Indonesia has taken significant measures to reduce its 2023 budget deficit, signaling a commitment to economic stability despite challenges in the global economy. The finance minister, Sri Mulyani Indrawati, announced that the deficit has been lowered to 347.6 trillion rupiah ($22.48 billion), equivalent to 1.65% of gross domestic product (GDP) based on unaudited figures. Indonesia’s
Economy
The Bank of Israel has made the decision to lower short-term borrowing rates, marking the first time in almost four years that the central bank has eased monetary policy. This move makes Israel the first developed country to lower interest rates. While the bank cited a stabilisation of financial markets since the outbreak of the
Peru’s inflation rate for the year 2023 closed at a mere 3.24%, marking the lowest annual rate in three years, according to official data revealed on Monday. This slight rise in consumer prices in December brought a glimmer of hope for the country, which is currently grappling with a severe economic recession. The central bank
Brazil’s Vice President Geraldo Alckmin recently announced a set of government measures aimed at revitalizing the country’s economy and boosting investment in transportation and machinery. These initiatives are part of President Luiz Inacio Lula da Silva’s plan to “re-industrialize” Brazil, which has been struggling to recover its industrial output since the pandemic. The government intends
In a televised New Year’s speech, President Xi Jinping outlined China’s plans to consolidate and enhance its positive economic recovery trend in 2024. As the country navigates through the challenges posed by the ongoing pandemic, Xi emphasized the need for deeper reforms to sustain long-term economic development. This article delves into President Xi’s vision for
China’s manufacturing sector has faced yet another setback as activity contracted for the third consecutive month in December. The official purchasing managers’ index (PMI), which measures the health of the sector, fell to 49.0, indicating a contraction and undershooting the median forecast of 49.5. This unexpected decline raises concerns about China’s economic recovery and strengthens
In recent months, China has taken a different approach to stabilize the yuan compared to its actions in 2015. Back then, the People’s Bank of China (PBOC) resorted to official intervention and burned $1 trillion in reserves to support the currency. However, this time around, as China’s economy faced challenges and capital outflows intensified, the
The U.S. stock market ended 2023 on a high note, with the S&P 500 posting an annual gain of just over 24%. This substantial increase has market strategists optimistic about the potential for further gains in the coming year. The strong performance of 2023 has historically had a positive impact on subsequent years, driven by
Colombia’s minimum wage is set to increase by 12% in 2024, according to Labor Minister Gloria Ines Ramirez. This will bring the monthly minimum wage to 1.3 million pesos ($340). The wage increase of 140,000 pesos ($36.63) per month comes at a time when the country is grappling with high inflation and a struggling economy.
After a historic selloff, investors are cautiously optimistic about the prospects for the U.S. fixed income market in 2024. The fourth-quarter rally saved bonds from a third consecutive annual loss, providing some relief after the worst-ever decline the previous year. Expectations of rate cuts by the Federal Reserve have fueled hopes of lower yields and
The Federal Reserve’s dovish December pivot has raised questions about the future of the weakening dollar. While the case for the dollar’s decline into 2024 seems plausible, the strength of the U.S. economy could limit its downfall. Following the Fed’s rate hikes in 2022, the U.S. currency reached a two-decade high. However, it has been
The dollar has experienced a downward trend throughout 2023, resulting in its first yearly loss against the euro and a basket of currencies since 2020. The decline is attributed to expectations that the U.S. Federal Reserve will initiate rate cuts in the coming year as inflation moderates. As we enter 2024, questions arise regarding when