Asia Economics Update New Zealand set for a prolonged fiscal tightening The half-yearly Economic and Fiscal Update published overnight in New Zealand makes it clear that the May Budget will be a tough affair even though 2011 will be an election year. It is essential that... 14th December 2010 · 1 min read
Europe Economics Focus What can euro-zone policymakers do? Euro-zone policymakers face enormous challenges to avoid a near-term financial disaster, reduce governments’ debt burdens in the medium term and foster economic growth. Given the scale of these tasks... 13th December 2010 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Dec.) Most of the peripheral euro-zone economies, excluding Spain, are still struggling to meet their budget deficit targets for this year, suggesting that additional fiscal measures will be needed next... 9th December 2010 · 1 min read
Europe Economics Update Irish Budget fails to lift the gloom As anticipated, the first vote on the Irish 2011 Budget was passed by Parliament late last night. But while this reduces the chances of the Government being unable to tap its bail-out facility for... 8th December 2010 · 1 min read
US Economics Update Stimulus proposals could provide sizeable boost to growth The package of tax proposals agreed by the Obama administration and Republican leaders constitutes an additional fiscal stimulus worth slightly less than $300bn, or 2% of GDP, above and beyond what we... 8th December 2010 · 1 min read
UK Economics Update OBR sounds a cautious note The downgrades to the Office for Budget Responsibility’s economic growth forecasts for the next two years are hardly a vote of confidence in the Government’s claim that the economy is capable of... 29th November 2010 · 1 min read
Europe Economics Update Irish bailout details provide markets with little comfort The further details of the Irish bailout package and the euro-zone’s permanent crisis resolution mechanism confirm that Germany and other European hardliners are in no mood to make major concessions... 29th November 2010 · 1 min read
Europe Economics Update Ireland's fiscal plans will do little to ease markets' fears The recent increase in political uncertainty and rising concerns about banks’ near-term funding needs have only added to Ireland’s problems. Indeed, the further details on the shape of the fiscal... 24th November 2010 · 1 min read
Europe Economics Update Will Spain be the undoing of the euro-zone? With Ireland finally accepting a bailout, attention has turned to who might be next. Spain’s position is far less precarious, but there are some worrying similarities. And given the economy’s size... 23rd November 2010 · 1 min read
Emerging Europe Economics Focus Hungary's 2011 Budget: an exercise in smoke and mirrors It looks increasingly likely that the Hungarian government will meet, or even outperform, its targets for reducing the budget deficit over the coming years. But with temporary revenue raising measures... 23rd November 2010 · 1 min read
Asia Economics Update Sri Lanka targets growth over fiscal consolidation Sri Lanka’s budget for 2011, announced today, aims to sustain the upswing by cutting taxes and by lifting private sector investment. While GDP growth will probably stay rapid next year, the budget... 22nd November 2010 · 1 min read
Europe Economics Update Ireland still has a mountain to climb News that Ireland has formally requested financial support has prompted a further drop in Irish bond yields and a small rise in the euro. But Ireland still faces a daunting set of fiscal and economic... 22nd November 2010 · 1 min read
Europe Economics Weekly What will an Irish bailout package look like? Over the past week, it has become increasingly clear that it is now a matter of when, rather than if, Ireland receives some kind of financial support package. But there are still several unanswered... 22nd November 2010 · 1 min read
Europe Economics Update Will Portugal inevitably follow Ireland? With Ireland on the brink of accepting some kind of bail-out, fears of contagion have intensified. While Portugal is clearly the next in line, it is in a better position than Ireland, which means that... 19th November 2010 · 1 min read
UK Data Response Retail Sales & Public Finances (Oct.) The latest UK retail sales figures suggested that the consumer spending recovery, while a bit lacklustre, hasn’t petered out yet. But another set of poor public finances cast further doubt on whether... 18th November 2010 · 1 min read
Latin America Economics Update Mexican budget papers over the cracks... again Earlier this week Mexico’s Congress passed the 2011 budget. On the face of it, the planned headline deficit of 0.5% of GDP is small – particularly when compared to the huge budget shortfalls that are... 18th November 2010 · 1 min read
