Tag: deficit

S&P downgrade Italy’s sovereign debt

S&P downgrade Italy’s sovereign debt

Credit ratings agency Standard & Poor’s (S&P) has today downgraded Italy’s sovereign debt by one notch to A from A+, and kept it on a negative outlook. The agency cited weak economic growth prospects, which may impact on the country’s ability to reduce its deficit. The Italian Senate recently passed a tough austerity budget, which […]

September 20, 2011 More
French economic growth at zero in Q2

French economic growth at zero in Q2

France’s economic growth showed a reading of zero in the April to June quarter, compared with 0.9% in the previous three months, according to Insee, the national statistical agency. The reading was short of forecasts of a 0.3% rise for the quarter. The lack of growth was attributed to a fall in household consumption, which […]

August 12, 2011 More
US reach agreement on raising US debt ceiling

US reach agreement on raising US debt ceiling

US President Barack Obama has announced Republican and Democratic leaders have come to an agreement on raising the Government debt ceiling to avoid defaulting on its debt. “I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default, a default that […]

August 1, 2011 More
Moody’s warns of Spanish downgrade

Moody’s warns of Spanish downgrade

July 29, 2011 More
US trade deficit widens as oil imports surge

US trade deficit widens as oil imports surge

The US trade deficit swelled in May to $50.2 billion (£31.7 billion) from $43.6 billion the previous month, as oil imports surged. According to the Commerce Department, the trade deficit rose to the highest level since October 2008. Exports fell by 0.5% on a monthly basis to $174.9 billion, while imports rose by 2.6% on […]

July 13, 2011 More
IMF warns Spanish Government to reduce spending

IMF warns Spanish Government to reduce spending

The International Monetary Fund (IMF) has warned the Spanish Government to continue with its efforts of cutting public spending and reducing unemployment. Like many other Governments across the globe, Spain is taking steps to reduce the deficit but the IMF warned the economy still faces “considerable” risks. In an annual report, the Washington-based Fund said: […]

June 21, 2011 More
UK borrowing falls in May

UK borrowing falls in May

The Office for National Statistics (ONS) has today revealed UK public sector borrowing fell slightly last month. According to the ONS, public sector borrowing fell to £15.15 billion last month compared with £16.46 billion in May last year. The figure was lower than analysts’ expectations of £15.75 billion and was attributed to an increase in […]

Concerns for UK economy as many call for “Plan B”

Concerns for UK economy as many call for “Plan B”

Some of Britain’s top economists are calling for Chancellor George Osborne to come up with a plan B for the UK economy. It has been suggested that the Chancellor’s massive spending cuts are too harsh for the fragile economy and a plan B on economic policy is required. The comments come shortly after the OECD’s […]

June 6, 2011 More
Standard & Poor’s give US negative outlook

Standard & Poor’s give US negative outlook

Standard & Poor’s (S&P) has today lowered the US’ top notch credit rating from stable to negative – suggesting that the rating could be cut within the next two years. The rating agency believes that the Democrats and Republicans will not be able to agree a plan to cut the spiralling US deficit. President Barack […]

April 18, 2011 More
Report reveals £8bn windfall for Government

Report reveals £8bn windfall for Government

A report by the Ernst & Young Item Club has suggested the Government could be in line for an £8 billion windfall this year due to a rebound in tax revenues and a cut in public spending. The Item Club is estimating public borrowing for the financial year to the end of March to be […]

March 21, 2011 More
Government will maintain levy on bank profits

Government will maintain levy on bank profits

Chancellor George Osborne has confirmed he is maintaining the levy on banks, raising an additional £800 million this year and £2.5 billion in the coming years. In a radio interview, he said he wants to ensure “banks make a fair contribution to closing the deficit”. Initially, Mr Osborne said the Government’s new bank levy would […]

February 8, 2011 More
David Cameron rules out major tax cuts

David Cameron rules out major tax cuts

Prime Minister David Cameron has said the Government will not introduce major tax cuts but insisted he remains a “tax-cutting Tory”. His comments come just a few days after Deputy Prime Minister, Nick Clegg, claimed that millions of middle-class families who are set to become higher rate taxpayers from April will “barely notice” the difference. […]

February 7, 2011 More
Estonia becomes 17th country to join euro zone

Estonia becomes 17th country to join euro zone

The Baltic republic of Estonia adopted the euro yesterday – becoming the euro zone’s 17th member. Estonia, a country of 1.3 million people, had hoped to join the euro in 2007 but was prevented from doing so by high inflation. However, its entry into the euro zone comes at a time when the region is […]

January 2, 2011 More
David Cameron delivers new year message

David Cameron delivers new year message

British Prime Minister, David Cameron, has warned that next year will be “difficult” as he delivered his new year speech. However, Mr Cameron said Britain has a “really bright future to look forward to” and defended his Government’s spending cuts as tough but necessary, in order to trim the budget deficit. The cuts have received […]

December 31, 2010 More
Greek parliament passes 2011 austerity budget

Greek parliament passes 2011 austerity budget

The Greek parliament has today approved its 2011 austerity budget, which includes further spending cuts and tax hikes. The budget, which is part of the condition of its bailout from the European Union and the International Monetary Fund (IMF), is an attempt to trim the country’s deficit to 7.4% of GDP next year, down from […]

December 23, 2010 More
Irish economy expands 0.5% in Q3

Irish economy expands 0.5% in Q3

Ireland’s Central Statistics Office (CSO) has today revealed Ireland’s economy experienced growth in the July to September period. The economy expanded by 0.5% in the third quarter compared with the previous quarter – albeit, the figure was slightly below expectations. The former “Celtic Tiger” economy contracted in the second quarter after emerging from recession in […]

December 16, 2010 More
Spain will not follow Greece and Ireland and seek bailout

Spain will not follow Greece and Ireland and seek bailout

Spain’s finance minister has insisted that the country will not follow Greece and Ireland and seek a bailout. In a newspaper interview published today, Elena Salgado said: “Our fiscal adjustment is on track… we have done all the things that we had to do with our financial sector.” She added that Spain is “absolutely not” […]

December 6, 2010 More
US heading for harsh spending cuts to bring deficit down

US heading for harsh spending cuts to bring deficit down

A US panel has been established to help slash the budget deficit and it is calling for harsh spending cuts and tax hikes. In the 12 months to September, the budget deficit stood at $1.3 trillion (£837 billion) and experts have argued that more should be done to narrow the gap. This week, President Barack […]

December 1, 2010 More
Portugal reiterates it does not require financial assistance

Portugal reiterates it does not require financial assistance

Portugal has, once again, denied that it does not require an EU bailout as speculation mounts that it will follow Greece and Ireland and request emergency funds. The euro has been falling over recent days over debt concerns in the euro zone. The single currency is falling as investors are nervous that the debt crisis […]

OBR expected to revise UK growth, Osborne to give update

OBR expected to revise UK growth, Osborne to give update

The Office of Budget Responsibility (OBR), which was established in May, is today expected to revise its growth forecast for the UK for the 2010 year. The independent body, which was set up by the coalition Government to assess the state of public finances, is expected to revise its growth forecast to 1.7% from the […]

November 29, 2010 More