The current state of gloom in the global economy has led many economies to adopt negative interest rate policy (NIRP). Among the early adopters is Japan which adopted this policy in Jan’16 after other monetary tools failed to spur economy. While NIRP hasn’t helped the economy, it is difficult to predict what would have been … Continue reading Explaining Negative Interest Rate – Japan’s case
Development of Least Developed Countries (LDCs) and bringing them out of poverty remains a grave challenge for global agencies. Despite serious efforts being made to kick start their economies, the pace of progress remains insufficient. Even though social strife has affected growth in some of these countries, there are several others which are lagging purely … Continue reading Least Developed Countries (LDCs) – An Overview..
UK’s exit from EU has reached a nerve wrecking stage after EU rejected UK’s request for three month extension. The British parliament is now voting again on what sort of Brexit they want through what is being called an ‘indicative vote’. Whatever may be the outcome, the chances of having a ‘soft’ Brexit has receded … Continue reading Brexit – Understanding The Process And The Roadblocks
After growing at an average pace of about 10% for more than two decades, Chinese economy has cooled down to 6-7% range over last 3-4 years. This is the result of a shift in policy leading to slowdown in investments & exports of low value products, the two drivers of growth so far. The shift in … Continue reading Chinese Economy – Challenge of Transition…
While media continues celebrate wealth and growing number of millionaires, the income disparity across the world is getting worse. As per the Oxfam report released earlier this week, an astonishing 82% of total wealth created last year was cornered by the top 1% while the bottom half saw no increase at all. The increase, over $760 bn, was seven times what is needed to bring about 15% of the world’s population out of poverty. Here is a look at some more details from the report. Continue reading Wealth Inequality – Is There A Way Out??
Shipping industry in India continues to face challenging times with seven of the 13 listed companies reporting losses as per the latest financials. The stress seems to have worsened with share of loss making companies in total sales rising from 38% in FY18 to 60% for H1’FY19. The trouble in the domestic industry is a … Continue reading Industry Analysis – Shipping
It was a reasonable yet an uncertain year for the global economy expected to end 2018 with growth rate of 3.7% as per an IMF report, almost the same as previous year. While growth rate of developed nations remains close to 3%, for emerging economies, it is expected at over 4.5%. Chinese economy, probably the … Continue reading The Year That Was – International..
Global trade rebounded in 2017 growing at 4.5% in volume terms much better than 1.8% witnessed in 2016 and strongest in six years. That probably gives a reason to attempt this analysis even though it is almost the end of another year. Trade in value terms was even higher as a result of sharp rise in … Continue reading Global Trade – An Overview..
The process of withdrawal of United Kingdom from European Union has gained momentum with release of draft agreement about a week back. As per the current legal statute, UK would be out of EU on 29th March 19 and both the parties have to enter into a deal before that to avoid disruption to businesses and life, in general. Current trade between EU and UK stands at over $500 bn of goods trade, $235 bn of services and about $1.4 trillion of EU assets being managed by UK based financial services firms. Despite the pressure on British currency, EU also has a lot to lose from the exit. While the negotiations have not been as tough as anticipated and as nerve wracking as in the case of much feared Greek exit, fingers are still crossed. Here is a look at the economic aspect of the withdrawal and why an orderly withdrawal matters. Continue reading Operationalizing Brexit – What is at Stake??
As per the Global Financial Stability Report released by IMF (International Monetary Fund) last month, global economy continues to maintain growth momentum. This has been aided by stronger banks, substantial improvement in regulatory standards and curtailment in the activities of so called shadow banks. However, there could be a reversal in trend as reflected in … Continue reading Status of Global Economy, Ten Years on – IMF Report