(I hope you find the "WORLD ECONOMY IN BRIEF" informative. MR-)
WORLD ECONOMY IN BRIEF
Date: 12/15/97
TOKYO:
Economy gets worse
The slowdown in Japan's economy is getting worse, Bank of Japan Gov.
Yasuo Matsushita said Friday.
''The economy has not clearly recovered from the impact of an increase
in the consumption tax. Rather, the slowdown trend is intensifying,'' he
said.
Meanwhile, a series of huge collapses of banks and brokerages helped
make November one of Japan's worst months ever for corporate
bankruptcies, a firm said.
Total debts held by bankrupt companies in November surged 29.8%
from a year ago to 2.01 trillion yen, the second-largest monthly figure
ever, Tokyo Shoko Research said. The total number of failures rose
5.6% from a year earlier, but fell 11.8% from October.
MOSCOW:
IMF now happy with budget
In a big boost for Russia's economic reform efforts, the IMF said it's
satisfied with the government's efforts to boost revenues and cut
spending.
The world lending body noted that an IMF mission that wrapped up
work in Moscow on Friday will recommend restarting a $10 billion loan.
Russian officials have said they expect $700 million in fresh loans to
arrive in early January.
The IMF had suspended the loan in October, citing Russia's failure to
meet budget revenue targets.
OTTAWA:
Central bank boosts rates
Canada's central bank raised its key lending rate by a half percentage
point to 4.5% Friday, its largest jump in more than two years.
Commercial banks announced similar hikes in their key rates.
It was the second rate increase by the Bank of Canada in less than three
weeks and the fourth this year. Before the first rate hike in June, the
bank's key lending rate was 3.25%. The move came as the Canadian
dollar flirted with its lowest levels in 11 years against the U.S. dollar.
Separately, Canada's third-quarter GDP, fueled by household demand
and investment, grew at a 4.1% annual pace, Statistics Canada said. The
implicit price deflator fell 0.1% after dropping 0.2% in the second
quarter.
BRUSSELS:
EU jobless rate unchanged
The European Union's jobless rate in October was 10.7% for the
fourth-straight month, according to Eurostat, the EU statistics office.
Luxembourg, the smallest country in the 15-nation EU bloc, had the
lowest jobless rate in October, with 3.7%, while Spain's 20.8% jobless
rate was highest. The statistical office said 18 million people were
unemployed in the EU at the end of October.
BUENOS AIRES:
Jobless rate drops
Argentine unemployment fell 2.4 percentage points in the five months
ended October to 13.7%, the government's statistical department said.
The rate was the lowest since October 1994, when it stood at 12.2%.
ZURICH:
Central bank sees faster growth
The Swiss National Bank expects economic growth of 2% next year, up
from a rise of 0.5% expected this year.
''The prospects for a step-by-step economic recovery have improved
over the course of the year,'' central bank president Hans Meyer said in
the bank's annual review.
MUNICH:
No global crisis from Asia?
Bundesbank President Hans Tietmeyer said he doesn't believe Asia's
economic and financial problems will lead to a global crisis.
The Bundesbank chief also said that while the problems will have a
dampening effect on price developments, he does not see a danger of
deflation on a global level.
MUNICH:
Asia hurts growth, forecast says
The Ifo Institute has revised down its forecast for real German GDP in
1998, in large part due to the effect of the financial crisis in Asia.
The institute now sees '98 German GDP growing at 2.6%, down from
the 2.75% it saw in its last forecast in August this year. In October, Ifo
and the five other major German economic research institutes jointly
forecast that German 1998 GDP would rise 2.8%. The financial crisis in
Asia had dampened its German growth forecast by ''about 0.25%'' next
year, Ifo said.
FRANKFURT:
Retail sales dip from '96
German retail sales in October stood 0.1% higher in nominal terms and
0.5% lower in real terms compared to October 1996, according to the
Federal Statistics Office.
For the first 10 months of 1997, nominal retail sales fell 0.8% and real
retail sales fell 1.6% compared to the same period in 1996. In
September, retail sales fell 0.5% in nominal and 0.9% in real terms.
(C) Copyright 1997 Investors Business Daily, Inc.
Metadata: E/IBD E/BRF E/SN1 E/WEIB |
