Econ 102 Jan 26

Econ 102 Jan 26 - Jan 26 Weekly Briefing India GDP Growth...

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Jan 26. Weekly Briefing: India: GDP Growth slowing. 7% GDP growth expected in 2012 Bombay Exchange Down 18% in 2011 After repeated increases in Indian interests rates, inflation remains high, about 9%. Parto f the reason for high inflation is the lack of infrastructure necessary for growth, like roads and electricity. Canada Rate of Inflation Dec 2011 [Consumer Price Index] Fell to 2.3% from 2.9% in November This means that averages prices in Dec 2011 were 2.3% higher than in Dec 2010. This compares to average prices in Nov 2011 that were 2.9% higher than in Nov 2010 Considered low by the standards of the industrial world. But economic policy is driven by the CORE rate of inflation. The core rate removes the effect of changes in food and energy prices, among other items. Core rate fell to 1.9% from 2.1% in Nov. As a result, there is no pressure to increase interest rates. U.S. Central Bank [Federal Reserve] The Fed released its economic outlook on Wednesday. It expects abnormally slow growth in GDP and employment for the next several years. As a result, it will keep interest rates very low at least until the end of 2014. As a result, U.S. dollar fell against many currencies. Canadian dollar rose to parity 1C$=1US$ Why does the U.S. economy seem to be so weak? (after recession of 2000, USA still lost 1.2mill jobs. No growth. Private employment area struggling because jobs going ot cheaper companies, outsourcing and machines) Topic 1: Description of economy past and present Topic 2: how we measure economy Topic 3: Feb 2
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Canada GDP estimate for November 2011 down 0.1% from previous month [growth in October was 0%] Slows the weak state of the economy Energy, construction, wholesale trade, finance, and insurance industries had lower output. Manufacturing, retail trade, professional/scientific/technical industries rose. But note that output in November 2011 was 2.0% higher than Nov. 10. European Union Labour Markets December unemployment Rate was 10.4% Highest since Nov 1999 when the Euro was implemented. Unemloyment rate, selected countries Greece: 19.2% Spain: 22.9% Austria: 4.1% Germany: 5.5% Employment Change from Previous Year: Females Males 2009 -0.7% -2.7% 2010 -0.2% -0.8% Stock Market Comparison C$ invested in Canadian Stock Market [TSX Index] Sept 9, 2000: C$ 10,000 = US$ 6,800 Feb 2,2012: C$ 11,024 = US$ 11,024 Gain in C$: 10.24% Gain in US$: 62.1%
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Econ 102 Jan 26 - Jan 26 Weekly Briefing India GDP Growth...

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