European Union
■ The EU, its central bank and the IMF have put together
a €30bn (£35bn) bail-out package for Greece.
■ Following a poor winter, Germany’s economy is now
forecast to grow by 1.5% this year and 1.4% next, with
exports set to grow by 7.1% and 6.3% respectively.
■ Growth in Germany’s manufacturing sector in March
was the strongest for almost ten years; in France it
was the best since November 2006.
■ The death of Polish president Lech Kaczynski has
meant the election due in October will now be held
by the end of June.
Asia
■ The Asian Development Bank predicts growth
of 7.5% this year, compared with 5.2% in 2009,
before moderating 7.3% in 2011.
■ Singapore decided to allow its currency to rise against
the dollar to fight inflation that hit 32.1% annualised in
Q1 from -2.8% the previous quarter.
■ Kyrgyzstan president Kurmanbek Bakiyev was deposed
in an uprising on 7 April and has flown to neighbouring
Kazakhstan to be replaced by an interim government.
■ Taiwan’s economy is expected to grow by 5% in 2010
thanks to increased domestic demand and imports.
global globalround-up round-up
China to be top trader in Lat Am by 2015
According to a new report by the United Nations’ Economic
Commission for Latin America and the Caribbean, by 2015
China will displace the European Union in terms of trade
with the region.
IMF MD may return to political career
The International Monetary Fund’s managing director,
Dominique Strauss-Kahn, a former Socialist presidential
candidate, may find himself back in French politics
as Nicola Sarkozy reels from local election defeat.
BRIC
■ Brazil’s economy is expected to top the $1.7trn level
this year, largely on the back of its exports of farm
goods and iron ore, with GDP growth of 4.7%, up
from virtually zero growth last year.
■ Russia is hoping to join the World Trade Organisation by
the end of the year, when it will lower its customs duties.
■ India’s wholesale price index rose 9.9% in March
compared with a year earlier, its fastest pace in
17 months, following a similar rise in February.
■ China’s GDP grew at an annual rate of 11.9% in Q1,
while CPI came in just below expectations at 2.2%
Africa
■ Nigeria’s central bank has kept its lending rate
unchanged at 6% and its borrowing rate at 1%
but has restricted the amount of borrowing used to
buy shares that triggered a banking crisis last year.
■ Ghana’s central bank cut its benchmark interest rate for
the third consecutive month, this time from 16% to 15%,
while inflation fell for the ninth month in a row, to 13.3%.
■ In December, South Africa budgeted for $810m
(£528m) in credit from overseas investors – towards
a total expenditure of $2.25bn – but has attracted less
than $3bn.
IIF warns on emerging market cap flows
The Institute of International Finance has raised concerns
that capital flows to emerging markets are close to prefinancial
crisis levels but with tighter monetary policy
restricting their growth.
G7 GDP likely to show slowdown
The OECD expects GDP output for the combined G7
countries to be slower in Q1 and Q2 than Q4 last year.
The organisation estimates US GDP to be 2.4%, 2.3%
and 5.6% respectively.
ECONOMIC SUMMARY
MAY 2010 [www.portfolio-adviser.com] PORTFOLIO ADVISER
13
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