Nigeria is facing a combination of alarming economic indicators, including a 30% population growth in 10 years, an underperforming economy, and a rise in severely financially distressed adults, all highlighting the need for urgent adjustments and reforms to avoid a disastrous outcome.
Inflation in the US has cooled to 3.1%, mainly due to falling gas prices, but stubborn prices such as shelter costs remain high, making it difficult for some people to feel the decrease in inflation.
Former President Donald Trump warned at a rally in Iowa that if he is not elected president in 2024, the U.S. economy will experience a depression similar to the one in 1929, despite the Dow Jones reaching an all-time high; however, economists have pointed to his handling of the COVID-19 pandemic as contributing to the economic downturn during his presidency.
The Economic and Social Research Institute (ESRI) defends the Irish government's €14bn budget giveaway, stating that the country needs significant investment, despite accusations of overspending; however, the ESRI predicts a recession in 2023 due to falling exports and lower foreign investment.
The Asian Development Bank (ADB) reported that Pakistan's recovery is hindered by low confidence and high inflation, while developing Asia as a whole continues to experience robust growth despite global challenges.
The World Bank has criticized the lack of transparency from the Nigeria National Petroleum Corporation (NNPC) regarding the financial gains from fuel subsidy removal, including the impact on revenues, subsidy arrears, and retail petrol prices, stating that the implicit fuel subsidy may have reemerged, keeping net oil revenues lower than expected. The bank also highlighted the need for clarity on oil revenues and urged the NNPC to settle its arrears and increase oil production.
The Economic and Social Research Institute (ESRI) has lowered its growth forecasts for the Irish economy due to reduced spending by households and businesses, rising interest rates, and a global economic slowdown. Modified domestic demand (MDD) is projected to expand by 0.6% this year, while GDP is expected to contract by 2.7% before recovering by 2.3% in 2024. The slowdown is primarily driven by a decline in investment activity, higher financing costs, and weakening global conditions. Despite the moderation in private consumption, housing investment is expected to increase to meet demand. The labor market remains resilient, with employment levels set to rise, although unemployment has slightly increased due to a reclassification of immigrant workers. The ESRI acknowledges the government's establishment of sovereign wealth funds to capture windfall corporate taxes but questions the appropriateness of the net core spending rule, which the government is set to exceed next year.
China's new-energy industry is facing overcapacity issues, with an excess supply of products such as electric car batteries and solar panels, which could hinder its potential as an economic driver and lead to negative consequences for China's economy and global trade.
The Dow Jones Industrial Average reached a record high, signaling optimism that the economy is slowing down enough to control inflation without causing a recession, as the Federal Reserve intends to hold rates steady due to progress on inflation.
Shares in Asia are mostly higher and the Dow Jones Industrial Average reached a record high as the Federal Reserve suggested interest rate cuts are likely next year, although Tokyo's Nikkei 225 fell due to a stronger yen against the US dollar, impacting Japanese exporters' profits.
The NZD/USD pair lost ground near 0.6175 after weaker than expected New Zealand GDP data, while the Federal Reserve's decision to keep interest rates steady at its December meeting caused the US dollar to decline.
The outbreak of bird flu at Cal-Maine Foods' facility has led to concerns about rising egg prices, potentially impacting consumer choices and causing them to pull back on spending.
Several major companies in the United States have announced layoffs during the holiday season, causing concern among workers and raising questions about the timing and impact of these job cuts.
The Federal Reserve's decision to pause rate hikes could lead to lower mortgage rates and potential rate cuts in 2024, providing relief for homebuyers and those looking to refinance.
Argentina's new President Javier Milei has announced a 50% devaluation of the country's currency, along with cuts to subsidies and public works projects, as measures to address the economic crisis, which includes high inflation, a plunging currency, and a large fiscal deficit.
The Bank of Japan is preparing to tighten its monetary policy as inflation and wage hikes in the country enter a virtuous cycle, but the potential interest rate cuts by other central banks, including the U.S. Federal Reserve, could complicate its plan.
The US job growth over the past six months has been driven primarily by the government, private education and health services, and leisure and hospitality sectors, without which the economy would have only added 7,000 jobs; other sectors, such as transportation and warehousing, experienced little growth or even job losses.
The Federal Reserve's decision to keep interest rates unchanged for the remainder of 2023 has left investors uncertain about the future of the US economy and markets in 2024, as experts highlight the lingering impacts of the COVID-19 pandemic and emphasize the importance of nuanced analysis of inflation and labor market reports when anticipating the Fed's future actions.
China's deflationary trend, marked by a significant decline in the consumer price index, could lead to a slump in commodities and put the U.S. at risk of outright deflation as well, with potential implications for interest rates and broader market volatility.
Many Americans are forced to spend thousands of extra dollars each year to maintain their standard of living due to the highest inflation rate in 40 years.
Argentina's new government, led by libertarian President Javier Milei, plans to raise export taxes to 15% on some grains, not including soy, as part of efforts to fix the country's struggling economy.
Former RBI governor Raghuram Rajan emphasizes the importance of not putting tariffs on computers for a big software exporting country like India and suggests that interest rates may remain elevated next year.
Javier Milei, Argentina's new President, has implemented deep spending cuts and a currency devaluation, plunging the nation further into austerity and economic pain.
Federal Reserve officials have decided to leave interest rates unchanged for the remainder of 2023 but have signaled potential rate cuts in the next year amidst concerns of rising inflation and its impact on US workers.
Average monthly mortgage payments in the U.S. have nearly doubled since the start of the Biden administration due to surging interest rates and rising housing prices, prompting experts to suggest that renting may be a more affordable option for potential buyers. The situation is expected to persist, with high interest rates likely to continue for an extended period. Despite a recent slight decline in home loan rates, the Federal Reserve's efforts to elevate interest rates have led to a 90% increase in average monthly payments on new homes. First-time homebuyers face significant challenges in saving for a down payment, further complicating the market. However, the rental market and alternative solutions, such as moving to more affordable areas, might provide temporary relief.
The Federal Reserve plans to cut interest rates by a total of 0.75% in the coming year, signaling a shift from previous forecasts of a 0.50% cut, as they expect inflation to fall and the economy to slow down.
MarketWatch provides live coverage of the Federal Reserve interest-rate decision, dot plot forecast, and Chair Jerome Powell press conference.
Germany has introduced a new spending plan for its 2024 budget, which includes cuts in climate change programs but maintains military aid to Ukraine, in order to comply with constitutional rules against new debt.
US Treasury Secretary Janet Yellen believes the US economy is on track for a soft landing, but Conning CIO of North America, Cindy Beaulieu, disagrees, citing the dislocation caused by the COVID-19 pandemic and predicting a mild recession in late Q1 or Q2 of 2022.
Somalia has achieved debt relief after a decade of reforms, but it still faces challenges of debt sustainability and must focus on attracting investment and developing its economy in order to build socioeconomic and climate resilience.
China's leaders are focusing on industrial policies to stimulate domestic consumer demand in 2024, with President Xi Jinping expected to maintain financial market stability without pushing massive stimulus policies, while foreign investors remain cautious due to domestic regulations; in addition, the chip rivalry between China and the United States appears more like a pillow fight than a chip war.
U.S. new vehicle sales are predicted to increase by only 1% next year, affected by high interest rates, while electric vehicle market share is expected to slightly rise to 8% by 2024, according to car shopping website Edmunds.
Small business sentiment dropped significantly in the last quarter of the year due to concerns about the economic outlook, worker shortages, and inflation, with the Small Business Index sinking to 61.3, reflecting a negative impression about the national economy.
Mortgage applications rose last week as a drop in mortgage rates made them more financially viable, with refinancing activity also increasing, fueled by lower average rates.
A cash-strapped millennial, Ben Keenan, has gone viral on TikTok after seeking a "platonic soulmate" to share his bed and split expenses due to the high cost of living amid inflation. Keenan's plea has sparked discussions about the challenges faced by single individuals in affording basic necessities and has led to the creation of the term "inflationship" on social media. Other individuals around the world have also resorted to renting out their beds or seeking unconventional living arrangements to cope with rising costs.
The Federal Reserve's decision to keep interest rates high will continue to impact borrowers with higher credit card rates, car loans, and mortgages, while savers will benefit from higher rates on savings accounts and certificates of deposit.
The Federal Reserve's efforts to control inflation through interest rate increases have had mixed effects on the economy, with unemployment remaining steady but the housing industry suffering due to higher mortgage rates.
Inflation has slowed down, but people are still struggling due to varying price increases across different goods and services and differences in personal spending habits and location.
Germany narrowly averted a political and budgetary crisis surrounding its "debt brake" rule, but the compromise will lead to unnecessary austerity and could undermine its climate and energy transition and economic recovery, highlighting the need for reform.
A recent survey revealed that inflation and rising costs are causing more retired Americans to rejoin the workforce, with 61% stating that rising costs are the primary reason for their return to work.
U.S. Treasury Secretary Janet Yellen expressed confidence that inflation would reach the Fed's 2% target by the end of 2024, noting that inflation has come down and the job market has settled.
Treasury Secretary Janet Yellen suggests that the Federal Reserve should consider lowering interest rates as inflation decreases in order to maintain optimal economic conditions.
The Federal Reserve does not directly control interest rates but instead influences borrowing costs through its target range for the federal funds rate.
J. Larry Jameson, the newly appointed interim president of the University of Pennsylvania, acknowledges the recent turmoil at the university and calls for unity and a new chapter in Penn's history.
Chinese economic leaders' plan for 2024, prioritizing industrial policy over stimulus, disappoints investors and leads to a downward trend in Chinese stocks.
The price of olive oil has skyrocketed due to rising demand, supply shortages caused by extreme weather events, and export controls, leading to significant challenges for producers and consumers.
The World Bank suggests that the Nigerian government may be subsidizing fuel, as the current price does not reflect the actual cost, estimating that Nigerians should be paying around N750 per litre rather than the current N650 per litre.
Wholesale inflation in the US eases in November, providing further evidence that high consumer prices are starting to loosen their grip on the economy.
Surging interest rates and limited financing options pose a significant threat to poor countries, potentially leading to a "lost decade" as their debt burdens become unsustainable, according to the World Bank.
Urgent action is needed to prevent the escalating debt repayments by the world's poorest countries from turning into a crisis as high interest rates are diverting funds from crucial sectors like health, education, and climate change, warns the World Bank.