Credit World News

Middle East is rather known for its battles, civil uprisings, and immense amount of oil which supports the region. An interesting study on the Middle East countries done by ICAEW  with focus on the UAE, Bahrain , Saudi Arabia , Oman , Qatar , Kuwait , Egypt , Iran , Iraq and Lebanon revealed a lot of information on growth and employment of this region. The Middle East economy is expected to be stronger by 3.9% in this year than the world economy. The whole GCC‘s GDP growth is assessed to be 4.8%. The growth rate of GCC was higher by 6% in 2012 than the current rate in 2013. This is much above the growth rate of western countries. The tremendous growth in population is outpacing the European countries. The maximum number of youth under 30 is in the Middle East region and from 1990-2010 the population grew by 52 % when the population growth rate of the world was only 30%! One amazing fact is that the population growth rate in the EU countries in the same period was onl...

The Japanese Crisis in 1993 paved the way for many banks to be in the Zombie Bank status. The term Zombie Bank was coined by Mr. Edward Keyne and it applies to those banks with net worth zero yet operating on government bailouts. The 10 years of Japanese Crisis is also described as the Lost Decades which witnessed Japanese Asset Price Bubble collapsing within the Japanese economy. According to the FDIC Problem Bank List there are around 844 banks which are almost like Zombies, in the US itself. The list has been kept confidential. The threat of Zombie banks is becoming universal and countries are finding ways to bring these banks back to action. Most prominently EU banks are debating about recapitalizing their Zombie Banks. According to the recent speech of Mr Klass Knot, Dutch Central Bank President and The European Central Bank Governing Council member, revival of the banks will vitalize the depressed economy and is inevitable in the current scenario. The main strategies ...

The recession in 1990 lasted from July 1990 to March 1991. The OECD countries suffered recession in 1990. Among the 18 OECD members 17 had to go through the bitterness of recession. Italy, Greece, France, Ireland, Japan, Korea, Portugal were among those countries. The recession lasted for two years, but it paved way for most of the economical issues which all those countries face today. This chart represents debt status in those countries impacted by the recession from the 1990 recession till 2012.      Click on chart for bigger image

As the economic slowdown advances 4 million youths joined the bandwagon of unemployed in the global front, which originally was 193 million at the beginning of 2012 keeping the developed economies as the epicenter of the crisis. The 25% of the unemployed youths is from developing countries whereas; East Asian, South Asian and Sub Saharan African youth constitute 75% of the unemployed regime.   The recent ILO report on Global Employment Trends 2013, 39 million people have abandoned the labor market because of the job prospect unavailability, since 2007 which resulted in a 67 million job gaps till date. Experts look for a moderate output growth in 2013-2014 and this growth will not show in the labor market index, which will witness a rise of 5.1 million in 2013 and an extra 3 million in 2014, which will make the 202 million unemployed in 2013 to 205 million in 2014. Major EU countries are focusing on civil service job cuts in a huge amount. Bulgaria (5.5% of betwe...

A 23% increase in the sales tax and wage cut up to 15%! This is in Ireland!   When the government sees no other method to hold the country stable then they adopt austerity measures, or it can be said that austerity measure adoption shows that the government has failed with its administration and strategies. Ireland has gone through 5 austerity budgets since 2008 to slash the spending and to increase the taxes and the experts say that this will go till 2015. Ireland has cut down the number of civil servant vacancies, high taxes are imposed on income, automobiles, fuel and homes, and   the unemployment rate is 15%. Austerity measures were introduced in Greece in 2010 as a precondition for IMF-EU 110bn euro bailout. A second bailout package of 130 bn euros was given in 2012. 2010-2012 Greek riots against austerity measures resulted in the death of 5 people. The spending cuts were equal to 1.5% of the output, but the austerity measures have not resulted in the goal whic...

The US student loan crisis is truly  alarming and is a much debated issue in the country. One in 3 borrowers owe more than an amount of $25,000. This year will witness the total student loan exceeding $ 100 billion Banks are tightening the criteria to get a student loan as the repayment rate goes down. In the US, U.S. Bancorp USB is pulling back from the student loan services while JP Morgan Chase has reduced the lending rates. Around  20 million Americans attend college every year and 60% among that borrow to cover the costs and 37 million students  among them are with outstanding student loans.  According to a report in 2012, the average amount of student debt outstanding was $26,600. Over the past 4 years student debt has risen by $327 billion, at an increasing rate of 51.2%. Other forms of debt including housing loan, auto loans, and credit card loans form only $ 1.7 billion. Studies conducted by The Federal Bank of New York shows $1 trillion of ou...

The US , Japan and EU together form 57% of the global economy while, they have only 14% of the world’s population, where China , India and Indonesia has 40% of the world’s population with 12% of global GDP. The youthful population and its literacy rate are the main factors which influence the economy. The power shown by Asia in overcoming recession has actually shocked the world, when the rest of the world still faces economic crisis. The Asian industry will grow in the energy, agribusiness, food retailing, environment business, automobiles, and housing sectors. The Asian food demand will double, and it may reach US$3 trillion by 2020. The food consumption by 2020 will grow nearly 80% as much as the US , up from 45% at present. This increased rate of consumption will lead to increased business opportunities in food retailing specifically groceries. Compared to 2008, the present GDP has grown by 18% in Singapore and Malaysia , 14% in Philippines , 10% in Hong Kong , T...