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Global Budgetary Issues

Portugal Remains Silent

Things aren’t looking so great for Portugal right now, either politically or economically. The country’s recent crisis has led to an attempt on the part of its government to “rein in the budget deficit.” In turn, this has resulted in markets once again shifting their focus to Europe’s sovereign debt crises. Given all this it is quite interesting that no one has approached the IMF for help, according the organization’s department head of monetary and capital markets. This amidst worries that the country may be asking for an international bailout as was the case with Greece and Ireland just last year. But so far nothing has happened.

Japan: Stronger Than it Looks

Despite the total devastation Japan went through, according to the IMF, it seems that the country is way stronger than it looks. Given its tough economy, it is believed the country will be able to rebuild its damage and that this will only result in a “short-term drop” in its economy. Indeed according to the IMF’s Asia Pacific chief Ken Kang, “despite the extensive damage we are of the view that the economic costs are manageable.” As well, the country had a 3.9 percent growth for 2010 in spite of it contracting by 1.3 percent in the last quarter. Earthquake rebuilding costs are estimated at $309bn according to the Japanese government.

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