Global
Economic Overview: May 2015:..!
From MCX report
According to a recent McKinsey report, the
total amount of debt on our planet has grown from 142 trillion dollars at the
end of 2007 to 199 trillion dollars today. Thus, there is “more than $28,000 of
debt for every man, woman and child.”
• US economy
– Recent data showed that the U.S. economy contracted 0.7% in Q1
2015, as against the initial growth estimate of 0.2%.
– The Chicago PMI shrank to 46.2 in May from 52.3 in the prior
month. Another reading of consumer sentiments showed that the US consumer
optimism inMay was higher than expected.
– Federal Reserve chairwoman said that the central bank was on
track to raise interest rates this year but would proceed cautiously as the job
market hadn't fully healed, inflation was low and growth had again
disappointed.
– Early in the month, the headline inflation was seen falling
below the central bank's 2% target—a target the Fed has been looking for before
it is comfortable lifting rates.
• European economy
– Risks regarding a potential Greek exit from the euro zone
remained in the backdrop after the country's interior minister, Nikos Voutsis,
threatened to default on loan repayments due to the InternationalMonetary Fund.
– The Bank of England (BOE) on May 11 kept interest rates
unchanged. The BOE held its benchmark interest rate at a record low of 0.5%,
where it has stayed since March 2009.
• Asian economy
– Japan's industrial production rose more-than-expected, that is,
1% in May from (-) 0.8% in the preceding month.
– China cut interest rates for the third time in six months to
stimulate growth. The People's Bank of China cut its benchmark lending rate by 25 basis points to
5.1% and its benchmark deposit rate by the same amount to 2.25%.
– Earlier, data released showed that the HSBC China Services
Purchasing Managers' Index rose to a four-month high of 52.9 in April from 52.3 in March.
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