Guatemala economy – IPMS Guatemala http://ipmsguatemala.org/ Thu, 25 Nov 2021 22:57:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ipmsguatemala.org/wp-content/uploads/2021/10/icon-61-120x120.png Guatemala economy – IPMS Guatemala http://ipmsguatemala.org/ 32 32 The Effects of Cryptocurrency on the Economy and Why You Should Invest Now https://ipmsguatemala.org/the-effects-of-cryptocurrency-on-the-economy-and-why-you-should-invest-now/ Thu, 11 Nov 2021 20:29:24 +0000 https://ipmsguatemala.org/the-effects-of-cryptocurrency-on-the-economy-and-why-you-should-invest-now/ Lea Green How far are we ready to go digital? We all know at this point that our future is going digital. There is no escaping it, what we need to know now is what happens next, and how does that affect me? Crypto; Short for cryptocurrency, is a digital currency that is exchanged for […]]]>

Lea Green

How far are we ready to go digital? We all know at this point that our future is going digital. There is no escaping it, what we need to know now is what happens next, and how does that affect me?

Crypto; Short for cryptocurrency, is a digital currency that is exchanged for goods and services; maintained by a decentralized system.

This means bad news for the government, because it means that we (as citizens) can undermine the authority of government; in the next few years, it could uproot the current financial system.

According to The capital, “Cryptocurrencies have the ability to accelerate global social and economic development by facilitating access when it comes to purchasing resources and benefiting from financial services, especially in developing countries. This implies that less developed countries are more likely to engage in financial markets and improve their own economic and social status.

Medium adds, saying, “This will save people billions of dollars and accelerate the socio-economic development of countries like Guatemala which receive more than 10% of their GDP each year through remittances.” Most of this technology has already been used in other places. In the Bahamas, they have their own currency called “Sand Dollar”. Since its launch in October 2020 it was a great success. Small businesses incur less fees on bank fees, and that’s covid safe.

For business owners, now is the perfect time to start using crypto. A study by BusinessWire found, “There are four main conclusions based on interviews with four traders who accept bitcoin and other cryptos. First, up to 40% of customers who pay with crypto are new to the merchant. Second, the amount of purchases is double that of credit card purchases. Third, crypto is cheaper than credit cards, and finally, there is no chargeback associated with fraud.

These days, the big chains are using bitcoin, a type of crypto, to allow people to buy things in the United States, such as a homedepot. Starbucks, Wholefood, Expedia.com, and Twitch. These are all businesses that people use for daily events and needs. While being able to maintain confidentiality and security.

For consumers, investing in cryptocurrency is the best thing you can do for yourself and your future self. It allows for long-term assets and wealth.

The money you make trading on the stock market earns you interest, so you basically get paid as your stocks go up. With discipline, patience, intelligence, and a desire for financial security, anything is possible.

Roger Ma, certified financial planner at lifelaidout and author of “Work Your Money, Not Your Life says,“ What we’ve seen over the long term, for long holding periods, is that stock market returns have generally outperformed other asset classes.

CNBC experts say “Financial experts generally recommend Only put in cryptocurrencies an amount of money that you can safely lose – in other words, that shouldn’t be all your nest egg. As a general rule, having 5% of your portfolio in a high risk asset such as bitcoin or other coins is a safe rule of thumb.

Others, like The Times UK suggests ask yourself a series of questions before you even invest. “Do I understand what I am investing in? Am I satisfied with the level of risk? How much more expensive now compared to a few months ago? Is there any evidence to suggest that prices could go up even more? If I buy it now with a view to selling it even more expensive later, who do I think will buy it at this higher price and why? If an asset is so big, why wasn’t I interested when it was so much cheaper? If billionaires are investing in crypto, the question you need to ask yourself is why am I not?

Bitcoin changing overtime

Using crypto right now could be a big risk, as we don’t know much or where it could go; we know. This new age technology is on the rise not only for independent users, but for entire countries. The cryptocurrency is going to end up on a good upswing for the economy and you don’t want to be the last. Invest now and thank me later.


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Signs of life in the Tunisian economy as Italian trading partners resume their activities https://ipmsguatemala.org/signs-of-life-in-the-tunisian-economy-as-italian-trading-partners-resume-their-activities/ https://ipmsguatemala.org/signs-of-life-in-the-tunisian-economy-as-italian-trading-partners-resume-their-activities/#respond Tue, 09 Nov 2021 14:16:19 +0000 https://ipmsguatemala.org/signs-of-life-in-the-tunisian-economy-as-italian-trading-partners-resume-their-activities/ TUNIS – At the first post-revolution Italo-Tunisian business forum, which took place last week in Tunis, jasmine flowers were everywhere: scattered on desks and window sills, and even decorating buttonholes on men. The flower – symbol of the Arab Spring – has replaced the photos of former Tunisian President Zine el Abidine Ben Ali, in […]]]>

TUNIS – At the first post-revolution Italo-Tunisian business forum, which took place last week in Tunis, jasmine flowers were everywhere: scattered on desks and window sills, and even decorating buttonholes on men. The flower – symbol of the Arab Spring – has replaced the photos of former Tunisian President Zine el Abidine Ben Ali, in the streets and in all the offices of the Tunisian transitional government.

During this forum, the new Tunisian Minister of Trade and Tourism, Mehdi Houas (who returned from Paris only six months ago) met many Italian businessmen, as well as the Italian Minister of Industry Paolo Romani. “I am here to reassure the Italian business community and also to be reassured by the Tunisian authorities on the next steps towards the transition of a country which is a dear friend of Italy,” Romani told him.

Italy is Tunisia’s second largest trading partner (after France), with a global trade volume of 5.8 billion euros. About 740 Italian companies, which together employ 55,000 people, do business in Tunisia. Italian clothing retailer Benetton, for example, employs 15,000 Tunisians.

“The situation is improving but remains fragile, given that the transitional government has not been legitimized by an election,” sources told the Italian embassy in Tunis. The election to the Constitutional Assembly has been postponed from July 24 to October 24, which some see as a setback. In addition, the war in neighboring Libya – which has pushed nearly 2,000 refugees across the border almost every day – also adds tension. In Tunis, a feeling of insecurity forces people to stay at home after dark. Thousands of former detainees have been released and burglaries have increased. Many people have iron bars installed on their windows. Armored vehicles are parked in front of the national television building.

The collapse of tourism

Many Tunisians are worried about the growing attractiveness of the Islamic party – which according to some polls could win around 20% of the vote – and the high unemployment rate among young people. The collapse of the tourism sector by up to 50% has had particularly devastating results, employing around 8% of the total workforce. This summer, the tourist complexes of the Italian tour operator Valtour will remain closed in both Tabarca and Bizerte.

While Italian tourists have decided to avoid Tunisia this year, Italian companies have stayed put. Colacem, a cement maker, and Gervasoni, a steel maker, continued to operate as usual; another Italian company, Clerprem, still produces armrests for cars in Bizerte, in northern Tunisia.

Construction is also resuming, especially in Tunis, where many buildings are still awaiting completion. Todini, a construction company, will build two plots of the new highway between the cities of Gabès and Sfax, for a total value of 100 million euros. Ferretti Construction has recently resumed its usual activities, and the Italian Gwh, a biomass producer, and the French Thales, which produces radio navigation systems, have recently opened new offices in Tunisia. However, some companies have complained about a number of customs issues at the border; uncertainty about the next election and the government also makes some payments uncertain.

But no one doubts that the economy can help Tunisia’s transition to democracy. At the Italian-Tunisian forum, Tunisian ministers promised a series of investment incentives for Italian businessmen wishing to open new businesses (such as exemption from all taxes or VAT for companies only exporters during the first ten years of investment). Tunisia also invites small and medium-sized enterprises to invest in mechanics, electronics and agribusiness in a country which is now the central commercial platform to Egypt, Morocco and Jordan.

“It’s positive,” said Michele Tronconi, president of the Italian Textile and Fashion Federation. “Now they must liberalize distribution, real estate, transport and the media, which until now were under the monopoly of Ben Ali’s family.”

Photo –francesco sgroi


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IMF says Panama’s economy will grow 12.5% ​​this year https://ipmsguatemala.org/imf-says-panamas-economy-will-grow-12-5-%e2%80%8b%e2%80%8bthis-year/ Mon, 08 Nov 2021 06:44:48 +0000 https://ipmsguatemala.org/imf-says-panamas-economy-will-grow-12-5-%e2%80%8b%e2%80%8bthis-year/ RIO DE JANEIRO, BRAZIL – The International Monetary Fund (IMF) has called Panama’s “economic outlook” “optimistic” and forecasts 12% growth for 2021, after a 17.9% drop due to the pandemic l last year, the Panamanian government reported on Wednesday. In the final communiqué of the virtual mission as part of the Article IV consultation, the […]]]>
, IMF Says Panama Economy Will Grow 12.5% ​​This Year

RIO DE JANEIRO, BRAZIL – The International Monetary Fund (IMF) has called Panama’s “economic outlook” “optimistic” and forecasts 12% growth for 2021, after a 17.9% drop due to the pandemic l last year, the Panamanian government reported on Wednesday.

In the final communiqué of the virtual mission as part of the Article IV consultation, the IMF stated that “the growth forecast for the Panamanian economy in 2021 is 12%, supported by the dynamics of the immunization program. , large-scale copper production and the revival of private investment ”.

Panama has applied 849,376 doses of covid-19 vaccine as part of the national immunization program that began on January 20. The government has said it aims to immunize the vast majority of the population this year after consolidating a portfolio of 9.2 million doses.

Panama Canal. (Internet photo reproduction)

A possible slowdown in globalization could also affect the pace of Panama’s recovery, which would negatively affect the activity of the canal and the logistics sector.

“To protect against these potential external shocks, Panama requested a two-year precautionary and liquidity line, which was approved by the IMF’s executive board in January 2021, for an amount equivalent to 500% of the quota, ”the Ministry of Economy and Finance (MEF) said in its statement.

The IMF mission considers that the development of the national capital market will increase the sources of financing and the prospects for stronger and more inclusive growth, the statement said.

Regarding the permanence of Panama in the list of countries with deficiencies in the fight against money laundering, the MEF indicated that the multilateral recognized the commitment of the Panamanian authorities to “exit” from the list drawn up by the Group of financial action (FATF), in which the country was reinserted in 2019.

The multilateral suggested that Panama “continue to improve national statistics to ensure compliance with international standards on data quality and dissemination”.


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Supply chain crisis threatens to drag global economy, Telecom News, ET Telecom https://ipmsguatemala.org/supply-chain-crisis-threatens-to-drag-global-economy-telecom-news-et-telecom/ Wed, 03 Nov 2021 07:00:00 +0000 https://ipmsguatemala.org/supply-chain-crisis-threatens-to-drag-global-economy-telecom-news-et-telecom/ Last year the global economy came to a screeching halt. This year, he started moving again, only to find himself stuck in one of the biggest traffic jams in history. New indicators developed by Bloomberg Economics highlight the end of the problem, the world’s inability to find a quick fix and how in some regions […]]]>
Last year the global economy came to a screeching halt. This year, he started moving again, only to find himself stuck in one of the biggest traffic jams in history.

New indicators developed by Bloomberg Economics highlight the end of the problem, the world’s inability to find a quick fix and how in some regions the Big Crunch of 2021 is getting even worse.
Research quantifies what is apparent to the naked eye across much of the planet – in supermarkets with empty shelves, ports where ships are backed up offshore, or auto factories where production is held back by a lack of electronic chips. Overlooking it all: Rising price tags on almost everything.

Central banks, which are already moving away from their view that inflation is “transient”, may be forced to counter price increases with earlier-than-expected interest rate hikes. This poses new threats to an already faltering recovery and could take some air out of buzzing stock and real estate prices.

Behind the traffic jams lies a mix of overloaded transportation networks, labor shortages at major bottlenecks, and demand in the United States that has been bolstered by the pandemic and more goods-driven stimulus. than on services.
Supply chain crisis threatens to drag the global economy downIt is not just a problem of displacement. The world is still struggling to do enough too.

Producers have been caught off guard by this year’s rebound after slashing material orders last year when consumers stopped spending.
Supply chain crisis threatens to drag the global economy downIn Vietnam, factories that make Nike shoes have had to cut production because migrant workers had decamped to their home provinces for fear of Covid-19. China, the world’s manufacturing powerhouse, is facing new virus outbreaks and is responding with targeted lockdowns. Its factory prices are increasing at an annual rate of 10%, the fastest since the 1990s.

Putting all of this together, Bloomberg Economics’ supply indices show shortages just off a 20-year high in the United States. The gauges for the UK and the Eurozone are at an equally high level.

The measures are based on a series of data, from ex-factory prices to the inventory-to-sales ratio for retailers, and backlog of orders for companies in the service sector. Readings of zero indicate normal conditions, negative values ​​mean abundant goods, and positive points of stress. The gauges show a sharp shift from oversupply before the Covid crisis to significant shortages today.
Supply chain crisis threatens to drag the global economy downFor global manufacturers like Toyota – which slashed September production by more than a third from 2020 levels as shortages stalled its famous just-in-time production process – as well as companies moving their products to the whole world and buyers awaiting delivery, the big question now is: when will the disruption end?

Even giants like Amazon and Apple – used to bending supply chains as they please – don’t see the situation improving quickly. Amazon said all of its fourth-quarter profit could be wiped out by increased labor and fulfillment costs. Apple said it lost $ 6 billion in sales due to its inability to meet demand and could lose more in the next quarter.

Shipping conditions are expected to start easing after the Chinese New Year in early February, “although the disruptions could last at least until the middle of next year,” said Shanella Rajanayagam, trade economist at HSBC. Even then, with pent-up demand and inventory replenishment keeping the pressure on, Rajanayagam says it could still take some time for supply chains to completely unravel.

What comes next is uncharted territory in part because of the large number of bottlenecks along the route from assembly lines to shopping carts. While a vendor waits for another book, the delays feed into each other.

Logistics systems usually weather the ups and downs of the global economy in predictable ways: growing demand spurs trade, pushing up shipping rates and heralding good times for freight carriers, until they increase their capacity and a crisis ensues.

But the pandemic has turned this cycle upside down. Even amid signs of slowing growth, the international trade pipeline has never been so clogged.
Supply chain crisis threatens to drag the global economy downThe more than 70 ships anchored off Los Angeles, for example, are loaded with enough 20-foot containers full of cargo to stretch from Southern California to Chicago if placed end to end.

And even when these ships dock, their payloads will only hit the thousands already stranded in ports awaiting a journey inland. It will require more truckers and trailers in the short term.

A longer-term solution means harnessing Covid-19, building new infrastructure such as more efficient ports, and improving technology for digital transactions and faster communication.
Supply chain crisis threatens to drag the global economy downElsewhere in the world, shipping bottlenecks have often followed severe weather and virus outbreaks, such as the recent Covid-19 outbreak in Singapore. An analysis of port congestion showed the backlog on Monday at this city-state financial and logistics hub was high, with 53 container ships at anchor, the highest number since Bloomberg began tracking data in April.

That’s a problem for the United States, where the clothes and home electronics that fill buyers’ carts depend on foreign inputs and assemblies. And with vaccination rates still low in many Asian countries, it’s a problem that won’t go away anytime soon.
Supply chain crisis threatens to drag the global economy down“For the supply chain to recover, it will take a certain amount of luck” – avoiding weather disasters or new Covid hot spots – “more time and investment to add more logistics capacity,” said Simon Heaney, Senior Director of Container Research at Drewry in London.

For a global economy emerging from the deepest recession in recent history, supply shortages caused in part by high demand are a good problem to have. The worst would clearly be the opposite: a plentiful supply because the economies remained depressed, with millions more unemployed.

But this less bad option always creates a lot of problems.
Supply chain crisis threatens to drag the global economy downInflation is already high enough to be outside the comfort zone of policymakers. In the United States, it is currently 5.4% and could stay in the 4% to 5% range next year if supply constraints do not relax, according to models from Bloomberg Economics.

That’s not to say the world is ready for a 1970s-style repeat of stagflation. It took a decade of overheating and political missteps to push US inflation above 10% to the top. era. The Fed and its peers are unlikely to make the same mistakes. And unemployment is well below its 1970s highs, and declining.

Yet the current environment – call it stagflation-lite – is a challenge for central bankers.

Keeping rates at their current lows would allow the recovery to continue, but prices are likely to soar if households and businesses come to expect the same. The tightening would reduce inflation not by tackling insufficient supply, but rather by stifling demand. This could become the monetary policy equivalent of the surgeon saying, “Operation successful, patient dead.”

Traders are currently anticipating two Fed rate hikes in 2022, two more than the median member of the Federal Open Market Committee. A Bloomberg Economics model of the Fed’s reaction function – its policy response to changes in the economy – suggests that if inflation is high and unemployment is falling, even two hikes next year might not be enough.
Supply chain crisis threatens to drag the global economy downOf course, predictions of rapid monetary tightening have always been wrong in the past, and they could be wrong again. Demand for goods could cool as the pandemic stimulus wears off or fears of tighter financial conditions erode confidence. A shift in spending from goods to services, already underway in the United States, will reduce the imbalance between tight supply and booming demand. A sustained slowdown in China could affect commodity prices.

And supply chains could also recover faster than expected. The Bloomberg gauge of shortages in the United States has dipped slightly in recent readings – while remaining at historically high levels. It’s just that there is no precedent that sheds much light on when, or how, conditions will normalize.

“The current situation is unique and quite different from the more isolated disruptions the world has experienced,” said John Butler, chairman of the World Shipping Council, which represents the largest ocean freight carriers. “How the current congestion ultimately plays out will also be different.”


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October 2021 update on the US economy https://ipmsguatemala.org/october-2021-update-on-the-us-economy/ Mon, 25 Oct 2021 07:00:00 +0000 https://ipmsguatemala.org/october-2021-update-on-the-us-economy/ By Nicolas Porter The Astor Economic Index moderated slightly in September after several months of stable readings, perhaps suggesting that the peak in output growth during the post-pandemic boom is behind us. Nonetheless, the AEI remains consistent with a strong economic state: we take a look at some of the numbers below. [wce_code id=192] Part […]]]>

By Nicolas Porter

The Astor Economic Index moderated slightly in September after several months of stable readings, perhaps suggesting that the peak in output growth during the post-pandemic boom is behind us. Nonetheless, the AEI remains consistent with a strong economic state: we take a look at some of the numbers below.

[wce_code id=192]

Part of the story behind AEI’s continued strength are the ISM purchasing managers’ indices, which are at very high levels for both manufacturing and non-manufacturing. In recent times, however, they have started to decline from their lofty heights starting in the summer. Respondents note that demand is robust, but labor and supplies are hard to come by and bottlenecks are on the rise.

Meanwhile, the non-farm payroll disappointed lower in September, gaining a meager 194,000 from consensus estimates of 474,000. August figures have been revised up to 366,000. However, some Interesting details behind the payroll number suggest that things are not as gloomy as they seem. Job losses were driven by declines in local government employment (-144,000), suggesting difficulties with the usual seasonal adjustments of education workers, while private wages increased by 317,000 The average hourly wage, meanwhile, rose sharply by 4.6% year-on-year, although the inflation-adjusted figure shows a decline of 0.8%. As a result, the door remains open for the Fed to start cutting back on schedule based on its litmus test of substantial progress towards full employment.

Speaking of falling, inflation has shown little sign of slowing down, with core CPI printing at 4.0% yoy (0.2% m / m), with headline inflation at 5.0%. 4% year-on-year. Here, too, the details reveal nuances behind the headlines that arguably cast doubts on the transient narrative. Notably, much of the gains were in “stickier” categories like housing, which makes up about a third of the CPI. Price pressures in so-called reopening categories, such as used cars and airline tickets, are slowing or dropping outright. Ultimately, the question is how much and how quickly supply chain problems are easing, and whether the American consumer is shifting the composition of their spending from goods to services.

In short, the US economy continues to show strength thanks to strong consumer demand. The interplay between price pressures and the real economy is a continuing concern, and hence the pace of real wage gains, the increase in more rigid inflation components and the continued turmoil in the supply chain. supply will all be closely watched over the next few weeks.

For more news, information and strategies, visit the website ETF strategist chain.


Astor Investment Management LLC is an SEC registered investment adviser. All information contained in this document is for informational purposes only. This is not a solicitation to offer investment advice or services in a state where it would be illegal. Analysis and research is provided for informational purposes only, and not for trading or investing purposes. All opinions expressed are as of the date of publication and subject to change. They are not intended as investment recommendations. These documents contain general information and have not been adapted for a specific recipient. There can be no assurance that Astor’s investment programs will produce profitable returns or that an Account will have similar results. You risk losing money. Past results do not guarantee future results. Please refer to the Astor Form ADV Part 2A brochure for more information on fees, risks and services.

AIM-10/15/21-OP464

All information contained in this document is for informational purposes only. This is not a solicitation to offer investment advice or services in a state where it would be illegal. Analysis and research is provided for informational purposes only, and not for trading or investing purposes. All opinions expressed are as of the date of publication and subject to change. Astor and its affiliates are not responsible for the accuracy, usefulness or availability of such information or responsible for any trading or investment based on such information. Please refer to Part 2 of the Astor Form ADV for additional information regarding charges, risks and services.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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China to step up local bond issuance to support slowing economy https://ipmsguatemala.org/china-to-step-up-local-bond-issuance-to-support-slowing-economy/ Fri, 22 Oct 2021 07:00:00 +0000 https://ipmsguatemala.org/china-to-step-up-local-bond-issuance-to-support-slowing-economy/ BEIJING, October 22 (Reuters) – China intends to step up the pace of local government special bond issuance to boost investment and economic growth, the finance ministry said on Friday, striving to meet the annual quota by at the end of November. Policymakers are looking to support a faltering recovery, as economic growth in the […]]]>

BEIJING, October 22 (Reuters)China intends to step up the pace of local government special bond issuance to boost investment and economic growth, the finance ministry said on Friday, striving to meet the annual quota by at the end of November.

Policymakers are looking to support a faltering recovery, as economic growth in the third quarter was the slowest this year, in part due to power shortages and swings in the real estate sector.

Chinese local governments issued a net amount of 2.22 trillion yuan ($ 346.97 billion) of special bonds in the first nine months of 2021, representing 61% of the annual quota, said Li Dawei, a head of the Ministry of Finance, during a briefing.

“The rate of issuance has accelerated considerably since August,” Li said.

“We will strive to complete the 2021 special bond quota by the end of November to continue promoting the positive role of special bonds in local economic and social development,” he said.

China this year set an annual quota of 3.6 trillion yuan for special bonds from local governments, which mainly finance infrastructure projects.

The figures suggest that local governments could issue a monthly average of 717 billion yuan of special bonds in October and November, a big increase from the first nine months.

About half of the funds raised through special bonds in January-September went to transportation, urban infrastructure and industrial parks, with the rest going to affordable housing, education and health care, Li said.

China’s tax revenue fell 2.1% in September from a year earlier due to slower economic growth and statistical base effects, said Liu Jinyun, a second official in the ministry.

“Tax revenue growth is expected to show a downward trend over the next few months,” Liu said, adding that the government remains on track to meet its expected revenue this year and that budgeted spending will be guaranteed, said Liu.

Tax revenue increased 16.3% in the first nine months from the previous year to reach 16.4 trillion yuan, while tax expenditures increased 2.3% from the year previous to reach 17.9 trillion yuan, Liu said.

($ 1 = 6.3982 yuan Chinese renminbi)

(Reporting by Kevin Yao; Editing by Simon Cameron-Moore)

((kevin.yao@thomsonreuters.com; +8610 5669 2128;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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North Macedonia growth expected to be higher, but the economy still faces risks https://ipmsguatemala.org/north-macedonia-growth-expected-to-be-higher-but-the-economy-still-faces-risks/ Fri, 22 Oct 2021 07:00:00 +0000 https://ipmsguatemala.org/north-macedonia-growth-expected-to-be-higher-but-the-economy-still-faces-risks/ Remittances to low- and middle-income countries are expected to have increased by 7.3% to reach $ 589 billion in 2021. This return to growth is more robust than previous estimates and follows the resilience of flows in 2020 when remittances fell only 1.7%. despite a severe global recession due to COVID-19, according to estimates from […]]]>

Remittances to low- and middle-income countries are expected to have increased by 7.3% to reach $ 589 billion in 2021. This return to growth is more robust than previous estimates and follows the resilience of flows in 2020 when remittances fell only 1.7%. despite a severe global recession due to COVID-19, according to estimates from the World Bank’s Migration and Development Note released today.

For a second year in a row, remittances to low- and middle-income countries (excluding China) are expected to exceed the sum of foreign direct investment (FDI) and overseas development assistance ( APD). This underscores the importance of remittances in providing a vital lifeline by supporting household spending on essential items such as food, health and education during times of economic hardship in countries of origin. migrants.

“Migrant remittances have largely complemented government cash transfer programs to support economically struggling families during the COVID-19 crisis. Facilitating the flow of remittances to ease strained household budgets should be a key part of government policies aimed at supporting a global recovery from the pandemic, ” said Michal Rutkowski, World Bank’s global director for social protection and employment.

Factors contributing to the strong growth in remittances are the determination of migrants to support their families in times of need, aided by the economic recovery in Europe and the United States, which in turn has been supported by stimulus programs budget and employment support. In the Gulf Cooperation Council (GCC) countries and Russia, the resumption of overseas remittances has also been facilitated by the rise in oil prices and the resulting upturn in economic activity.

Remittances grew strongly in most regions. Flows increased by 21.6% in Latin America and the Caribbean, 9.7% in the Middle East and North Africa, 8% in South Asia, 6.2% in sub-Saharan Africa and 5.3% in Europe and Central Asia. In East Asia and the Pacific, remittances fell 4% – although excluding China, remittances grew 1.4% in the region. Growth in Latin America and the Caribbean has been exceptionally strong due to the economic recovery in the United States and additional factors, including migrants’ responses to natural disasters in their countries of origin and remittances sent from there. their country of origin to migrants in transit.

The cost of sending $ 200 across international borders remained too high, averaging 6.4% of the amount transferred in the first quarter of 2021, according to the Bank’s Global Remittance Price Database. global. This is more than double the sustainable development goal of 3% by 2030. Sending money to sub-Saharan Africa (8%) is the most expensive and lowest in South Asia (4.6% ). Data shows that costs tend to be higher when remittances are sent through banks than through digital channels or through remittances that offer cash payment services.

The immediate impact of the crisis on remittances was very profound. The surprising pace of the recovery is good news. To sustain remittances, especially through digital channels, providing access to bank accounts to migrants and remittance service providers remains a key requirement. Policy responses must also continue to include migrants, particularly in the areas of access to vaccines and protection against underpayment ”, said Dilip Ratha, senior author of the Brief and director of KNOMAD.

Remittances are expected to continue growing 2.6% in 2022, in line with global macroeconomic forecasts. A resurgence of COVID-19 cases and the reimposition of mobility restrictions pose the biggest downside risk to the prospects for global growth, jobs and remittances to developing countries. The dismantling of fiscal stimulus and employment support programs, as economies recover, may also dampen remittances.

Trends in regional remittances

Officially recorded remittances to the East Asia and Pacific region are expected to decline 4% in 2021 to $ 131 billion. Excluding China, remittances to the region increased by 1.4% in 2021 and are expected to increase by 3.3% in 2022. As a percentage of gross domestic product (GDP), the region’s main recipients are more economies. small like Tonga (43.9%). , Samoa (21.1%) and the Marshall Islands (12.8%). Remittance costs: The average cost of sending $ 200 in the region fell to 6.7% in the first quarter of 2021, from 7.1% a year earlier. The five cheapest corridors in the region averaged 2.7% for transfers mainly to the Philippines; while the five most expensive corridors, excluding South Africa to China, which is an outlier, averaged 15%.

After falling 8.6% in 2020, remittances to Europe and Central Asia are expected to rise 5.3% to $ 67 billion in 2021 due to stronger economic activity in the European Union and soaring energy prices. Remittances are expected to increase 3.8% in 2022. Remittances are currently the main source of external funding in the region. Inflows were greater than or equal to the sum of FDI, portfolio investment and ODA in 2020 and 2021. As a percentage of GDP, remittances to the Kyrgyz Republic and Tajikistan exceed 25%. Remittance costs: The average cost of sending $ 200 in the region edged up to 6.6% in the first quarter of 2021, from 6.5% a year earlier, largely reflecting a large increase costs in the Turkey-Bulgaria corridor. Russia is one of the cheapest shippers in the world, with costs falling from 1.8% to 1%.

Remittances to Latin America and the Caribbean are likely to reach a new high of $ 126 billion in 2021, registering a solid 21.6% increase from 2020. Mexico, largest recipient of remittances region, received 42% ($ 52.7 billion) of the regional total. . The value of remittances as a percentage of GDP exceeds 20% for several small economies: El Salvador (26.2%), Honduras (26.6%), Jamaica (23.6%) and Guatemala (18%) ). 19 and Hurricanes Grace and Ida contributed to the increase in remittances to Mexico and Central America. Other major drivers include recovering employment levels and tax and social assistance programs in host countries, particularly the United States. An increase in the number of migrants in transit in Mexico and other countries, and the remittances they received from abroad to cover their living and travel costs, appear to be a major factor behind of the sharp increase. In 2022, remittances are forecast to increase 4.4%, mainly due to weaker growth prospects for the United States. Remittance costs: Sending $ 200 to the region cost an average of 5.5% in the first quarter of 2021, up from 6% a year earlier. Mexico remained the cheapest recipient country in the G20 group, with average costs of 3.7%. But the transfer costs are exorbitant in small corridors.

Remittances to developing countries in the Middle East and North Africa region are expected to increase by around 9.7 percent in 2021 to reach $ 62 billion, supported by a return to growth in host countries of the European Union (especially France and Spain) and the surge in world oil prices which positively affected the GCC countries. The increase was driven by strong influx gains to Egypt (12.6% to $ 33 billion) and Morocco (25% to $ 9.3 billion), respectively return migration and transit migration, playing an important role in favorable outcomes. Remittances to the Maghreb (Algeria, Morocco and Tunisia) jumped 15.2%, driven by growth in the euro area. Flows to several countries fell in 2021, notably Jordan (down 6.9%), Djibouti (down 14.8%) and Lebanon (down 0.3%). For the developing MENA region, remittances have long been the largest source of external resource flows among ODA, FDI, portfolio equity and debt flows. The outlook for remittances in 2022 is for slower growth of 3.6% due to risks from COVID-19. Remittance costs: The cost of sending $ 200 to the MENA region fell to 6.3% in the first quarter of 2021, down from 7% a year ago.

Remittances to South Asia likely increased by around 8% to reach $ 159 billion in 2021. Rising oil prices have helped economic recovery and led to surge in countries’ remittances. of the GCC who employ more than half of South Asian migrants. The economic recovery and stimulus packages in the United States also contributed to growth. In India, remittances grew by about 4.6% in 2021 to reach $ 87 billion. Pakistan experienced another record year of remittances with growth of 26% and levels reaching $ 33 billion in 2021. In addition to common drivers, the Government’s Remittances Initiative to Pakistan to support transmission through formal channels attracted significant flows. In addition, the fragile situation in Afghanistan emerged as an unexpected cause of remittances in 2021 for Afghan refugees in Pakistan as well as families in Afghanistan. Remittances are the main source of foreign exchange for the region, with revenues more than twice as large as FDI in 2021. Remittance costs: South Asia has the lowest average costs of all countries. regions of the world at 4.6%. But sending money to South Asia through official channels is expensive compared to the informal channels that remain popular. Cost-cutting policies would create a win-win situation welcomed by migrants and governments in South Asia.

Remittances to sub-Saharan Africa resumed growth in 2021, increasing 6.2% to $ 45 billion. Nigeria, the region’s largest recipient, is seeing a moderate rebound in remittances, in part due to the growing influence of policies aimed at channeling inflows through the banking system. Countries where the value of remittances as a percentage of GDP is significant are The Gambia (33.8%), Lesotho (23.5%), Cabo Verde (15.6%) and Comoros (12.3%) %). In 2022, remittances are forecast to increase 5.5% due to the continued economic recovery in Europe and the United States. Remittance costs: Costs were on average 8% in the first quarter of 2021, up from 8.9% a year ago. Although intra-regional migration accounts for over 70 percent of cross-border migration, the costs are high due to low amounts of formal flows and the use of black market exchange rates.


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Road to net zero emissions will cost global economy $ 5 billion a year: BofA https://ipmsguatemala.org/road-to-net-zero-emissions-will-cost-global-economy-5-billion-a-year-bofa/ https://ipmsguatemala.org/road-to-net-zero-emissions-will-cost-global-economy-5-billion-a-year-bofa/#respond Tue, 19 Oct 2021 19:28:43 +0000 https://ipmsguatemala.org/road-to-net-zero-emissions-will-cost-global-economy-5-billion-a-year-bofa/ Italy has “high expectations” for Saudi and Middle East green initiatives (Italian Deputy Foreign Minister) ROME: Italy had “high expectations” regarding the Saudi Green Initiative and Middle East Green Initiative events in Riyadh as well as the Kingdom’s commitment to green energy production, said a important Italian deputy. Manlio Di Stefano will represent his government […]]]>

Italy has “high expectations” for Saudi and Middle East green initiatives (Italian Deputy Foreign Minister)

ROME: Italy had “high expectations” regarding the Saudi Green Initiative and Middle East Green Initiative events in Riyadh as well as the Kingdom’s commitment to green energy production, said a important Italian deputy.

Manlio Di Stefano will represent his government at the Middle East Green Initiative Summit in the Saudi capital, and he told Arab News that his country attaches “great importance to this event”.

The 40-year-old Italian Under-Secretary (Deputy Minister) for Foreign Affairs and International Cooperation is from the Five Star Movement, the populist party founded by comedian Beppe Grillo who has been at the center of the past three years of coalition government in Italy.

After graduating in Computer Engineering in Sicily, Di Stefano worked as an IT consultant for an American company and volunteered for an Italian NGO operating in the Democratic Republic of Congo and Guatemala working on sustainable development projects.

He said: “We believe this is the moment when, globally, every country must make an effort to engage in the fight against climate change.”

The politician stressed that promoting green energy was “a way to create a market, to create infrastructure, to tell stories about climate change, where it is happening and the solutions to deal with it.”

“This event in Riyadh will be focused on how to resolve the situation with solutions and therefore we are ready to support it,” he added.

Di Stefano noted that Italy was one of the top European countries in terms of energy production links with the Middle East and North Africa region and said the EU should provide more funds to Middle Eastern countries, such as Egypt, to help finance environmental protection programs. .

He added that Italy and Egypt had collaborated on a number of projects and that the strategic interconnection was important for his country.

“We need to work more with countries that can produce renewable energy in the future. We have a lot of projects going on in North Africa and Middle East countries for power generation.

“And we believe that Italy could play a strategic role in this regard, because we can really bridge the MENA region with the northern part of Europe, where there maybe not as much capacity. green energy.

“Saudi Arabia, and this has been said very clearly by this government, really pushes a lot on the production of green energy, and Italy is at the forefront with our own industries,” he said. declared.

Di Stefano expects cooperation between Italy and Saudi Arabia, already strong through the G20 troika, to develop further.

“I think we can do more because there is a huge complementarity between our countries which is sometimes underestimated. We are obviously very attached to European values ​​and market characteristics, and we ask for the same understanding when dealing with other countries. Nevertheless, it is a bilateral relationship which is fundamental for us.

“Saudi Arabia is one of the most important countries in the MENA region, and Italy already has good cases of cooperation, such as within the G20. When we meet at the table, we speak the same language, ”he added.


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Effects of a global economy https://ipmsguatemala.org/effects-of-a-global-economy/ https://ipmsguatemala.org/effects-of-a-global-economy/#respond Tue, 19 Oct 2021 18:12:25 +0000 https://ipmsguatemala.org/effects-of-a-global-economy/ Not too long ago, a flagship Wall Street Journal article opened: “Bottlenecks in the global supply chain feed on each other, with component shortages and soaring critical raw material prices that are crushing manufacturers around the world. Unless you’ve cut yourself off from the rest of the world, you’re aware of the millions of freight […]]]>

Not too long ago, a flagship Wall Street Journal article opened: “Bottlenecks in the global supply chain feed on each other, with component shortages and soaring critical raw material prices that are crushing manufacturers around the world. Unless you’ve cut yourself off from the rest of the world, you’re aware of the millions of freight containers off the west coast of the United States waiting to be unloaded, threatening stocks of merchandise destined for shelves to fuel demands. of gifts on winter holidays.

Recently, nearly 140 countries agreed on a new set of global corporate tax rules. Put simply, these rules would require a minimum corporate tax of 15% on corporations with annual revenues of $ 870 million or more. Why? Prevent businesses from seeking low or no tax jurisdictions to avoid tax obligations. Some have called this avoidance syndrome a “race to the bottom”.

If implemented, it is estimated that these new rules would generate $ 150 billion in additional revenue for countries that have so far lost that revenue due to the circumvention of corporate tax obligations through loopholes that make ‘disappear’ incomes in places like the Cayman Islands, or where tax requirements are so low (British Virgin Islands, Bermuda, Guernsey) they are luring corporate “headquarters” to lower those obligations. These 140 countries that have accepted this pact must now ratify these rules, but there is a growing consensus that these rules are fair and equitable. Other signs of a globalized economy?

Additional proof? Let’s say you want a new Ford F-150 or a Chevy Blazer. You may have to wait if you want the full functionality of these vehicles as there is a shortage of chips from a Taiwanese company called Taiwan Semiconductor Manufacturing Company (TSMC). It makes the highest percentage of chips in the world. The United States used to make 37% of the world’s chips, now it makes less than 12%. Citizens of America, this is a national security issue and part of the reality of the global economy. Specifically, TSMC is increasing its prices between 10% and 20% to help pay for new factories in the United States and the People’s Republic of China.

As for this iconic Ford F-150 pickup, 46% of the truck’s parts are of foreign origin, according to a report in Fortune magazine. Cars.com and its annual list of “Most Manufactured Cars in the United States” indicate that GM’s SUVs, which are assembled in Dallas, Texas, contain only 41% of the parts for these cars from the United States. .

Corn and soybean prices? These prices depend on a variety of different demand, weather and trade conditions around the world, from Brazil to China to US markets.

Cost of goods in the United States? It all depends on bilateral and multilateral trade agreements, trade sanctions and trade wars.

My New Holland tractor evolved from the Ford brand but today New Holland is from Italy, and its safety switches which have failed several times now are made in China.

5G networks are coming quickly. The most advanced company in terms of equipment and patents for these 5G network devices is the Chinese company Huawei Inc. The United States has security concerns regarding these advanced modems, but some of our allies think the price is too good to drop, creating tension with our allies.

Germany wants Russian oil and natural gas despite our concerns expressed about how this might affect Western economic and security cohesion.

Without India, we would not have the supply of pharmaceuticals in the United States that we need and use on a regular basis.

Without workers in Mexico and Guatemala, American families would find lots of empty shelves in our grocery stores.

A Gallup poll from February 2021 reported that 50% of Americans now say China is the world’s largest economic power, while only 37% of Americans say it is the United States. While this is not yet true, it could be true by the end of this decade.

Then there is the issue of cryptocurrencies. There is nothing the Chinese would love more than to surpass the US dollar when it comes to international finance and global payment for goods and services with a China-based cryptocurrency.

Finally, one of the effects of supply chain bottlenecks is the effect on what is now called “just-in-time” production. Manufacturers like Boeing, Airbus, GM, Ford, and tech companies have embraced this method of inventory management of asking suppliers around the world to ship parts as needed, just in time. (A.) It reduces costs and (B.) It reduces storage costs.

But when the supply chain hiccups, global manufacturing slows down, jobs are lost or suspended, and ultimately consumers suffer. The effects of COVID-19 and the hiccups are turning into a global economic pandemic.

The point of all of this is for the U.S. team to pull itself together, leveraging its economic strength and political prowess to get the best feedback on evolving global economic issues and especially trade issues. If we continue to fight politically, as a nation, then we will lose the global perspective that keeps us at the forefront of economic issues in this increasingly interdependent world.

Bill Sims is a Hillsboro resident, retired chairman of the Denver Council on Foreign Relations, author, and runs a small farm in Berrysville with his wife. He is a former educator, executive and founding president.

Columnist with Bill Sims


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China’s economic growth weakens amid slowing construction, Auto News, ET Auto https://ipmsguatemala.org/chinas-economic-growth-weakens-amid-slowing-construction-auto-news-et-auto/ https://ipmsguatemala.org/chinas-economic-growth-weakens-amid-slowing-construction-auto-news-et-auto/#respond Mon, 18 Oct 2021 04:24:00 +0000 https://ipmsguatemala.org/chinas-economic-growth-weakens-amid-slowing-construction-auto-news-et-auto/ Manufacturing has been hampered by shortages of processor chips and other components due to the pandemic. BEIJING: China’s economic growth weakened in the last quarter as a construction slowdown and official restrictions on energy use by factories weighed on the country’s recovery from the coronavirus pandemic. The world’s second-largest economy grew 4.9% more than a […]]]>
Manufacturing has been hampered by shortages of processor chips and other components due to the pandemic.

BEIJING: China’s economic growth weakened in the last quarter as a construction slowdown and official restrictions on energy use by factories weighed on the country’s recovery from the coronavirus pandemic.

The world’s second-largest economy grew 4.9% more than a year ago in the three months ending September, down from 7.9% in the previous quarter, government data showed on Monday. Manufacturing output, retail sales, and investment in construction and other fixed assets all weakened.

Growth is under pressure from government controls aimed at making the energy-hungry economy more efficient and reducing reliance on debt which Chinese leaders say is dangerously high and could cause financial problems. Manufacturing has been hampered by shortages of processor chips and other components due to the pandemic.

Compared to the previous quarter, depending on how other major economies are measured, output in the July-September period barely increased, increasing only 0.2%. This was down from 1.2% in the April-June period and one of the weakest quarters of the past decade.

“Growth will slow down further,” Louis Kuijs of Oxford Economics said in a report. He said “dismal growth figures” in the coming months should prompt Beijing to relax loan controls and try to support activity by encouraging infrastructure development.

Construction, an industry that supports millions of jobs, has slowed since regulators tightened control over developer borrowing last year.

One of the biggest, Evergrande Group, is struggling to avoid defaulting on billions of dollars owed to bondholders. This has fueled fears about other developers, although economists say the threat to global financial markets is low.

The manufacturing sector has been depressed by power cuts imposed by some large provinces to avoid exceeding official efficiency targets.

Factory output barely increased in September, increasing only 0.05% from August. This is down from the 7.3% growth recorded in the first nine months of the year.

Private sector forecasters have slashed their growth prospects this year for China, even though they still expect around 8%, which would be among the strongest in the world. The ruling Communist Party’s official target is “over 6%,” which leaves Beijing free to keep its controls in place.

“The short-term outlook for the Chinese economy in the fourth quarter remains difficult, due to the expected impact of persistent electricity shortages as the winter season approaches and a continued slowdown in the real estate sector,” said said Rajiv Biswas of IHS Market in a report. “The real estate sector continues to be affected by uncertainties related to Evergrande’s debt problems and fears of contagion to certain other real estate developers.”

This year’s economic figures have been overstated due to the comparison to 2020, when factories and stores were closed to fight the coronavirus.

The economy grew at a record 18.3% in the first quarter of 2021, but forecasters said the rebound was already stabilizing.

In September, growth in retail spending weakened to 4.4% year-on-year from 16.4% in the first nine months.

Investment in real estate, factories, housing and other fixed assets rose 0.17% in September, from 7.3% in the first nine months.

Auto sales in the world’s largest industry market fell 16.5% in September from a year earlier, according to the China Association of Automobile Manufacturers. The group said production was disrupted by processor chip shortages.

Imports, an indicator of China’s domestic demand, rose 17.6% in September from a year earlier, but this was barely half of the 33% growth in the previous month.

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He said the impact of the chip shortage would exceed that of last year’s pandemic shutdowns, and called on the government to activate an aid package created amid the coronavirus pandemic last year to compensate people. companies for the wages of inactive workers.

The global auto industry has been badly hit by a shortage of chips that are key components for vehicles, forcing several major brands to temporarily close factories.


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