Our Business News

Last week’s upward revision of the official estimate of GDP growth raises an intriguing question: Could the economy actually survive a fall off the fiscal cliff? It’s a question worth asking since this week’s news from Washington has brought more posturing than progress on budget negotiations. Failing a deal, the package of spending cuts and tax increases due to begin on January 1 is thought certain to have a dampening effect on the economy. GDP revision shows new momentum Late last week, the Bureau of Economic Analysis issued a revised estimate of economic growth in the third quarter. The new [...]

Another year of high unemployment and anemic economic growth rates has come and gone, leaving many people to say “good riddance” to 2012. But will the situation improve much in 2013? Probably not, says John Moore, associate professor in the Finance and Economics department at Walsh College in Troy, Mich. He believes damage related to the financial crisis has put the United States at risk for a period of extended economic “malaise” similar to that of the 1970s. What is your outlook for US economic growth in 2013? Overall gross domestic product growth for 2012 is likely to be … [...]

Treasury Under Secretary for International Affairs Lael Brainard is in Beijing for two days of economic talks with senior Chinese government officials, the department announced on Monday. Brainard will discuss “ways to expand opportunities for U.S. workers and businesses through a more level playing field,” the statement said. She will also discuss the global economy and China’s efforts to boost its consumer sector. Late last month, Treasury again declined to name China a currency manipulator, citing progress in the emerging nation’s currency appreciation.

PARIS Economic growth appears to be gathering traction in the United States and Britain, while China and Italy may be about to turn up, the Organisation for Economic Co-operation and Development said on Monday. Signals continue to point to weak growth in Germany, France and the euro zone as a whole, however, and likewise in Japan, Russia and Canada, the Paris-based OECD said in a statement on its monthly composite leading indicator (CLI). The OECD said its October CLI reading for the United States and Britain remained above 100, which represents the long-term average of economic performance, rising respectively to [...]

BEIJING China’s exports growth slowed sharply to a much lower than expected 2.9 percent in November, a customs report said on Monday, underscoring the global headwinds dragging on an economy showing otherwise solid signs of a pick up in domestic activity. Data at the weekend showed both industrial output and retail sales rose in November at their fastest annual pace in eight months, reinforcing the view that growth in the world’s second-biggest economy is finally picking up after a long slide. However, weak exports will drag on the revival in the Chinese economy as its major buyers struggle; Europe and [...]

Sanctions on oil exports from Iran are hurting the nation’s economyIranian crude sales have dropped 60% in the past yearIt is hoped that the sanctions will stop Iran from developing nuclear weaponsSteve Hanke at Johns Hopkins university warns that sanctions might be counterproductive Economic sanctions have effects, says an expert at Johns Hopkins University, but not all may be intended.”Sanctions historically are quite counterproductive in the sense that if you impose sanctions on your enemy, it tends to strengthen your enemy,” Steve Hanke told CNN’s John Defterios.In Iran — where oil exports provide about 70% of government revenues according to [...]

SAO PAULO A good example of why Brazil’s economy is floundering can be found in a surprising place — a seaside city in southern Scandinavia. Stavanger, Norway-based investment fund Skagen says it has lost about $ 200 million since August because of Brazilian President Dilma Rousseff’s latest intervention in her country’s economy — a plan to force companies to slash electricity rates. Rousseff says the plan is needed to cut costs for Brazil’s struggling factories and other consumers. The collateral damage has been huge, as the prospect of dramatically lower profits has wiped more than $ 15 billion off the [...]

The economy grew faster than initially thought in the third quarter as restocking by businesses provided a big boost, but consumer and business spending were revised lower in a sobering reminder of the recovery’s underlying weakness. Gross domestic product expanded at a 2.7 percent annual rate, the Commerce Department said on Thursday, with export growth also helping to offset the weakest consumer spending and first drop in business investment in more than a year. It was the fastest growth since late 2011 and much quicker than the 2 percent rate the government estimated last month. But it was hardly a [...]

The U.S. economy grew faster than initially thought in the third quarter as restocking by businesses provided a big boost, but consumer and business spending were revised lower in a sobering reminder of the recovery’s underlying weakness. Gross domestic product expanded at a 2.7 percent annual rate, the Commerce Department said on Thursday, as export growth also helped to offset the weakest consumer spending and first drop in business investment in more than a year. While the growth pace was much quicker than the 2 percent rate the government estimated last month and the best since the fourth quarter of [...]

The IRS recently released income tax statistics for the 2010 tax year and these statistics offer good insight on the shape of the economy. And this time we have good news! Mind you the news is two years old, but it is indicative of an upward trend. In 2009, 140.5 million individual income tax returns were filed. A year later, 142.9 million tax returns were filed for an increase of 1.7%. Adjusted gross income (AGI) totaled $ 8.1 trillion in 2010, a 6.1% increase from 2009 and the first increase after two years of lower reported AGI. If we go [...]