Investing and Global Finance News

Tag Archives: GDP

GDP and Public Wealth

According to a recent article put out in the IMF Blog

“advanced economies have larger balance sheets compared to emerging markets and low-income developing countries. This reflects the size of their public sectors, which generally provide more infrastructure and services. But advanced economies also have larger liabilities and, on average, lower net worth.”

So what does that mean?  Almost 40 countries has a total of public sector assets (infrastructure, financial assets and natural resource reserves) worth $103 trillion. That comprises 216% of GDP.

It has been found “that having large assets does not necessarily reduce how vulnerable a country is to large debts; this will depend on the nature of the assets.” How can this situation change?  Possibly with better management. According to the Blog:

“Better management of government assets could earn 3 percent of GDP in extra revenues each year—that is more than the interest payments advanced countries pay to cover their debt.”

Some countries are already doing this.  Examples include: Australia, the UK and New Zealand which are all engaging in a review of their balance sheet. Jersey is making waves toward greater transparency such that by 2023 the law will really be forcing the issue.  A joint Guernsey, Jersey and the Isle of Man statement included the intention to:

“bring public company registry legislation to their respective parliaments within 12 months of the EU publishing a review in 2022 outlining how their members states have created their own public registers.”

GDP can be a good indicator of wealth.  When it is codified correctly it has the power to give us information about consumption levels and when GDP depletes it can be a useful red flag for new policies.

Inventories, Sales Up in December

The Department of Commerce reported that US business inventories were up better than expected in December, while sales rose by their biggest percentage since 2011. The announcement said that inventories went up by 0.4 percent, while November’s figure had to be re-stated as 0.8 percent in place of the previously announced 0.7 percent. Business inventories… Continue Reading

Economy Thawing as GDP Expands

Now that the long, cold winter is fading into the past, spring is bringing warmth as well as growth to the US economy. According to the government, the US economy saw 4.6 percent annualized growth during the 2nd quarter of 2014, compared to a 2.1 percent slowdown in the first quarter. Analysts expressed optimism that… Continue Reading

Economics: Europe Vis-à-vis America

Europe Awaiting Crisis It seems that while America and much of the western world is about ready to really recover from their economic crisis, the situation is quite different for Europe which is still awaiting its own crisis. This might not spell such great news for the region. Indeed, CEO of Principal Global Investors Jim… Continue Reading

Royal Wedding Economics: 1981 V 2011

UK’s 1981 Economy Things were pretty bad economically 30 years ago just before Charles – probably somewhat regrettably – said “I Do” to Diana. But according to a recent study comparing the economics of the time between the two royal weddings spanning the last three decades, things for Britain’s economy were “beginning to turn a… Continue Reading

Mysteries of Malta

      Surprising Maltese Status   It might be somewhat of a shock to those not-in-the-know that Malta – a tiny portion of land found in the Mediterranean Sea measuring approximately 300 sq km – is pretty big when it comes to economic and welfare aspirations and successes.  Yet apart from its somewhat modest… Continue Reading

Asia and the Global Economy Today

<h3>Global Financial Crisis on the Mend</h3> Finally there is some good news vis-à-vis the much talked about – nay, incessantly whined about – global financial crisis.  The peak was around 3 years ago but since then there have been signs of improvement, albeit at a snail’s pace and still necessitating significant assistance according to Sultan… Continue Reading