The growth of Russian economy in 2010 will be 3.9 percent of recent estimates show Bank of America. This is an upward revision from the previous forecast of 2.4 to increase the country’s GDP. The new estimate is based on higher fuel prices, which are among the main export goods to Moscow, and the government provided incentives. For the second quarter of this year the country reported the largest decrease in its gross domestic product – 10.9% annually after the first quarter the economy shrank by 9.5%. In July, the IMF forecast economic growth of Russia with 1.5 percent for next year and a decline of 6.5 percent for this.
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Despite his criticism to the U.S. dollar, China is still eager to absorb American government bonds. This actually made for other foreign and U.S. investors, who expect low inflation even if the depreciation of the dollar. Since the beginning of the year, foreign investors have swallowed 43.1 per cent of those issued by U.S. government bonds worth 1.41 trillion. dollars. For comparison, last year foreigners lost 27.1 percent of emissions, which were up 527 billion dollars. Currently 15 percent retreat dollar index against the tip of 4 March does not disturb the auction, organized by the Treasury of the United States, transmit Bloomberg. This indicates that the fund-managers are confident in the soundness of the dollar, as inflation expectations remain fairly low despite the high money supply. Since the beginning of the year the position of China in U.S. government bonds has risen by 10 percent and now exceeds 800 billion dollars. Only in July did the country has made purchases worth 24.1 billion dollars.
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On a business forum in Barcelona, European Commission President Jose Manuel Barroso predicted that the world will be the same after pass this economic crisis. Barroso said that Europe will start to come out of the crisis in 2010 He said the continent should be made much effort to overcome the serious situation. Barroso for most of Europe’s main concern is unemployment. This is the main drama of European society. Barroso added that the European Union will show flexibility in terms of limit of 3 percent of GDP, which must not pass the budget deficits of member states of the Union.
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The Russian Ministry of Transport and the largest construction company in the world Vinci signed concession contract to build the first part of the highway connecting Moscow with St. Petersburg. The contract is worth 60 billion ruble (2 billion dollars), the company will begin work on the first 43 kilometers of the route next year. The document was signed by Anatoly Chabunin, Minister of Transport and Louis-Roh Burgar, operational director of the division of Vinvi in concessions. Willingness of the government is 626 km route, which has a high-speed section from the center of Moscow to the distant suburbs, to be completed by 2015 by providing cost him to reach 600 billion ruble (20 billion dollars).
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A meeting between Russia and Ukraine through the European Union will be held on July 17, said Spokesman of the European Commission Mark Gray, quoted by Reuters. He emphasized that the initiative of the European Commission. The first meeting in this Chamber was in Brussels on June 29. After her release in the popular European Commission said that a meeting is negotiating to provide loan for Ukraine to pay its debt for Russian gas. The document stresses that progress is made. Later in the Russian press appeared information that international lenders consider the ability to provide loans amounting to half the amount necessary for Ukraine to solve problems with accumulation of gas in its gas storage. Ukraine asked the European financial structure can be assured its 4.2 billion dollars.
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The Gold deposits in Turkey amounted to about 6 500 tons. According to experts, it makes the prospect of the precious metal ore to nearly 200 billion dollars, writes century Today’s Zaman. If these stocks are harvested and processed, their added value to the economy could reach 1 trillions of dollars said the spokesman of Turkish branch of the Association Yumit Akdur. In his words, these deposits could be used to reduce the dependence that the country on imported raw materials. Turkey spends around 50 billion dollars a year for imports of fuels and raw materials. Dependence on imports is becoming greater each year, draws attention Akdur. In his country must use its natural resources to limit this trend of dependence from abroad.
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The wholesales in Japan fell at a faster pace in July compared to the previous month. According to the Central Bank of Japan fears for the return of deflation increased further summarizes BBC. The value of goods sold between companies, fell by 6.6 percent on an annual basis. These are the fastest pace of decline since statistics are kept from 1960. Deflation is due to the fact that consumer prices fell by 1.1 percent in May compared with the same period year earlier. During the “lost decade” from 1990’s, Japan was in the trap of deflationary spiral when prices of goods fell down a long time. Deflation is damaging to any economy, because consumers tend to delay shopping until prices fall further. This, in turn, causes a process to further speed the fall of prices of certain goods and services. Without consumer spending to stimulate growth, economic output falls. Despite the decline in wholesale prices of oil and raw materials and at lower prices for final product demand at the local level is still reduced.
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