By Esteban Duarte Bloomberg Tues., May 14, 2019 The Bank of Canada may be underestimating the extent of the cooling in the country’s housing market as well as its knock-on effects for the consumer-driven economy, according to research firm Capital Economics. Sales of pre-construction units in Toronto and Vancouver slowed in 2018, making it harder for developers to secure financing for their projects, said Stephen Brown, the firm’s senior economist for Canada. That in turn is likely to impact employment and consumption, which accounts for about 60 per cent of the country’s output. “The Bank of Canada is underestimating what’s to come in regards to residential investment,” Brown said in an interview Monday in Toronto. Capital Economics estimates that the Bank of Canada will cut rates twice this year, dropping the benchmark rate to 1.25 per cent, from 1.75 per cent. That’s far from consensus, with implied policy rates in the swaps … [Read more...] about Poloz underestimates housing slump, Capital Economics says
Capitalism, economic development, and gentrification. Major cities are being impacted by this trio. Some people revere them as the driving forces that keep America as a world leader; while others suffer. Simply put: Capitalism, economic development, and gentrification have not been on the side of black and brown people. Capitalism For capitalists, morality is not a factor in money making. To quote from Slavery’s Capitalism: A New History of American Economic Development: “For a Yoruba man or Igbo woman to become a slave required more than the violent extraction of individuals from their natal communities. It involved practices of quantification and abstraction to render people into units of exchange, an epistemological shift made manifest.” Economic Development Economic development is defined as the process by which the overall health, well-being, and academic level of the general population improves. Sounds utopian, doesn’t it? It certainly was for … [Read more...] about Capitalism, Economic Development, Gentrification: Who Benefits?
Capital Economics: PH growth to slow this yearThe Philippines will continue to post strong growth this year and the next but the pace will slow from 2018’s 6.2-percent expansion, a research consultancy said. In its Emerging Asia Economic Outlook report released late Thursday, London-based Capital Economics maintained its 6.0 percent growth forecast for both 2019 and 2020. For 2021, growth was projected to increase to 6.5 percent. “While this would be slow by recent standards, it would still make the Philippines one of the fastest growing economies in the region,” it said. The report cited a projected slowdown of the world economy, a worsening political climate, and a widening current account deficit as among the factors that could limit growth. “The main headwind is the poor outlook for the world economy. We expect global growth to remain weak over the coming quarters, which will weigh on export growth,” Capital Economics said.“The economy faces two … [Read more...] about Capital Economics: PH growth to slow this year
Will Martin, provided by Published 9:12 am CST, Monday, January 14, 2019 There is now conclusive proof that Europe is in the midst of an economic slump. Data released on Monday showed that industrial production throughout the whole of the eurozone dropped sharply, pointing to only a glacial pace of growth in the continent at the end of 2018. Two of the continent's four biggest economies, representing a total GDP of more than $5.5 trillion, are on the brink of recession. The global economy is fraught with problems at the start of 2019. President Donald Trump's trade war with China rumbles on; the US government shutdown is now the longest in history and is dragging on the country's economy; and in China, economic data points to a continuing slowdown for the world's second largest economy. As economists, investors, and policymakers focus intently on what's going on in the US and China, there's another major economic crisis brewing. This time, it's in Europe, where growth … [Read more...] about We now have conclusive proof that Europe is in an economic slump, and that two of its biggest economies are careering towards recession
By WSJ Mon., Jan. 14, 2019 This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. The partial federal shutdown is starting to nibble at the economy. The longer it goes on, the bigger the bite it will take out of growth. Good morning. Jeff Sparshott here to take you through key developments in the global economy. We'll also look at China's record trade surplus with the U.S., how slower growth in China is tripping up U.S. companies, and the upcoming Brexit vote. Let us know what you think by replying to this email. CLOSED FOR BUSINESS The partial federal government shutdown, now the longest on record, is curtailing infrastructure projects, food inspections and economic data. But on a more micro level, it is showing signs of disrupting commerce as hundreds of thousands of federal workers missed out on their first payday of the closure late last week, Josh Mitchell and Sharon Nunn report. … [Read more...] about Real Time Economics: Government Stays Shut, China Rattles Markets