(more…)

The Gross domestic product (GDP) of Italy had fallen to 5% in 2009, while the budget deficit reached 5.3 percent of GDP, figures released today data from the Italian statistical office. In 2008, the country’s budget deficit was 2.7 percent of GDP, while the central bank forecast last month for the economy were to shrink by 4.8 percent. Also announced in February forecasts of the Italian Statistical Institute are to increase GDP by 1% for 2010, a deficit for the year amounted to 5.1 percent of Gross domestic product (GDP). Earlier today it became clear that the unemployment rate in Italy has risen in January to 8.6 percent from 8.5 percent in December. Announced data coincided with the average expectations of economists.
(more…)

The economy of Ukraine has contracted by 7% in the fourth quarter of 2009 over the same period the previous year. This was the smallest decline in gross domestic product (GDP) in the country last year, police Bloomberg. The main reason for this probably lies in increasing exports in the last months of 2009, which gives impetus to the industrial production of Eastern European countries. Preliminary statistics do not give details of individual components of GDP. For comparison, the GDP of Ukraine decreased more strongly by 15.9 percent in the third quarter, 17.8 percent in the second and 20.3 percent in the first three months of 2009. Ukraine plunged into recession in the fourth quarter of 2008, after the global economic crisis undermines demand for steel, which occupies a central place in its exports. Meanwhile, in 2009 require the Government to grant aid of 20 of the largest banks in the country. Ukrainian bracelet is impaired by 42% against the U.S. dollar since the beginning of September 2008 as the political crisis in the country has caused the IMF to stop to pay the loan from EUR 16,8 billion allocated last year to enable Ukraine to finance its budget. According to economists RBS Ukrainian economy remains in poor condition despite the appreciation of the metals and the depreciation of local currency last year. During today’s foreign exchange session one Ukrainian bracelet be exchanged for 8.0215 U.S. dollars.
(more…)

The U.S. economy has a serious request to exit the severe economic crisis, it became clear from data on gross domestic product in the last quarter of 2009. It grew by 5,7 per cent in seasonally adjusted and aligned on an annual basis. This is the sharp rise in U.S. GDP by the end of 2003 onwards. The increase comes after the U.S. economic growth of 2,2 per cent in the third quarter of 2009. Analysts’ estimates were for growth of 5.4 per cent. Despite the high score, however it is too early for definitive evaluations Since several revisions to the data. Although over the last two quarters of 2009 to the U.S. economy grew for the whole last year reported a decline of 2,4 per cent. This is the worst performance of the U.S. economy from 1942 onwards, when it was registered a decline of 10.9 percent. Among the positive data make a bad impression with business investment, which suffered its biggest decline from 1942 to date, writes Market Watch. About two-thirds achieved in the last quarter of the year growth was due to selling of stocks in the economy. If they are removed from the calculations, the estimated growth of 2,2 per cent annually, which is a signal of continued weakness in the U.S.
(more…)

The Gross domestic product (GDP) grew by 0.4 percent in the euro area (EU-16) and by 0.3% across the EU in the third quarter of 2009, said the community’s statistical office Eurostat. In the second quarter of 2009 growth was -0.2% in the euro area and -0.3% in the EU27. Compared with the third quarter of 2008, GDP declined by 4.1% in the Eurozone and 4.3% in the EU27, after -4.8% and -5.0% respectively for the previous quarter a year ago. In the third quarter of 2009, consumer spending fell by 0.2%, at 0% and -0.1% respectively for the previous quarter. Investments decreased by 0.4% in the eurozone and by 0.5% in the EU27 (-1.7% in reported and -2.5% the previous quarter). Exports increased by 2.9% in the Eurozone and 2.4% in the EU27 (-1.3% respectively at -1.4 percent and the previous three months). Imports increased by 2.6% in the eurozone and by 2.4% in the EU27 (in-2, respectively, 9% in both zones). To compare the U.S. GDP increased by 0.7% in the third quarter of 2009, after -0.2% in the second quarter of 2009.
(more…)

Most large U.S. banks will soon have to take public offerings if the Treasury require repayment of funds lent to them by the program to buy troubled assets (TARP), Reuters said banking analyst Richard Bouv. Earlier this month asked the Federal Reserve Banks, subject to “stress test” to come forward with plans to repay the amounts allocated in exchange for the issued preference shares in them. “In fact, all banks can easily redeem these securities of its cash balances, but only 3 of the top 30 banks would be left with adequate Tier if they do,” explains Bouv. It is believed that the Treasury aims ratio Tier assets to 12 percent, which means that banks will be forced to raise capital without government assistance before they are allowed to repay the funds under the program continues Bouv. “It stirs the thought that some banks would rather have public offerings, although their profits are in doubt.” Rochdale Securities analyst said that the swell of the U.S. budget deficit, which is expected to reach 9.5 percent of GDP in this fiscal year and the drop-down dollar, forcing the government to obtain funds where possible. Collection of funds awarded through the TARP program is one of the possible sources, according Bouv. Many banks want to return the funds received under the program, which was worth 700 billion dollars as participation in it is associated with restrictions on expenditure on salaries, dividends and redemptions.
(more…)

Lithuania will not adhere to the “painful” scheme for adopting the euro, which will shrink consumption and greatly harm the economy, said Prime Minister of the country Cubilus Andrews. The country probably will fail to meet EU requirements for the deficit within 3 percent of GDP by 2011, so the adoption of the euro can not happen before 2013, said in an interview yesterday, Finance Minister of Lithuania Ingrid Simon. “These are very ambitious and very painful measures, and, of course, there are any limits on what measures can enter,” said Cubilus. The aim is not to kill the entire economy and stability in society by reducing costs, salaries and pensions. Lithuania’s economy contracted by 14,3 per cent in the third quarter after the government took budget cuts, equivalent to 8 percent of GDP this year. Even after these stringent measures, the evaluation of the European Commission Lithuania will have a deficit of 9,7 per cent in 2011 to 9.8 per cent for this. Lithuania, whose currency – liras is tied to the euro should be introduced European single currency “as soon as possible, but the opportunities in turn have practical limits and practical measures should be introduced,” said Cubilus. The government has proposed the 2010 budget cuts of 5 percent of GDP, aimed at social welfare. Lithuania lags behind neighboring Estonia, which plans to join the eurozone from January 1, 2011, after years of using the government budget surplus for the establishment of reserves. This allowed the public finances remain intact even after the crisis hit the country.
(more…)