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WORLD NEWSFriday 6 November 2015
Financial Front Extra:
EU predicts ‘modest’ economic recovery next year
RAF CASERT said that for 2016, the EU economies. economy of Greece, which have the highest unem-
Associated Press economies will “see growth The 19-nation eurozone is received a new three-year ployment rates, with 25.7
BRUSSELS (AP) — The Euro- rising and unemployment expected to see its econo- bailout program, is forecast percent this year easing
pean Union on Thursday and fiscal deficits falling.” my grow by 1.6 percent this to shrink by 1.4 percent this only slightly to 24.4 percent
predicted the region’s The recovery is being sup- year, 1.8 percent next year year and 1.3 percent in by 2017.
economy will grow at “a ported by several tempo- and 1.9 percent in 2017. In 2016, before growing 2.7 Overall in the EU, “unem-
modest pace” next year rary factors, including low its spring forecast, percent the following year. ployment will continue to
thanks to cheap energy oil prices, the euro’s drop in those estimations still stood In contrast, Ireland, which fall while remaining too
and central bank stimulus, currency markets — which at 1.5 percent for this year also needed a bailout dur- high,” Moscovici said. Eu-
but remains hampered by helps exporters — and and 1.9 percent for next ing the financial crisis, is ex- rozone unemployment is
low investment and high monetary stimulus from the year. pected to see growth of 6 forecast to ease from 11
debt. European Central Bank. The 28-nation bloc, which percent this year, the high- percent this year to 10.3
In an official forecast, Euro- Moscovici noted the global includes non-euro nations est rate in the EU. Its econo- percent in 2017. For the
pean Commissioner Pierre economic outlook remains like Britain, is expected to my is expected to grow 4.5 EU, joblessness is predicted
Moscovici warned of un- uncertain, meaning EU na- see growth of 1.9 percent, percent and 3.5 percent in to fall from 9.5 percent this
even improvements across tions should not to let up in 2.0 percent and 2.1 percent the two coming years. year to 8.9 percent in 2017.
the 28 member states but their efforts to reform their over the same periods. The Greece is predicted to q
BOE: UK interest rates expected to stay low for longer
DANICA KIRKA Governor of the Bank of England Mark Carney arrives for an Inflation Report press conference, at to target,” he told reporters
Associated Press the Bank of England, in London, Thursday Nov. 5, 2015. The Bank of England refrained Thursday at a news conference.
LONDON (AP) — The pros- from raising its interest rate from a record low of 0.5 percent as weak inflation make the timing of He said it was a “reason-
pect of an interest rate in- a first increase ever more uncertain _ signaling it could even stretch to 2017. able expectation” that
crease in the U.K. has got- rates may rise at some
ten pushed back further, (Jonathan Brady/Pool Photo via AP) stage within the next year.
possibly even to 2017, to Thursday’s interest rate de-
the likely relief of home- with the pound weakening. would be not be abrupt. in the face of global weak- cision, which came along
owners and grief of savers. Carney underscored that “We are in a situation ness, we still see the need with minutes and a quar-
Faced with weak inflation when the bank began rais- where we have resilient do- for gradual interest rate terly forecast on inflation,
and growing uncertainties ing rates, they increases mestic demand and, even rises to bring inflation back had been closely watched
in the global economy, the because Carney had said
Bank of England’s policy the end of the year will
group voted 8-1 on Thurs- bring more clarity as to
day to keep interest rate at when rates will rise.
a record low of 0.5 percent “Recent falls in oil and oth-
and signaled it could take er commodity prices mean
longer than expected to that inflation is likely to re-
start raising rates. main lower than previously
The policymakers suggest- expected until late 2017,”
ed in a quarterly report that the bank said in its quar-
even though Britain has terly report. The bank’s
one of the fastest-growing Monetary Policy Commit-
developed economies, tee members believe that
inflation might stay lower it was more likely than not
for longer than expected that inflation would remain
because of the decline in below 1 percent into the
global growth and a fur- second half of 2016. The
ther drop in oil prices. Mar- bank’s target is for inflation
kets reacted with surprise, of around 2 percent. q
German factory orders drop for third straight month
BERLIN (AP) — German fac- New orders from the coun- Rees predicted a strong made in “a more than government’s tax take next
tory orders dropped sharp- tries using the euro curren- technical rebound in Octo- normally uncertain envi- year will come in at 686.2
ly in September, falling for cy were down 6.7 percent, ber of 2 to 3 percent. ronment” given questions billion euros ($749.3 billion),
the third straight month in while new orders from oth- The German government about how many more 5.2 billion euros less than
a sign of weakness for Eu- er countries increased 0.7 last month trimmed its eco- refugees will arrive and was predicted six months
rope’s largest economy. percent. nomic growth forecast for over the volatility of the ago but up from 671.7 bil-
The Federal Statistical Of- The “strong decline in the this year to 1.7 percent from global economy. The Eu- lion euros this year.
fice said Thursday that headline figure is a nega- 1.8 percent, citing weak- ropean Commission said in However, forecasts for the
orders fell 1.7 percent in tive surprise,” UniCredit ness in China and other a report released Thursday following years were re-
seasonally adjusted terms economist Andreas Rees major emerging econo- in Brussels that the influx of vised upward, and Schaeu-
compared with the previ- said, but it is “no reason to mies. It left its 2016 forecast migrants could help boost ble said next year’s dip
ous month, following drops panic.” He said that taking unchanged at 1.8 percent. short term spending and results from legal changes
of 1.8 percent in August into account some one-off Finance Minister Wolfgang expand Germany’s labor that have been enacted to
and a 2.2 percent drop in effects, “it is a bump in the Schaeuble said Thursday market. Schaeuble pre- increase tax breaks for low-
July. road, but nothing more.” that those estimates were sented an estimate that the er earners and families.q
