Euromoney (January Issue)
“US claims that Germany’s external surpluses are hindering global recovery are inaccurate and unjustified…. The complex reality is that Germany’s relative export success is not built on beggar-thy-neighbour policies or on the imposition of unnecessary austerity on its neighbours. It is founded domestically on higher productivity, better investment and substantial labour market reforms.”
Tags: Austerity, Beggar-thy-neighbour, Exports, Germany, Investment, Labour, Market reforms, Productivity, Recovery, Surpluses, US
Financial Times (November 15, 2013)
“Disappointing growth figures in the eurozone and Japan driven by weak export numbers have dashed hopes that a global economic recovery would gather pace in the second half of the year.” Third-quarter eurozone growth fell 0.2% to 0.1% while Japan’s growth rate dropped to 1.9%.
Tags: eurozone, Exports, Global economic recovery, Growth, Japan
New York Times (November 14, 2013)
“After a surprising spurt of strong growth in the first half of the year, the Japanese economy seems to be running out of steam as exports and consumer spending show signs of weakening.” The annualized growth rate was dramatically halved, from 3.8% in the second quarter to 1.9% in the third quarter. However, the consensus suggest the rate will increase in coming quarters ahead of the consumption tax hike in April 2014.
Tags: Consumer spending, Consumption tax, Economy, Exports, Growth, Japan, Weakening
Washington Post (June 20)
As the Federal Reserve moves closer to an eventual unwinding of its massive quantitative easing program, the dollar looks poised to gain, disadvantaging U.S. exports. “For investors around the world, the great unwinding has begun, with sharp swings in different world bond and stock markets as money is shifted in response to the likelihood of higher interest rates and possibly stronger economic growth in the U.S. Currency markets are moving too – and it may mean a further drag on U.S. exports that are already stuck in neutral.”As the Federal Reserve moves closer to an eventual unwinding of its massive quantitative easing program, the dollar looks poised to gain, disadvantaging U.S. exports. “For investors around the world, the great unwinding has begun, with sharp swings in different world bond and stock markets as money is shifted in response to the likelihood of higher interest rates and possibly stronger economic growth in the U.S. Currency markets are moving too – and it may mean a further drag on U.S. exports that are already stuck in neutral.”
Tags: Bonds, Currency markets, Exports, Fed, Quantitative easing, Stocks, Swings, U.S., Unwinding
Washington Post (May 27, 2013)
The U.S. has often benefited from the dollar which serves as the global exchange currency, but this is “turning into an extravagant curse. The United States wants export-led growth. So do most other countries. Not all can succeed…. The dollar’s global role puts the United States at a special disadvantage. It’s one cause of slow U.S. growth and high joblessness.”
Tags: Dollar, Exchange currency, Exports, Growth, Joblessness, U.S.
Time (April 30, 2013)
On the surface, relations look strong between the U.S. and South Korea, “thanks to a free-trade agreement, greater policy coordination and solidarity against North Korea’s provocations. But there is an unresolved question in their relationship: How much nuclear technology should South Korea possess?” South Korea wants enrichment and reprocessing rights. By 2030, the South seeks to supply 60% of its domestic energy needs with nuclear and aspires to be a major exporter of nuclear reactors. Wary of demands other countries might make, the U.S. remains opposed to expanding enrichment and reprocessing rights. Going it alone would “seriously strain the alliance. For now, South Korea appears set on gaining Washington’s seal of approval.”
Tags: Alliance, Enrichment, Exports, Reactors, Reprocessing, South Korea, U.S.
Wall Street Journal (November 25)
At a time when Japan really needs a leader, none of the candidates for Prime Minister measure up. “As giant problems in need of urgent solutions go, Japan is a thing of beauty. Its economy contracted by 3.5% on an annual basis from July to September, and slack exports and declining industrial production suggest another recession is coming. Demographic decline is well underway and Tokyo’s fiscal position—with debt roughly twice annual output—appears ever more precarious. So it’s a shame, as the Japanese head to the polls next month, that no candidate is offering even plausible solutions.”
Tags: Demographics, Economy, Election, Exports, Japan, Prime minister, Recession
Financial Times (November 11)
According to preliminary figures released by Japan’s Cabinet Office, the domestic economy contracted by 0.9% during the July to September period, amid falling exports and dwindling stimulus from rebuilding efforts. “As many economic indicators have deteriorated further since September, it seems likely that the country has entered its fifth technical recession – two consecutive quarters of contraction – of the past 15 years.”
Tags: Cabinet Office, Economy, Exports, Japan, Rebuilding, Recession, Stimulus
Economist (May 26)
“Despite a recent slowdown, the world’s second-biggest economy is more resilient than its critics think.” China is not dependent on foreign borrowing, enjoys a high saving rate (51% of GDP), has highly liquid banks, and very low central government debt (25% of GDP). “China plainly has enough fiscal space to recapitalise any bank threatened with insolvency. That space also gives the government room to stimulate growth again, should exports to Europe fall off a cliff.”
Los Angeles Times (May 9)
“Perhaps the only silver lining to the Great Recession is that it triggered a new focus on manufacturing in the United States. After 25 years of being sold a shiny vision of a service-dominated post-industrial economy, the U.S. is rediscovering how important it is to actually make things in order to spur innovation, raise wages, drive exports and lower the trade deficit.”
Tags: Exports, Great Recession, Innovation, Manufacturing, U.S., Wages
