1World trade data shows slowdown (Floyd Norris in The New York Times) World
trade slowed last year, as major countries like Japan and Germany shipped
exports that were worth less than those in 2011. The US bucked the trend to
some extent, but the 4.5% increase in exports was far smaller than the 15.8%
jump in 2011.
Of the 12 large industrialized countries only China, with an 8% gain, posted faster growth in exports than the US. Canada reported a small gain, but the others showed declines. In their local currencies, South Korea and India had gains, but they were erased by the decline of those currencies against the dollar. Import totals can provide an indication of economic woes, as declining incomes cause consumers to buy less, including fewer items from abroad. Imports fell in Germany, France and particularly Italy. This week, the European Union reported that the euro zone economy declined in the fourth quarter — the third consecutive fall. Germany’s economy, which had been growing slowly, also shrank.
In the US, imports of goods rose just 3% in 2012. It was the second consecutive year, and the sixth year in the last seven, that exports grew more — or, in 2009, shrank less — than imports. Before that, imports rose faster than exports for eight consecutive years, from 1998 through 2005.
The US runs a trade surplus in services, but the trade deficit in goods widened slightly in 2012 to $727.9 billion. That figure is still well below the deficits from 2004 through 2008, before the credit crisis and recession caused international trade to decline rapidly in 2009. The strong gains many countries experienced in 2010 and 2011 reflected a return to more normal levels.
Japan's growth has been hurt by a drop in exports to key markets as well as
subdued domestic consumption. "The biggest reason for the decline in gross
domestic product (GDP) is external demand was weak and domestic demand did not
recover as quickly as we thought," said Shuji Tonouchi of Mitsubishi UFJ
Morgan Stanley Securities in Tokyo.
Japan has been fighting deflation, or falling prices, for best part of the past decade. That has hurt domestic demand as consumers tend to put off purchases in the hope of getting a cheaper and better deal later on. Many analysts have said that stoking inflation is key to spurring Japan's domestic consumption. The economy has contracted for three straight quarters, but the third quarter was the worst and fourth quarter data show the pace of decline is slowing”
"The economy has contracted for three straight quarters, but the third quarter was the worst and fourth quarter data show the pace of decline is slowing," said Mr Tonouchi of Mitsubishi UFJ Morgan Stanley Securities
3 Being Greek and a journalist means double trouble (Kostas Tsapogas in The New York Times) Like many Greeks caught in the maelstrom of the economic crisis, my wife and I live a day-to-day existence. Since the newspaper where I worked for 23 years (my wife for 17) went out of circulation in December of 2011, we have both been unemployed. Neither of us has received a paycheck in 18 months, as our newspaper stopped paying us five months before it closed. With unemployment for journalists at over 30%, and the official unemployment rate at 26%, our prospects for this year are, shall we say, not terribly favorable.
Our story is typical of many in Greece, though some are much worse off and some have it better. But like an overwhelming number of Greeks who are struggling just to get enough food, to keep their homes warm and to maintain a semblance of normalcy, we are fighting to keep our dignity intact and avoid the depression that is enveloping our country.
We have been lucky in some ways. Our son, like many young people, has left Greece and found work as a software engineer in Scotland, and we are watching as the country loses a generation of highly skilled university graduates. Our parents, though elderly, are healthy and manage to survive on their pension, which has been cut by almost 50% in the last two years. They have offered to share what little they have with us — something common in Greece, where traditional family ties often offset ineffective social welfare programs.
In the past 18 months, we have tried to find work in journalism. With a group of former colleagues, we tried to create a start-up digital newspaper. After months of hard — and unpaid — work, our primary investor pulled out just a few days before we were supposed to go online, unwilling to take the risk in such a fragile economy.
Of the 12 large industrialized countries only China, with an 8% gain, posted faster growth in exports than the US. Canada reported a small gain, but the others showed declines. In their local currencies, South Korea and India had gains, but they were erased by the decline of those currencies against the dollar. Import totals can provide an indication of economic woes, as declining incomes cause consumers to buy less, including fewer items from abroad. Imports fell in Germany, France and particularly Italy. This week, the European Union reported that the euro zone economy declined in the fourth quarter — the third consecutive fall. Germany’s economy, which had been growing slowly, also shrank.
In the US, imports of goods rose just 3% in 2012. It was the second consecutive year, and the sixth year in the last seven, that exports grew more — or, in 2009, shrank less — than imports. Before that, imports rose faster than exports for eight consecutive years, from 1998 through 2005.
The US runs a trade surplus in services, but the trade deficit in goods widened slightly in 2012 to $727.9 billion. That figure is still well below the deficits from 2004 through 2008, before the credit crisis and recession caused international trade to decline rapidly in 2009. The strong gains many countries experienced in 2010 and 2011 reflected a return to more normal levels.
2 Jap economy worse than forecast (BBC) Japan's economy
contracted for the third straight quarter in the three months to end of
December, underlining the challenges the new government faces in reviving
growth. The economy shrank 0.1% compared with the previous three months. Most
analysts had forecast growth of 0.1%. That is equivalent to an annualised dip
of 0.4% in gross domestic product.
Japan has been fighting deflation, or falling prices, for best part of the past decade. That has hurt domestic demand as consumers tend to put off purchases in the hope of getting a cheaper and better deal later on. Many analysts have said that stoking inflation is key to spurring Japan's domestic consumption. The economy has contracted for three straight quarters, but the third quarter was the worst and fourth quarter data show the pace of decline is slowing”
"The economy has contracted for three straight quarters, but the third quarter was the worst and fourth quarter data show the pace of decline is slowing," said Mr Tonouchi of Mitsubishi UFJ Morgan Stanley Securities
3 Being Greek and a journalist means double trouble (Kostas Tsapogas in The New York Times) Like many Greeks caught in the maelstrom of the economic crisis, my wife and I live a day-to-day existence. Since the newspaper where I worked for 23 years (my wife for 17) went out of circulation in December of 2011, we have both been unemployed. Neither of us has received a paycheck in 18 months, as our newspaper stopped paying us five months before it closed. With unemployment for journalists at over 30%, and the official unemployment rate at 26%, our prospects for this year are, shall we say, not terribly favorable.
Our story is typical of many in Greece, though some are much worse off and some have it better. But like an overwhelming number of Greeks who are struggling just to get enough food, to keep their homes warm and to maintain a semblance of normalcy, we are fighting to keep our dignity intact and avoid the depression that is enveloping our country.
We have been lucky in some ways. Our son, like many young people, has left Greece and found work as a software engineer in Scotland, and we are watching as the country loses a generation of highly skilled university graduates. Our parents, though elderly, are healthy and manage to survive on their pension, which has been cut by almost 50% in the last two years. They have offered to share what little they have with us — something common in Greece, where traditional family ties often offset ineffective social welfare programs.
In the past 18 months, we have tried to find work in journalism. With a group of former colleagues, we tried to create a start-up digital newspaper. After months of hard — and unpaid — work, our primary investor pulled out just a few days before we were supposed to go online, unwilling to take the risk in such a fragile economy.
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