Household spending is one of the main drivers of the Euro zone’s economy. GDP of the 19 countries sharing the euro decreased at the rate of 3.1% year-on-year in quarter one 2020. Household consumption was responsible for 2.5 percentage points and investment for 1 points of GDP, while net trade was -0.4 points, government spending…
Corona virus crisis is one of the negative drivers of the Japan’s economy. Japan’s economy decreased by 2.2% in quarter one 2020. Japan’s parliament will begin deliberating a second supplementary budget to fund part of a fresh $1.1 trillion stimulus package. This should aid in recovery of Japan’s economy from recession. Reuters
Employment is one of the main drivers of the US economy. The U.S. unemployment rate increased to almost 20% in May 2020 from 14.7% in April 2020. These can lead to further decline in the US GDP for 2020 quarter 2. Reuters
China is the world’s second-largest oil consumer. China’s oil demand has recovered to more than 90% of the levels seen before the Coronavirus pandemic which has boosted the recovery of Global Oil prices. Reuters
Recovery plans are part of the main drivers of the European union (EU) economy. The European Union’s executive unveiled a 750 billion euro recovery plan, while the EU’s long-term budget for 2021-27 is proposed to be 1.1 trillion Euros ($1.21 trillion).EU countries have agreed on 500 billion Euros of immediate rescue aid and plan worth…
U.S. leveraged loan market is part of the main drivers of the U.S. economy. The trailing 12-month default rate increased to 2.8% from 1.8% in 2019. These led the monthly tally of defaults in the U.S. leveraged loan market to hit a six year high which has negative affected businesses and the U.S. economy. Reuters
Interest rates are part of the main drivers of the Global economy. The European central bank (ECB) introduced negative rates in 2014, with its deposit rate currently -0.5%; while the Bank of Japan (BOJ) uses aggressive asset purchases to guide short-term rates to -0.1%. Under a negative rate policy, financial institutions are required to pay…
Benchmark interest rates are part of the main drivers of China’s economy. One-year loan prime rate (LPR) stands at 3.85 %, while the five-year tenor was at 4.65%. China’s Gross domestic product (GDP) shrank 6.8% in the first quarter from a 2019 first quarter as the Coronavirus outbreak and tough containment measures paralyzed activity across…
Monetary policy is one of the main drivers of Britain’s economy. BoE has made two emergency cuts to interest rates, taking the official cost of borrowing down to 0.1% from 0.75%. These led to Public expectations for decreasing inflation over the next year and next five years. Reuters
Monetary policy is one of the main drivers of Euro area’s economy. The European Central Bank launched new bond purchases worth 750 billion euros, bringing its planned purchases for this year to 1.1 trillion euro while leaving its -0.5% deposit rate unchanged. These should boost the eurozone economy reducing the negative impact of Coronavirus. Reuters
