Scandinavia: Scandinavian Debt Crisis Waiting to Happen Puzzles Krugman
Several top economists are concerned about record household debt levels in Scandinavian countries like Denmark and Sweden. Paul Krugman notes that these countries successfully weathered the financial crisis but low interest rates have led to unsustainably high debt levels and potential housing bubbles.
Global: World Bank says that global economy is at a turning point
According to the BBC News, the World Bank said richer countries appeared to be “finally turning a corner” after the financial crisis. The institution released its annual report on the world economy, in which it also warned over the vulnerability of growth prospects after the Fed has started to taper its bond-buying program.
Germany: German economy grows less than expected, but takes Euroarea out of recession
According to Bloomberg, German GDP rose 0.4 percent from 2012, when it gained 0.7 percent, the Federal Statistics Office said in Berlin today. The figure was a tad below the 0.5% that markets had expected. The largest economy in the Euro Area is key to the sustainability of the recovery in the area, where unemployment remains at a record high and bank lending is still contracting.
Greece: Primary surplus gives gov’t leeway
Kathimerini reports that the Greek government presented on 14 January data on the 2013 budget, according to which the country showed a primary surplus of at least EUR 691 million. Greece was expected to reach a primary surplus not before the end of 2014, according to the current bailout program. However, the better than expected data ease the negotiations between the government and the international lenders.
United States: Obama to Announce Program to Create Jobs
The New York Times reports on Obama’s plan to announce the establishment of a manufacturing institute to help create well-paying jobs.