The Lastest Macroeconomic News
12.08.2018 13:56 Russia-U.S. economic war looms larger as new sanctions near
The U.S. State Department said Wednesday that Washington will impose new sanctions on Russia on or around Aug. 22 over the alleged poison attack on ex-Russian spy Sergei Skripal and his daughter Yulia in the British city of Salisbury in March. According to the Russian Foreign Ministry, the U.S. restrictions will possibly include a ban on foreign assistance to Russia and sale of military and dual-use items to the country, as well as renunciation of providing state loans and other financial aid. U.S. State Department officials estimated that the sanctions may affect hundreds of millions of dollars worth of exports, dealing a blow to some 70 percent of the Russian economy which may result in an approximately 40-percent fall in workforce. "All I can say is: if they ban banking operations or the use of any currency we will call it the declaration of an economic war," Russian Prime Minister Dmitry Medvedev said Friday. "And we`ll have to respond to it - economically, politically or in any other way, if need be. Our American friends should make no mistake about it," he warned.
06.08.2018 23:56 Russian inflation accelerates to 2.5pc in July
Russia`s consumer price index (CPI) rose 2.5 percent in July in year-on-year terms, up from 2.3 percent in the previous month, the statistics service said on Monday. Month-on-month inflation was at 0.3 percent, down from 0.5 percent in June. The year-on-year increase in the CPI was slightly below of the analysts` expectations for a rise of 2.6 percent in a Reuters poll. Russia`s recovery continues but remains fragile. Growth in the first quarter remains around the 2% mark and no surprises are expected for the rest of the year. The GDP growth forecast for this year was recently revised down to 1.9%, while the outlook for industry has dipped back into the red after the manufacturing PMI turned red in May and June. Inflation and unemployment remain at record lows, although inflation is expected to rise from the current 2.3% towards 4% over the next year.
01.08.2018 20:12 Russian central bank raises Q2 GDP estimate on World Cup
The Russian central bank Monday raised its estimate for the country`s gross domestic product (GDP) growth in the second quarter of this year to 1.8-2.2 percent from the previous 1.0-1.4 percent. "Holding the World Cup in Russia made a positive contribution. It is estimated that demand from foreign fans increased the volume of services in the hotel, transport and restaurant sectors," the bank said in a monthly analytical report. Russia`s GDP grew 1.3 percent in the first quarter, according to the country`s state statistics service Rosstat. The 2018 World Cup held between June 14 and July 15 attracted 7.7 million football fans, according to an official FIFA estimate. The central bank forecast that GDP growth will be 1.5-2.0 percent in both the third and the fourth quarters. Under these conditions, the expansion of consumer demand will result in a gradual inflation increase to 3.5-4.0 percent by the end of 2018, it said.
24.07.2018 18:18 G20: Trade is key engine of economic growth
Amid global trade tensions, the third G20 meeting of finance ministers and central bank governors in Buenos Aires, Argentina, over the weekend reflected the support of the world`s main economies of international trade and investment as “important engines of growth, productivity, innovation, job creation and development,” according to the issued communiqué. In the forum for the governments and central bank governors of Argentina (the current chair), Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States and the European Union, more than 55 senior officials discussed the “risks and opportunities” of the world economy over a two-day meeting at the Buenos Aires Convention & Exhibition Centre (CEC).
17.07.2018 18:25 IMF: Trump`s trade war could inflict $500bn of damage on world economy
Donald Trump`s trade war could wipe up to half a trillion dollars off the global economy and financial markets are too complacent about the risk, the International Monetary Fund has warned. Unveiling the Fund`s latest outlook on Monday, the IMF`s economic counsellor, Maury Obstfeld, said the global economy was set to grow at 3.9 per cent this year and next, which would be its highest growth rate since 2011. But Mr Obstfeld also warned that the US President`s tariff hostilities were “the greatest near-term threat to global growth”. He said that IMF modelling shows global output could be about 0.5 per cent below current projections by 2020 if threatened tariffs materialised and business investment fell as a result. With the IMF projecting global GDP to be around $100 trillion (£75 trillion) in 2020, that implies a cost of $500bn.
10.07.2018 19:26 UK GDP growth recovers in May boost to Bank of England hawks
The British economy did not accelerate in the three months to May compared to the first quarter, according to monthly data released for the first time by the Office for National Statistics (ONS) – although a bounceback during the month of May itself will relieve Bank of England hawks hoping to raise interest rates. UK GDP grew by 0.2 per cent in the three months to May, the same pace as the first three months of the year. However, the new monthly GDP estimate – which the government's statisticians caution is a more volatile measure – showed growth of 0.3 per cent during the month, up from 0.2 per cent in April, with the ONS crediting the royal wedding and warmer weather for a boost to retailers in particular.
04.07.2018 21:59 Global economy under threat as tariff war bites
Global economic growth is under threat as the world`s economic super powers trade tit-for-tat trade sanctions, according to the World Trade Organization. In its most sober assessment of the growing tariff war between the US, European Union and China, the WTO said the global system of agreed trade rules was at "potentially large risk". It said world economic growth was "in jeopardy" and pleaded for a "de-escalation". The threat of a tariff war was sparked after US President Donald Trump ordered tariffs on steel and aluminium imports from the EU and China.
26.06.2018 20:51 Stronger US GDP in Q2
The US gross domestic product (GDP) is anticipated to grow at a much stronger pace in the second quarter, underpinned by stronger retails sales, according to AmBank Group. Its chief economist Anthony Dass said last week he expect the second quarter GDP to be much stronger, supported by strong consumer spending which should grow around 3.7% due to tax cuts, and net exports that would help lift GDP growth by about 1% in the quarter. “Hence, we have revised the second quarter growth GDP growth to 3.8% from previously 2.8%, higher than the first quarter growth of 2.2%. If the economy grows at our projected growth rate, it would be the best since the third quarter of 2014”, he noted.
21.06.2018 18:28 Central bank: World Cup to add 0.1-0.2 percentage points to Russia`s GDP
The holding of the 2018 FIFA World Cup will increase Russia`s Growth Domestic Products (GDP) in 2018 by 0.1 to 0.2 percentage points, the country`s central bank said. "Holding such a large-scale international event will additionally support the growth (in production) in the second quarter, and by the end of the year, its contribution to GDP growth may reach 0.1-0.2 percentage points," governor of the Russian central bank Elvira Nabiullina said at a press conference. Meanwhile, the head of the bank said the World Cup will have little influence on Russia`s inflation, with only short-time effects in certain cities and on certain goods and services, primarily consumed by tourists. She also expressed hope that the games will only have a positive impact on "expectations and sentiments" of both Russian citizens and foreign guests. According to its press service, the central bank forecasts Russia`s annual GDP growth in 2018 to be 1.5 to 2 percent, and annual inflation 3.5 to 4 percent at the end of the year. The 2018 World Cup kicked off here on Thursday and is scheduled to be held till July 15, with a total of 64 matches to be played at 12 stadiums in 11 Russian cities.
15.06.2018 16:39 Global GDP Growth Forecast at 3.2 Percent
The global economy is projected to carry forward its current momentum to generate a 3.2% growth rate in 2018, Conference Board, the New York-based economic research association, said in its latest Global Economic Outlook 2018. The forecast is slightly down from the association`s February prediction of 3.3%. A modest dip in global growth momentum is primarily driven by a maturing business cycle in the eurozone and a slightly weaker growth outlook in emerging markets, driven by US dollar appreciation and rising interest rates, as well as more challenging economic conditions in Brazil, Russia and Turkey, the report said. Momentum in mature economies improved last year and will continue growing at about the same pace through 2018. Mature economies are expected to grow by 2.4% in 2018, unchanged from 2017, the report said.