Bringing tears to Indians’ eyes

Jan 21st 2011, 14:00 by S.D. | LONDON

Source: The Economist

HEADLINES about the Indian economy—particularly in the international press—have in recent times been dominated by excitement about near double-digit growth and speculation about when (and whether) India is on track to start growing faster than China. But domestically, (and now elsewhere, too) the big economic—and increasingly political—issue is a familiar one: runaway inflation.

The sunset of the decade… Captured 31 Dec 2010

Sent on my BlackBerry® from Vodafone

Grounded PIIGS

Jan 4th 2011, 12:48 by The Economist

Countries with the fastest and slowest growth forecasts

THE cost of insuring Ireland’s debt against default is now higher than insuring Argentina’s. Five-year Argentinean credit-default swaps (CDS) have been tightening, whilst Ireland’s have widened to 609 basis points, the third highest in the world, after Greece and Venezuela. GDP growth forecasts for 2011 are not much more optimistic for these European countries. According to the Economist Intelligence Unit, a sister company of The Economist, Ireland’s and Greece’s GDP will decline by 0.9% and 3.6% respectively. The PIIGS (Portugal, Ireland, Italy, Greece and Spain), find themselves among the slowest growers this year. In contrast, after avoiding recession in 2008 and 2009, and enjoying the global recovery in 2010, Qatar is set to grow by 15.8% this year. Strong growth is largely due to its liquefied natural gas (LNG) projects and an expansionary fiscal policy focused on infrastructure. China and India are also projected another year of strong growth, 8.9% and 8.6%, respectively.

A year in nine pictures

Dec 29th 2010, 14:40 by The Economist

THE global property bust that pulled the world into recession in 2008 began to lift in 2010. House prices turned up in Britain and stabilized in America (chart 1) but slid further in Spain. The process of deleveraging kept rich-world inflation subdued (chart 2).

2011: Turning point for the economy?

By TOM PETRUNO | LA Times
Sunday, December 26, 2010

The U.S. economy keeps climbing out of the deep hole left by the financial crash and the Great Recession that followed.

But the recovery’s benefits have been dispensed unevenly, to say the least — which is why many Americans don’t believe things have improved, and lack faith that 2011 will bring better times.

Those doubts, however, could have a silver lining: The bar is low for what might constitute good news that could feed on itself and give the economy significant momentum.

As 2010 ends, though, the sharp disparities of this recovery are what stand out.

Profits boomed at major corporations this year while countless small businesses struggled to stay afloat.

The financial health of most banks continues to improve, but at the expense of diligent savers who are earning virtually nothing on their money as short-term interest rates are held near zero.

Strong sales at luxury retailers like Tiffany & Co. and Coach Inc. have driven their stocks to record highs, even as the number of Americans on food stamps has reached a record 43 million.

Most distressing of all is the employment picture, of course. Despite five straight quarters of economic growth, the U.S. jobless rate, currently 9.8%, is down just slightly from its peak of 10.1% in October 2009.

The greatest challenge facing the economy in 2011 is clear: The job market must turn up, and meaningfully. If that doesn’t happen, Americans’ pessimism could become self-fulfilling.

World economy: Key issues in 2011

FROM THE ECONOMIST INTELLIGENCE UNIT

A stronger dollar, a weaker Chinese economy, more wobbles in the euro zone and the death of a dictator are among the potential challenges for politicians, policymakers and investors in 2011. In this preview of key issues for the year ahead, the Economist Intelligence Unit identifies a number of events or policy developments that could have substantial implications not just for a single country but for whole regions or the world. With many countries still emerging, unsteadily at times, from the Great Recession, economic issues dominate our list (which is not intended to be exhaustive). But politics in Iran, North Korea and–less alarmingly–the US could also spring some surprises.