The International Monetary Fund just issued a dire new warning to China, and it has many fearing a possible stock market crash in 2016.
The IMF warned that growing corporate debt in China is an intensifying problem. They continued saying the debt must be immediately tackled if the Asian nation wants to avoid harming itself and the global economy.
The IMF, an international organization of 189 countries headquartered in Washington, D.C., issued that warning over the weekend. The main goal of the IMF is to promote international financial stability and sustainable economic growth. Continue reading
China’s initiative to build the Silk Road economic belt and the 21st century maritime Silk Road has received interest from more than 50 countries, an official said Saturday. Continue reading
Strong headwinds from weak investment, substantial debt burdens and high unemployment are preventing a pickup in global economic growth despite a strengthening U.S. recovery and tumbling oil prices, International Monetary Fund Managing Director Christine Lagarde said.
A healthier U.S. and cheaper energy “won’t suffice to actually accelerate the growth or the potential for growth in the rest of the world,” the head of the emergency lender to nations said in a speech Thursday at the Council on Foreign Relations in Washington.
“If the global economy is weak, on its knees, it’s not going to help,” said Ms. Lagarde in remarks previewing the IMF’s latest forecasts for the global economy due out on Monday. Continue reading
BRUSSELS – Cash-strapped Greece recorded its first primary budget surplus in a generation last year, according to data released by Eurostat on Wednesday (23 April).
Excluding interest on its debt repayments and a number of one-off measures to prop up its banks, Athens recorded a surplus of €1.5 billion, worth the equivalent of 0.8% of its economic output in 2013. Despite this, Greece still recorded an overall deficit figure of 12.7 percent, up by 4 percent on the previous year as the crisis-hit country endured a sixth straight year of recession. Continue reading
Although the article has a point and the population is truly in decline, Germany should not be counted out. Germans have the know-how, a very modern infrastructure, are still the most industrious and forward thinking people with a vision that no other on the European continent has or can be compared to. It didn’t literally give its manufacturing base to the Chinese.
Germany has peaked. Its hegemony in Europe is a “power illusion”, a confluence of fleeting advantages soon to be overwhelmed by the delayed effect of error and the crush of historic forces.
If demography is destiny, it may be clear within five years that ageing Germany is going the way of Japan. Within 20 years it may equally be clear France and Britain are regaining their 19th century role as the two dominant powers of Europe, albeit a diminished prize. Continue reading
A very good point is made in the sense that this could be a means to contain China’s growing economic hegemony while simultaneously bolstering both EU and US growth.
The European Union and America are to open negotiations with the aim of creating the world’s biggest free trade area worth €86bn (£75bn) within two years.
The talks have been heralded as a “game-changer” that could help kick-start stagnant or contracting European economies back into growth by adding 0.5pc to GDP every year.
David Cameron pledged that Britain, which currently chairs the G8 group of countries, would do everything it could to help broker the difficult talks. Continue reading