Tag Archive | Economy

Standard & Poor’s downgrades Greece’s sovereign credit rating to junk

The Greek government requested that the EU/IMF bailout package be activated. The IMF has said it was “prepared to move expeditiously on this request”.

The size of the bailout is expected to be €45 billion ($61 billion) and it is expected to take three weeks to negotiate, with a payout within weeks of €8.5 billion of Greek bonds becoming due for repayment.

The Greek debt rating was decreased to BB+ (a ‘junk’ status) by Standard & Poor’s amidst fears of default by the Greek government. The Greek government was offering borrowers 15.3% on two-year government bonds. Read More…

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Greece formally asks for EU-IMF loans

Greece has formally asked for rescue loans by the European Union and International Monetary Fund (IMF) to be activated, aimed at helping the country recover from an economic crisis.

Under the plan, countries in the Eurozone will provide up to 30 billion euros in loans in the first year, while the IMF will contribute ten billion euros.

“The moment has come,” said Greek prime minister George Papandreou. He stated that it is “a national and pressing necessity for us to formally ask our partners for the activation of the support mechanism, which we jointly created in the European Union.” The prime minister added that “several days will pass before money can start being drawn.” Read More…

Eurozone growth lowered to zero

According to revised official figures, the economy of the eurozone, the sixteen European countries using the euro, did not grow at all in the final quarter of last year. Eurostat reports that the number was revised from an initial figure of +0.1%.

Eurozone 2010

Meanwhile, the eurozone’s lost more than 2.2% in a year-on year comparison, more than the initial estimate of 2.1%.

According to the numbers, Ireland saw an output drop of 2.3% in the last quarter of 2009, while Greece, the country in the eurozone with the most debt, had its economy contract by 0.8%. Italy was down by 0.3%, Germany saw no gain, but France posted a 0.6% quarterly growth.

The Associated Press reports the stagnation was unexpected by analysts, and will only reinforce expectations that the European Central Bank will keep the key interest rate at one percent for most of 2010.

LA dictators and local GDP, Venezuela’s case

The petroleum sector dominates Venezuela mixed economy, accounting for roughly a third of GDP, around 80% of exports and more than half of government revenues.

Gold, diamonds and iron ore are mined as well. Venezuela contains some of the largest oil and natural gas reserves in the world. It consistently ranks among the top ten crude oil producers in the world.

In February 1992 Hugo Chávez, an army paratrooper, staged a coup d’état attempt seeking to overthrow the government of President Carlos Andrés Pérez. Chávez failed and was placed in jail. Chávez was acquitted in March 1994 by president Rafael Caldera.

In 1998, Chávez was elected president after a vigorous campaign, in contrast with the feeble discourse of the weakened traditional parties’ candidates. Read More…

China world’s biggest…

China has overtaken the US to become the biggest car market in the world as government policy initiatives spur demand.

Shanghai traffic

China sold more than 13.5m vehicles last year, the official Xinhua news agency said today, compared with 10.4m cars and light trucks sold in the US, the lowest level in 27 years.

China’s market grew by 45% year-on-year in 2009, providing a rare glimmer of hope for the world’s beleaguered car manufacturers, such as General Motors, Volkswagen and Toyota. Total industry sales fell 21% in the formerly dominant US market, and Volkswagen has said that China is now its biggest market. Read More…

UPS to cut 1,800 jobs

United Parcel Service (UPS), the world’s larges package delivery service, has announced that it will cut 1,800 administrative and managerial jobs.

The firm, based in Atlanta, Georgia, is to reorganise its five regions into three, and slash the number of districts to twenty from 46, in addition to the job cuts. The company currently has 340,000 people in its employ.

Economic analysts are paying considerable attention to the financial status of UPS, as many see a large connection between the overalls state of the US economy and the amount of parcels shipped. Read More…

Chinese economy overtakes Japan

The Chinese economy is likely to overtop the Japanese economy and become the second largest in the world.

Li Daokui, Director of the Center for China in the World Economy (CCWE) at the Tsinghua University, states that there is no doubt about what the numbers or the statistics show. China’s GDP growth was 9.6% in 2008.

Despite predictions about China’s GDP being at around 8.6% to 9%, it rose to 9.6%, as stated by the National Bureau of Statistics (NBS). The International Monetary Fund (IMF) projected previously that China will overtake Japan soon since the latter’s GDP dropped this year. Read More…