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How a government shutdown affects the economy

World economy 14th February 2020

Crédito y Caución Forecasts A 4% Increase In Insolvencies In The United States

Trade barriers are causing more insolvencies in the agricultural sector, while the retail sector is vulnerable to rising import costs. Crédito y Caución expects the United States to deepen its slowdown in 2020. The Spanish credit insurer expects GDP growth of 1.7%, largely supported by private consumption in the face of weak investment, public spending and exports. Although household finances are in better shape than a decade ago, among companies there has been an increase in debt and a deterioration in their credit capacity.

Brexit uncertainty: a drag on UK GDP in Q4 2019, Q1 2020 to improve

In Europe 12th February 2020

Brexit Uncertainty: A Drag On UK GDP In Q4 2019, Q1 2020 To Improve

Political uncertainty about the Brexit procedure caused the United Kingdom’s (UK’s) gross domestic product (GDP) to stagnate in the fourth quarter of 2019. However, the strong decrease in political uncertainty since the 12 December parliamentary election should allow the UK economy to rebound back to growth during the first quarter of this year, explains Janwillem Acket, chief economist at Julius Baer.

Germany, today, is dependent on China

In Europe, Markets, Opinion, World economy 6th February 2020

Germany, Today, Is Dependent On China

The world has changed a lot because China has changed a lot. China’s share of global GDP has risen from a negligible 2% in 1990 to 15.9%. Meanwhile, the other powers have fallen in that period: Japan, from 14 to 5.8%; Europe, from 35% to 21.9%; and the USA, from 27% to 23.9%, according to Weltbank data.  So hundreds of thousands of jobs in Germany are now dependent on China. And all over the world, because China today accounts for 1/3 of world growth.

World economy 10th August 2016

Growth versus distribution

Why should we fuel growth? Is this the only economic goal? Wouldn’t it be fairer to boost distribution? Larry Summers says there are almost always “trade-offs” in economy, but not as far as this is concerned. Growth is the best social policy.

In Spain 29th January 2015

Spanish car industry turning a corner

MADRID | The Corner | Things are looking up for Spanish car manufacturers, and with exports expected to remain strong,2015 looks like being another good year.

World economy 27th December 2014

Inequality and growth

MADRID | By Luis Arroyo | What has growth to do with growing inequality?  Until recently, we thought that inequality favoured growth, or in anycase it had a neutral impact on it. Growth was the “best supplier” to create new opportunities, through the vertical mobility of the most flexible countries. But the OECD released this report showing how inequality “significantly” curbs economic prosperity. And yet, Krugman is skeptical that the inverse correlation between inequality and growth is so obvious. According to him, strong evidence is lacking, and there are signs that part of inequality can be cured with growth.