Ireland swallows bitter pill, asks EU for loan

Musicians play Irish traditional music in a pub in central Dublin November 21, 2010. Ireland requested an international bailout on Sunday to tackle its banking and budget crisis, the euro zone’s second bailout this year as Brussels moves to protect Europe’s wider financial stability. – Reuters Photo

DUBLIN: Debt-crippled Ireland formally applied Sunday for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming Celtic Tiger and the economic envy of Europe.

European Union finance ministers quickly agreed in principle to the bailout, saying it “is warranted to safeguard financial stability in the EU and euro area.” But all sides said further weeks of negotiations loomed to define the fund’s terms, conditions and precise size.

Low savings, weak rating hinder recovery

Saturday, January 09, 2010
By Mansoor Ahmad

LAHORE: Numerous factors are impacting economic recovery which include very low savings rate, weak sovereign rating and absence of government’s writ to implement its decisions.

A study conducted by The News reveals savings rate in China and India is 40 per cent and 38 per cent of their gross domestic product respectively. Pakistan’s national savings rate stands at a dismal 11.8 per cent of the GDP. The Chinese and Indians have enough resources from national savings to finance their investments while Pakistan has to depend on foreign inflows to support investment.

ADB moot on lessons from global economic crisis

Saturday, January 09, 2010
By our correspondent

ISLAMABAD: Top officials from around Asia including Pakistan’s Minister for Finance Shaukat Tarin will attend an ADB sponsored two day regional conference at Manila to discuss the lessons of the global economic and financial crisis, and the policy adjustments needed to cushion the region against future shocks.

US shed 85,000 jobs in December, dampening optimism

Saturday, January 09, 2010
WASHINGTON: The US economy lost 85,000 jobs in December while the unemployment rate held at 10.0 per cent, the government said on Friday in a report dashing hopes of a turnaround in the ailing labour market.

The Labour Department report on non-farm payrolls was a disappointment to those hoping for growth in jobs, which is critical to recovery from recession. The figure was far worse than the consensus expectation for no change in overall employment levels, and came amid a wide array of predictions ranging from steep losses to modest gains.

‘World recovery not guaranteed in 2010’

Saturday, January 09, 2010
PARIS: The world economy may not emerge out of crisis in 2010 due to “bubbles” created by the huge injections of money used to keep the financial system operating, World Trade Organisation chief Pascal Lamy said on Friday.

“You have to be realistic, it is not guaranteed,” the WTO director general said on French radio when asked whether the world economy would recover in 2010.

Eurozone unemployment rate hits 10 per cent

Saturday, January 09, 2010
BRUSSELS: One in 10 people who could be working is now unemployed across the 16 countries which use the euro, the EU said on Friday as the human cost of the economic crisis was laid bare.

New figures for November 2009 showed that the seasonally-adjusted unemployment rate hit a miserable 10.0 per cent, with 102,000 more people left without their own income compared to October.

Japanese executives see slow economic recovery

Wednesday, January 06, 2010
TOKYO: Japan’s business leaders warned on Tuesday the economy was unlikely to recover until the second half of this year as the nation faces the threat of being overtaken by China as the world’s second largest economy.

“Unfortunately, the Japanese economy has yet to be on course to sustainable recovery,” Fujio Mitarai, chairman of Japan Business Federation, told a joint news conference after a New Year party with the nation’s top executives.

IMF sees Pakistan GDP expanding at 3pc in 2009-10

ISLAMABAD: The International Monetary Fund (IMF) says the political and security situation in Pakistan remains challenging, economic reform does not command broad support and adverse security developments continue to hurt the confidence of domestic and foreign investors. 
 
As a result, projected economic growth for 2009-10 would be a modest three per cent, IMF says in a programme note on Pakistan issued following the approval of the fourth tranche of $1.2 billion by the Executive Board in Washington on Wednesday.

Greek parliament to adopt 2010 crisis budget

Thursday, December 24, 2009
ATHENS: Greece’s parliament is set to adopt a crisis budget late on Wednesday aimed at bringing order to the debt-hit country’s chaotic public finances and restore its badly dented credibility abroad.

The ruling Socialists, who hold a ten-seat edge in the 300-seat house, are expected to carry the midnight vote on the 2010 plan that aims to cut Greece’s 30.5-billion-euro public deficit by 8.4 billion euros (12 billion dollars).

Britain stuck in recession

Wednesday, December 23, 2009
LONDON: Britain remains the last major economy in recession according to official data released on Tuesday, although signs of recovery emerged as the country’s output shrank less than previously forecast.

The Office for National Statistics said that British gross domestic product (GDP) contracted by 0.2 per cent during the July-September period compared with the previous three-month period.

Greek financial sector hit by new credit doubts

Saturday, December 19, 2009
ATHENS: Greece suffered a fresh blow to its financial standing on Friday when Standard & Poor’s downgraded two top banks and warned that the Greek economy was in worse shape than it had thought.

The latest move by the ratings agency followed its downgrade late Wednesday of Greece’s sovereign credit despite pledges by the government to tame a huge national debt and a gaping public deficit. And it came before a critical crisis weekend debate on budget action to shore up the economy, which is drowning in debt, while also shoring up market and EU confidence that the government will make urgent reforms.

British borrowing rockets to record high

Saturday, December 19, 2009
LONDON: Overspending in recession-hit Britain soared to a record in November, official data showed on Friday, highlighting the country’s debt as alarm over public finances in Greece rippled across Europe.

Britain’s public sector net borrowing requirement the Labour government’s preferred measure of public finances hit 20.3 billion pounds (23 billion euros, 33 billion dollars) in November.

Ireland edges out of deep recession

Friday, December 18, 2009
DUBLIN: Ireland emerged from a deep recession in the third quarter as its economy grew 0.3 per cent compared with the previous three months, official data showed on Thursday.

The joy was dampened however by data showing gross domestic product (GDP) had still shrunk 7.4 per cent in the three months to September compared with the same period of 2008.

“Initial estimates ... on a seasonally adjusted basis, for the third quarter of 2009 show ... a small increase of 0.3 per cent in GDP compared with the previous quarter,” the Central Statistics Office (CSO) said in a statement. Ireland’s former roaring Celtic Tiger economy tumbled into a fierce recession during the first half of 2008, becoming the first eurozone nation to do so as the global crisis undid years of progress and development.

IMF sees fragile global economic recovery

 











WASHINGTON: A fragile global economic recovery is underway, and a double-dip 
recession remains unlikely, the International Monetary Fund said on Thursday.

IMF spokeswoman Caroline Atkinson told a regular briefing for reporters that questions remained about the sustainability of the recovery, which has so far been driven by policy actions by various governments and central banks.

Britain predicts deeper recession

Thursday, December 10, 2009
LONDON: Britain forecast a far deeper recession than thought on Wednesday, with the economy set to shrink 4.75 per cent this year, while it used a budget statement to also unveil a tax on bankers’ bonuses.

“The task today is to ensure the recovery and promote long-term growth,” Finance minister Alistair Darling told parliament, presenting a mini-budget report, a precursor to the annual 2010/2011 budget due early next year.