USA: the IMF has revised downwards their growth forecast to 2.1% for 2017 and 2018 due to US fiscal policy not as ‘expansionary’ as they thought in April.
Japan: Prime Minister Shinzo Abe called a snap election which will essentially decide if the country continues its economic stimulus. The election is expected to take place towards the end of October. A major part of his manifesto will be rising the Consumption Tax from 8% to 10% and redirect this money towards childcare for 3-5 year olds.
Japan: Q2 saw growth in the economy of 0.6%. Japan’s economy has now enjoyed its longest period of expansion in a decade. Inflation still remains a low levels despite the efforts of the Bank of Japan. Business confidence remains high, however corporate investment was just 0.5% growth vs an initial forecast of 2.4%. Private consumption grew 0.8%, and accounts for over half of Japan’s GDP.
India: Held their benchmark interest rate at 6% despite calls for the Central Bank to lower them due to the downturn in economic growth. Inflation rose 2% during July & August to filter out at a total for August of 3.36%. This accelerated rise was attributed to farm loan waivers with wage increases to civil servants.
The IMF reported good news for the global economy in a newly reported article. They cited that the global economy has not grown at such a fast rate since 2010. Economic growth rates are expected to be 3.6% for 2017 and 3.7% for 2018. The global trade imbalances have evened out to a less severe outlook due to the trade surplus of China falling due to more imports.
Nigeria: Having battled their worst recession in 25 years, finally reported a modest rise of 0.5% in economic growth following 5 quarters of contraction. Oil production is now a 1.85m barrels per day, up from 1m, and heading towards 2m. The country’s vice-president, Yemi Osinbajo, is seeking to ‘open up the economy’ highlighting agriculture as a potential outlet. Just 8% of arable land in Nigeria is currently being farmed.
Nigeria: The largest oil refinery in the world will be located in Nigeria and will be operational by 2018, saving billions on imports and making billions on exports according to investor Aliko Dangote. The refinery will cost $12bn.
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