Indonesia: Indonesia has no Room for Economic Nationalism: Fin Min
Outgoing Finance Minister of Indonesia Chatib Basri stated in an interview that the two main presidential candidates need to tone down their message and plans for nationalist economic policies because foreign investment will be crucial for job creation and poverty reduction. (Source: CNBC)
United Kingdom: Carney’s Loan Cap Seen as Too Weak to Stifle Housing Boom
In order to deal with an increase of almost 20% in house prices in London and the risks of a booming property market, Mark Carney announced on 26 June that the Central Bank will impose a cap on loan-to-income ratios and other limits on mortgages. (Source: Bloomberg)
Japan: Japan’s Unemployment Rate Falls to 16-Year Low
Japan’s unemployment rate fell to 3.5% in May, the lowest rate since 1997. According to the Bank of Japan, this level is close to full employment. The data indicates that in Q3 the economy will rebound from April’s sales tax hike and the subsequent slowdown in consumer spending. (Source: Reuters)
Mexico: Mexico’s Breakout Moment?
Mohamed A. El-Erian, Chief Economic Adviser at Allianz and a member of its International Executive Committee shares his toughts about Mexico’s recent implementation of structural reforms. He thinks that Mexico is implementing an ambitious structural-reform package designed to lift its economy out of a multi-decade low-growth trap and create new opportunities for its citizens. Moreover, he emphasizes that Mexico has a good chance to realize its impressive structural-reform agenda. Doing so would give the rest of the world an important example of how such programs can be designed and implemented for the long term.
Europe: EU Signs Pacts with Ukraine, Georgia and Moldova
The European Union has signed partnership agreements with Ukraine, Georgia and Moldova. The deal comes despite the ongoing crisis with Russia. (Source: BBC News)