Financial Communique » Recession

Japanese recession returned

Viliyana Filipova — Thu, 19 May 2011 12:35:25 +0000

The Gross Domestic Product (GDP) of Japan shrank by 0.9 percent in the first quarter – twice as powerful than expert expectations. Calculated on an annual basis, it makes a drop of 3.7 percent, the government said in Tokyo. Analysts predicted a decrease of 2%. Since GDP also reported a decline in the previous quarter, according to country definitions is back in recession. The Asian country out of the previous major depression following World War II until the second quarter of 2009 earthquake and subsequent tsunamis and the nuclear accident in Fukushima nuclear power plant is expected to throw the country into even more serious crisis. Experts fear that the economy will stagnate and in the current quarter, because the consequences of the earthquake still loaded production and exports. The Japanese Economy Minister Kaoru Yosano said, however, a temporary phenomenon. The decline in GDP was mainly due to the effects of the earthquake. Japanese economy really will remain weak for some time. But she had the strength to stand fast back legs. Supply chain industry gradually stabilized and recovery is expected to stimulate the economy. Yosano confirmed the forecast of government, which expects to start in April fiscal year grew by just under one percent.
Furthermore, the exports and consumption decline reported, which makes about 60% of the country’s economy. It shrank by 0.6 percent, slightly more than analysts expected 0.5%. Investment shrank by 0.9 percent – well below the concerns of professionals. Although the crisis is expected Bank of Japan to continue to adhere to “policy of cheap money.” Lately, she still gave signals that may weaken further monetary policy if the earthquake has affected more severely than expected economic

Jim Rogers: Be prepaired for the new recession after 2 years

Viliyana Filipova — Sun, 25 Jul 2010 06:41:23 +0000

The next global recession can be expected around 2012, said investor Jim Rogers. It may, however, is much more severe since then central banks will be able to pour so much money on the market because of inflation, which will raging, he said, quoted by CNBC. Today, the RBI decided to increase interest rates, thereby joining countries such as Canada, Norway and Australia did the same. The reason for increased interest is the danger of inflation and the rapid economic development. “The world is inflation, while most central banks to deny,” said Rogers and stated that every four to six years in the U.S. has recession. This leads him to believe that the next recession will occur in particular around 2012. “When she came, the world will be in far worse condition, as will already have exhausted all the bullets. Does Bernanke will print more money? No, I will do the trees in the world, “said Rogers. According to Rogers, the fact that the profits of U.S. companies are above expectations does not mean at any cost, that recovery is stronger than expected. “I’m sure part of that relates to expectations, but remember what you compare. Talk about the second quarter of 2009 when we thought that the world ends, “said Rogers.
“Worried about next year, rather than the second quarter. It is history, “advises billionaire.

OECD: Low euro is welcome, recession will miss the Eurozone

Viliyana Filipova — Fri, 28 May 2010 04:00:49 +0000

New recession in the euro area is unlikely, a depreciation of the euro will help reduce the negative effects that have measures to reduce the debt on economic growth, says Pier Carlo Padoan, chief economist of the Organization for Economic Cooperation and Development (OECD) said from CNBC. Governments need to pursue fiscal consolidation and reforms in the pension insurance system and labor market to promote economic growth, said Padoan. To convince skeptical financial markets in the effectiveness of its strategy, governments should also show that the coordinated work, he added. Even measures to reduce the debt limit growth in the eurozone, it will be partly offset by increased demand for European goods from Asian and other markets due to their better competitiveness resulting from weaker euro, he said. According to data from the European Central Bank the value of the euro against the U.S. dollar declined by 14% this year, while trade-weighted value of the euro has decreased by more than 10%. “Will there be a” W-shaped “recession in Europe? I do not think, “said Padoan, emphasizing that the massive debt following the global recession in 2007 – 2009,” is not just European history “and that Europe will deal with this problem faster than others.
Manufacturers in the euro area were not late to take advantage of euros due to weak international demand for increased European goods, said Padoan. “If you combine these two factors – strong growth in Asia and the weak euro, this could give a pretty good boost to European exports,” said Padoan. “Low euros in the short to medium term is very good news.” “In any case, it would be good for the world economy if the currency rates suffering a slight adjustment. The euro has certainly been overestimated for some time, while Chinese yuan was certainly underestimated. The publication of his latest economic report in this month the OECD increased its forecast for world economic growth to 4.6 percent in 2010 and 4.5 percent in 2011 than projected in November, respectively 3.4% and 3.7% growth. OECD forecast for the global labor market is also quite optimistic. The organization expected that unemployment in its member countries has reached its peak of about 8.5 percent – much lower cost than originally anticipated 10%. OECD and raise its forecast for U.S. growth to 3.2 percent this year and next than expected in November, respectively 2.5% and 2.8%.

The Russian economy is out of recession

Viliyana Filipova — Tue, 20 Apr 2010 09:43:39 +0000

The Russian economy out of recession and began to recover, Prime Minister of Russia Vladimir Putin during an extensive report today on the work of the government last year exported to the State Duma, Russian media reported. According to Putin recession ended the Russian economy and now also the conditions for progress are very good. According to the Russian prime minister that does not mean that the country has gone out of crisis but the recession has ended. Putin reasons that make those findings justify its latest data on the development of Russian economy. He stated that preliminary results for first quarter suggest optimism – the growth of industrial production reached 5.8 percent, while real incomes have risen by 7.4 percent. Russian Prime Minister added that it is very likely the official forecast of growth of gross domestic product for 2010 from 3.1% to be exceeded and it reaches about 4%. Putin noted that the key sectors of the real economy and financial system out of the global test and enter into good shape. Putin stressed in his speech that it is necessary to keep the trend from last year to decrease inflation, when it slowed to 8.8 percent (the lowest level of 18 years) for this year is on average 5-6 %.
Russian Prime Minister also said that it is premature to abolish the flat tax of 13% since its introduction has increased the collection. Progressive income tax can be returned when the administration begins to work properly and taxes begin to be collected as follows, is said Putin.

Bill Gates: The economy will need of years to exhume

Viliyana Filipova — Tue, 26 Jan 2010 01:07:53 +0000

Bill Gates, who is the richest man in the world, said today that the U.S. economy and will take years to recover from the recession ST. Moreover, he added that he expects the taxes in the United States will grow to be able to balance the budget. These forward Reuters, citing an interview, which gave Microsoft co-founder of ABC. Gates also warned about excessive government interference in financial matters and urged the President Barack Obama to focus on longer term goals such as education and prevention of the consequences of the deepest recession since the Great Depression. When such a crisis happens, take years of economics, “to dig up,” said Gates. The budget is already quite razbalansiran and even to return the economy back on the road to rise without changes in tax policy and the holder the right fiscal framework will remain on minus. At any time the financial markets will vzrat in this hole and it can not but cause problems, added technocrats. Microsoft co-founder said that “everyone is confused and difficult to slow economic recovery, but I think there is any magic wand with which the Government to expedite the process”
According to Gates, the U.S. need that the country’s leaders and ordinary citizens to come to an opinion regarding the objectives and what sacrifices it is necessary to bear in their name.

IMF: Recession may come again

Viliyana Filipova — Fri, 22 Jan 2010 01:42:44 +0000

The head of the International Monetary Fund Dominique Strauss-Kahn warned that the world economy can survive the next round of reduction and to get into the so-called dual recession, reports BBC. He advised the parties not to suspend incentive packages for the housekeeper, who last year brought to curb the decline in the national economy. He added that currently China and Asian countries contributing most to economic growth fragile. Economic recovery in developed countries has so far been weak. To see a stronger upward movement should be improved consumer demand and reduce unemployment. He however assured that this year would increase the IMF forecast growth of world economy.
We recall that last one was a jump of 3.1% over 2009

Recession began flooding the courts with cases in the U.S.

Viliyana Filipova — Fri, 01 Jan 2010 16:08:34 +0000

Recession, which is undergoing U.S. economy begins to affect the courts. This is evident by the huge number of cases brought this year, many of them one way or another connected with the economic crisis. Only in New York is expected to finish the year with a record in the history of 4,7 million cases, but many say is just beginning influx of claims, because trials generally come late to the crisis, reports New York Times. Information indicating that the majority of the cases are related disputes caused by the economic crisis. In the present case is not about processes which are considered bad debts or unpaid trade relations. In many cases, the cases are related to domestic violence caused by economic stress – loss of job or housing, says the material. Estimates are that cases of settling commercial disputes will rise by 9 percent from last year. Obvyavane processes of delinquent mortgage even increased by 17 percent. Meanwhile in New York area criminal cases increased by 7 per cent, and in less severe disorders has increased by 18 percent compared to last year. Evaluations of judges and lawyers suggest that such growth rates are typical for times of crisis, when even minor offenses such as theft in small increase due to the fact that many people lose their jobs. Therefore, a large part of criminal cases can also be attributed to cases arising from the crisis.
Experts said the large number of new cases the judiciary will feel the pinch and will need several years to resolve problems and work to return to levels of previous years.