Developing countries, such as Thailand, are facing the challenge of an ageing population before they have achieved high levels of economic development, leading to increased spending on healthcare and pensions and a lack of investment in productivity-boosting measures. Other developing countries in Asia, such as Indonesia and the Philippines, are likely to face similar challenges. These countries must start planning for old age earlier and consider reforms such as increasing retirement ages, nurturing financial markets, and increasing female participation in the labor force.
Many Asian countries, such as Sri Lanka, Thailand, and Vietnam, are experiencing rapid aging populations before they have achieved economic prosperity, posing significant economic and social challenges.
Over 2,000 people have died and many more have been injured or made destitute in Afghanistan due to recent devastating earthquakes near the city of Herat, highlighting the meagreness of the Taliban state and the struggle of foreign aid agencies to make up the shortfall in assistance to the country.
The conflict in the Middle East poses a threat to the Federal Reserve's efforts in curbing inflation, particularly due to concerns about the impact on oil prices and energy markets, which could lead to higher prices and slower economic growth.
Russia's rouble strengthens as Moscow imposes capital controls to stabilize the currency, similar to measures taken after the invasion of Ukraine in 2022, but experts warn that the rouble may weaken again in the future.
U.S. tech workers are paid 46% more on average than their Canadian counterparts, with American workers making $122,600 per year compared to $83,700 for Canadian workers, highlighting the need for increased efforts to scale Canadian tech companies and attract investment in order to compete with the U.S. sector and prevent brain drain.
As the U.S. national debt continues to rise and interest rates increase, concerns are growing among top investors about buying U.S. Treasurys and the potential for a debt crisis in the country. Regulators are working on reforming the structure of the Treasury market to avoid market failures like those seen during the COVID-19 pandemic, but progress has been slow and questions remain about whether it's enough. The rise of electronic trading and high-frequency-trading firms has also brought new challenges and instability to the Treasury market. With a growing supply of government debt and little discussion about deficit reduction, the stability and future of the Treasury market are uncertain.
Sri Lanka has reached an agreement with the Export-Import Bank of China to cover a substantial amount of its outstanding debt, providing the necessary fiscal space for the country to implement its reform agenda and secure the release of the second tranche of an IMF loan.
The World Bank's Africa Pulse report reveals the top 10 Sub-Saharan African countries with the lowest economic growth in 2023, including Sudan, Equatorial Guinea, and South Sudan, among others.
Despite a slight improvement in month-to-month price gains, inflation remains a challenge for the Federal Reserve as prices continue to rise, particularly in areas such as housing and gas, burdening families and straining budgets. The Fed's efforts to control rising costs for gas, groceries, and rent are limited, leaving policymakers searching for effective solutions.
US inflation rose 3.7% in September, surpassing economists' expectations and remaining well above the Federal Reserve's target of 2%.
The Consumer Price Index rose 3.7% for the 12 months ended in September, with high gas prices and shelter costs contributing to inflation, although food prices matched overall inflation for the first time since early 2022, and underlying inflation trends are moving in the desired direction of the Federal Reserve.
The number of Americans applying for unemployment benefits remains unchanged, indicating a strong job market amidst higher interest rates and falling inflation.
Russia has reintroduced some capital controls in an effort to stabilize the ruble as the cost of war with Ukraine continues to impact the economy, with the currency gaining 3.4% after Moscow announced exporters would be forced to convert foreign revenues into rubles. These controls are similar to those implemented in 2022 after the start of the conflict, where Russia ordered exporters to swap 80% of their foreign currency revenues for rubles and banned residents from making bank transfers outside of Russia. The ruble has lost over a third of its value against the dollar this year due to the war and declining revenue from the energy industry.
The Governing Council of the European Central Bank (ECB) decided to raise key interest rates by 25 basis points, aiming to reinforce progress towards the 2% inflation target, as market conditions continue to show inflation risks despite the weakening euro area economy.
Congress leader Shashi Tharoor faced criticism from Israel's former ambassador to India for not labeling Hamas as a terror organization, however, Tharoor clarified that he followed India's stance on the issue.
Sri Lanka has reached an agreement with the Export-Import Bank of China to cover $4.2 billion of outstanding debt, which will help the country secure a second tranche from the International Monetary Fund (IMF) and move towards economic recovery.
Developing countries, particularly in Africa, are facing a crippling debt crisis due to multiple crises, such as the COVID-19 pandemic, the war in Ukraine, and climate change, with billions of people living in countries that spend more on interest payments than on education or health, posing significant challenges for debt relief efforts.
The new head of the World Bank, Ajay Banga, warns that there is no simple solution to the $235 trillion global debt crisis, stating that there is no "magic wand" to wipe it away.
Recent college graduates in China have lowered their salary expectations and are more willing to take blue-collar jobs and relocate to lower-tier cities due to the challenges of finding work in the post-pandemic recovery, according to a report by the Liepin Big Data Research Institute, with an average monthly salary expectation of 8,033 yuan (US$1,100) - slightly lower than last year but higher than the pandemic-hit 2021.
Germany faces a contraction in economic growth, with the economy expected to shrink by 0.4 percent in 2023, making it the only major world economy to post negative growth figures this year, due to factors including the energy price crisis and weakening global economic partners.
Chinese property giant Country Garden Holdings is facing financial difficulties, as it missed a loan repayment and warned that it may not be able to repay all of its creditors, amid a struggling property market and a massive debt burden. Experts believe that the knock-on effects of a property bust in China, a market as big as China's, will have remarkable consequences and hinder the country's economic growth. The government is expected to provide some stimulus, but there are doubts about its effectiveness in addressing the underlying structural issues in the Chinese economy.
Amid the pandemic, high-income families are leaving high-cost cities for more affordable areas like Florida and Texas, resulting in a significant impact on states' tax bases and finances, with California and New York experiencing the largest outflow of wealthy residents.
China's real estate sector, particularly Country Garden, is facing severe financial distress, indicating a significant downturn in the Chinese economy as a whole.
The UK economy's marginal growth in August has led to expectations that interest rates will remain unchanged next month, with analysts describing the figures as lacklustre and warning of the negative impact of higher borrowing costs and the higher cost of living on consumers and businesses. The economy is currently not in recession but concerns over weak growth persist, making it a key issue in the upcoming election.
The International Energy Agency (IEA) has lowered its forecast for oil demand growth in 2024 due to global economic conditions and increased energy efficiency, but raised its forecast for 2023 demand; however, the IEA warns that if OPEC+ unwinds its supply cuts in January, the market could shift to surplus.
The number of births in China hit a record low last year, dropping by 10% despite government efforts to support parents and concerns about the country's demographic balance.
Underdeveloped economies face challenges such as corruption, political instability, weak institutions, and exploitation by multinational corporations, resulting in low human development indices, limited access to resources, and poor economic conditions. Some of the most underdeveloped countries in 2023 include Rwanda, Uganda, Togo, Gambia, Mali, Burkina Faso, Guinea-Bissau, Sierra Leone, Madagascar, Malawi, Afghanistan, and Chad.
The South African presidency plans to involve the private sector in fixing the collapse of the state-run ports and freight-rail sector, with proposals including allowing private companies to operate ports and rail routes, and even potentially operating the lucrative coal and iron-ore rail export lines privately. This shift towards relying on the private sector reflects a departure from the African National Congress' traditional stance on state companies leading economic growth. The urgency to address the logistics system's decline is highlighted by falling export volumes and the inefficient performance of container ports.
The UK GDP YoY growth rate is in line with expectations, showing a positive response to July's contraction, while the three-month average also meets forecasts, indicating a choppy economic outlook domestically and internationally as global growth slows down.
Bank of Japan board member Asahi Noguchi emphasized the need to improve wage growth in order to achieve sustainable inflation, suggesting that the central bank should maintain its monetary easing policy for now.
China is increasing its wheat imports to record levels following damage to its domestic crop, as it seeks to secure cheap supplies after heavy rains; the country's growing appetite for wheat adds uncertainty to supply chains already vulnerable to war and protectionist trade policies.
Argentina's outgoing president, Alberto Fernandez, has laid criminal charges against presidential candidate Javier Milei, accusing him of "public intimidation" after Milei criticized the Argentine peso; Milei responded by accusing Fernandez of dirtying the electoral process as the country's already-heated election campaign continues.
India's demographic shift towards an aging population poses a significant economic challenge and could hinder the realization of the country's demographic dividend, highlighting the need for sustained economic growth and capital investment to support the elderly and boost productivity.
Chinese miners will face the greatest job losses due to the transition away from coal to renewable energy, with Shanxi province expected to cut 241,900 jobs by 2050.
Mexico has issued a decree to provide tax breaks for companies that relocate operations to the country, aiming to attract industries such as carmaking and semiconductors that want to move their offshore operations closer to their customers in the wake of supply chain disruptions in Asia during the COVID pandemic.
Most Japanese companies expect a continued slowdown in China's economy until 2025, with many looking to shift production to other markets, according to a Reuters poll, despite recent signs of recovery in China's economic activity.
Higher interest rates pose a greater risk to younger workers and those with lower incomes, potentially exacerbating inequality and impacting the economy, according to a member of the Bank of England's Monetary Policy Committee. Dr. Swati Dhingra has expressed concerns about the household and business impacts of interest rate hikes, warning that the economy's slow growth and the potential for recession may lead to difficult times ahead.
The upcoming monthly inflation report is expected to show that inflation in the US is cooling off, with overall prices for consumers rising by 0.2% compared to August and 3.6% compared to a year ago, indicating slower price increases in September than in August. However, if the report reveals that inflation remained higher than expected, especially in core areas, it may prompt the Federal Reserve to raise interest rates again, further slowing the economy.
U.S. wholesale prices rose at the fastest pace since April, indicating persistent inflationary pressures despite higher interest rates; however, there is hope that inflation may ease as producer costs make their way to the consumer.
Several housing groups, including the Mortgage Bankers Association, are urging the Federal Reserve to reduce rates as mortgage rates climb to 7.5%, fearing that further increases may lead to a recession.
The finance leaders of the G7 may discuss the potential impact of escalating tensions in the Middle East on the global economy during their meeting.
Former IMF Chief Economist Kenneth Rogoff predicts that bond yields will remain high for a prolonged period, and warns that the Federal Reserve will have a challenging task in anchoring inflation expectations.
Gasoline prices in the United States are expected to continue dropping, despite the Israel-Hamas conflict, due to seasonal trends and the country's domestic production capacity.
The Labour Party in the UK is embracing a supply-side revolution, fusing elements of free-market economics with the left's emphasis on subsidies, labor rights, and public services, in an attempt to revive the country's ailing economy and drive investment, with the goal of achieving the highest GDP growth in the G7.
China's rise in scientific and technological prowess is leading to growing tensions with the United States, resulting in a decline in research collaboration and strained academic relations between the two countries, which will have negative consequences for both sides.
Many young Americans are concerned about the difficulty of purchasing a home due to the high cost of real estate and stagnant salaries, particularly in cities experiencing intense gentrification, with Los Angeles, California seeing the largest increase in housing prices at 23.8% since September 2022, followed by San Diego, California and Richmond, California.
Germany has revised its economic forecast for 2023, projecting a 0.4% decline in GDP due to the energy price crisis, inflation concerns, and weakening global economic partners, such as China.
The Federal Reserve officials are uncertain about the U.S. economy's outlook and plan to proceed cautiously in deciding whether to raise interest rates, with some acknowledging the risks of raising rates too high or not enough to curb inflation.
The Federal Reserve officials were uncertain about the future of the economy and decided to proceed with caution in their interest-rate policy, weighing the risks of overtightening versus insufficient tightening. They were divided on the frequency of rate hikes, with a majority supporting one more increase, but some feeling that the policy rate was nearing its peak. The recent spike in long-term bond rates has led to speculation that the Fed may not raise rates again this cycle.