Category Archives: Economy

Iberian economies could face financial crisis

Spain and Portugal could follow Ireland’s meltdown

Portuguese and Spanish economies have been faced with serious fears that their respective economies could face meltdown. With the recent news that Ireland has been forced to be helped with a EU bailout, the Iberian nations could follow suit.The Spanish government have pledged that their economy will reduce its deficit, but the market is not so confident. Also the Portuguese have announced that they aim to slash their deficit this year by 2 points from 9.3%.

I hope that the Iberian nations do not need a bail-out from the EU, but my gut feeling is that they will follow Ireland’s path and need it. This could be very bad news for not just the EU, but for the global recovery. Many fear that the economically damaged nations will re-enter recession, resulting in double-dip recessions. If one or many re-enter, or are allowed to re-enter, recession again it will result in a setback for the global recovery. As much I hope that the Iberian nations are financially sound, I fear that another bail-out could happen soon.

Below is a link to the BBC News article:

Pressure gets too much for Portugal and Spain

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Double-dip recession is feared

Financial concerns fear finance directors

Today, finance directors have feared that a double-dip recession could occur. In a survey by Deloitte, the probability of a double-dip recession rose from 33% to 38%. With volatility in the financial markets, the threat of returning to recession has sparked fears with many finance directors. 

I feel that a double-dip recession will occur because of the instability in the financial sector and the lack of predictability in the economic future. The UK only escaped the recession in January 2010, but since then GDP growth figures have been very small and may show that they could return to negative growth in the future. I feel if a double-dip recession occurs, this could lead another financial meltdown and could take the UK many more years to find its feet in the financial sector. I hope that a double-dip recession does not occur, but with many experts predicting a double-dip, it raises fears as to whether to the UK can cope with another decline. 

Below is the link to the Financial Times article

Finance directors fear double-dip recession

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G20 summit – the shakeup in and out of Toronto

Deficit cuts, earthquake and city troubles

I am currently holidaying in Toronto, and I experienced two major events all the space of a few days. On 24th June 2010, I experienced an earthquake tremor whilst visiting family in Waterloo, ON. This felt strange as this was not the major talking point of the weekend. Many may have evacuated buildings in Canada, but the main topic on the agenda was the G20 summit.

Leaders from the 20 biggest countries in the world descended on the largest city in Canada to discuss many things, but most importantly the economic situation and how to resolve it.  The deficit cuts are the main areas of concern that were discussed. I hope this summit will be a spring board for economic recovery in the near future.

Whilst the summit was taking place in the heart of Toronto, many troubles were being witnessed on the streets. Whilst watching CBC News (a Canadian news channel) I witnessed a police car being broken into and set on fire. This along with many store fronts being vandalised were the actions of many protestors. The last time I saw anything of the sort was at the last G20 summit in London 15 months ago. I feel these kind of actions need to be expressed, but should be expressed in a civilised way that ensures real action and not more trouble.

Below is the link to a Guardian news article: 

G20 summit has major implications for the UK’s economic recovery

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