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Tag: economic

'No deal' Brexit could lead to economic collapse – BoE

'No deal' Brexit could lead to economic collapse – BoE

Business
The Bank of England says that a disorderly Brexit could push the UK towards the biggest slump in modern memory. It says that a disorderly Brexit, involving no new trade deals, severe disruption at borders and uncertain economic conditions, could lead to the British economy shrinking by nearly 8% - more than the effect of the financial crisis.In an 88-page document, the bank also claims that a disorderly Brexit could lead to house prices falling by 30%, unemployment nearly doubling and inflation spiralling to 6.5%.Under those circumstances, the interest rate could rocket to 5.5%, it adds. ...
High energy prices threaten economic damage, but likely to continue: IEA

High energy prices threaten economic damage, but likely to continue: IEA

Business
Oct. 12 (UPI) -- Expensive energy, including the prices of oil, gas and coal at "multi-year" highs, pose a threat to economic growth worldwide, particularly to emerging market economies that are also seeing depreciations of their currencies, the International Energy Agency said Friday. The agency showed particular concern that with peaks in both crude oil production and crude oil demand, both at nearly 100 million barrels per day, the spare capacity of the world has been reduced "to only 2 percent of global demand." "This strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on the global economy," the agency said in its report. "For many developing countries, higher international prices co...
What's behind Italy's economic turbulence?

What's behind Italy's economic turbulence?

Business
The controversy surrounding the Italian government's spending plans has led to continued nervousness on the financial markets.The budget set out by the country's coalition government last month - which involves greater spending than previously planned - had already sent Italian share prices lower and knocked the value of the euro.The cost of government borrowing for Italy, represented by the yield (or interest rate) on its bonds (the debt issued by the Italian government), has been rising, demonstrating that investors are getting twitchy.Markets are concerned that the government's plans mean the country is heading for a stand-off with the European Commission.Why is the Italian government's financial situation back in the news? The government that took off...
The obvious Brexit link in economic slowdown

The obvious Brexit link in economic slowdown

Business
No excuses.Try as one might to blame the weather for the weakness of these GDP figures, to judge from what we have just heard from the Office for National Statistics, the economy was starting to sag well before the Beast from the East came in and disrupted UK economic activity.Consumers - the engine of the UK economy for decades - have been spending less and less in recent quarters.The services sector, which grew by around 2% a year in 2015 and 2016, is now growing by around 1% a year.Image:Snowy weather in February and March exacerbated the slowdown in the economyThe construction sector - always volatile - was certainly affected by the Beast. But activity was already trending lower well before the temperatures dropped.All of which is why overall growth is quite so weak. The first quarter'...
UK economic growth revised downwards

UK economic growth revised downwards

Business
The UK economy expanded by less than previously thought in the last three months of 2017, official figures say.GDP grew by 0.4% in the October-to-December period, the Office for National Statistics (ONS) said, down from the initial estimate of 0.5%.The revision was due to slower growth in production industries, the ONS said. In 2017 as a whole, the economy grew by 1.7%, also slightly lower than previously thought and the weakest since 2012.The ONS had previously estimated that the economy grew by 1.8% last year.The statistics body said that household spending grew by 1.8% last year, also the slowest annual rate since 2012. It said the slowdown was partly because of shoppers facing higher prices in stores."A number of very small revisions to mining, energy generation and service were enough...