TODAY’S TOP ARTICLES – 17 DEC 2013

Emerging Markets: How some emerging markets get taper insulation
CNBC reports that countries like the Philippines and India gain some insulation from the effects of external developments thanks to the large sums of money sent home from workers abroad. Capital outflows from emerging countries have become an issue as it becomes more likely that the U.S. Fed will begin tapering its asset purchases soon. However, incoming remittances provide somewhat of a buffer.

France: Fears of a new recession
According to the most recent data, the French economy could be in the verge of a new contraction in GDP on the fourth quarter of 2013. As and Germany (the usual benchmark comparison to France) and the Eurozone are showing signs of recovery, the French economy is unable to continue to grow, as the BBC News reported.

Greece: Greece and troika reach compromise on EAS, not on foreclosures
Kathimerini reports that international lenders and the Greek government reached on 16 December an agreement on the fate of Hellenic Defense Systems (EAS). This was the last “prior action” remaining for the troika to approve the release of the next sub-tranche of EUR 1 billion. However, Greece and the Eurogroup were not able to reach a compromise on other issues like the fiscal gap for next year.

China: PBC Governor Proposes Three Financial Reform Measures
In an interview by Caijing, PBC Governor Zhou Xiaochuan argues that there are complementary facets for China’s financial reform. The first is to broaden private capital and foreign investment’s access to the financial market to promote competition. The second is to allow marketized pricing of financial factors. The third aspect is to invigorate the market by giving more autonomy to market participants.

Japan: GDP estimate to be raised to 1.3% for 2014
The Japan Times reports that the government is expected to increase its growth forecast for fiscal 2014 from the 1.0% rise issued in August to 1.3%. Growth in fiscal 2014 is expected to be weighed down by drops in consumer spending and housing investment when the consumption tax hike to 8% kicks in that month. But the government believes the slowdown will be offset by the JPY 5.5 trillion stimulus package hammered out earlier this month.

For latest economic indicators from around the world, please visit us at FocusEconomics.

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