IMF raises global economic growth forecast

The International Monetary Fund (IMF) has raised its forecast for global growth this year, from 4.2% to 4.6%.It said the world economy grew strongly in the first part of this year, mainly thanks to robust growth in Asia. However, the UK was almost unique in having its 2010 growth forecast revised slightly down, while its 2011 forecast was cut by the IMF from 2.5% to 2.1%. The IMF also warned risks had increased and there had been a setback in progress towards financial stability.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

UK interest rates maintained at record low of 0.5%

The Bank of England has kept UK interest rates on hold at a record low of 0.5% for the 16th consecutive month. The Bank's Monetary Policy Committee (MPC) also decided not to inject any more money into the economy under its policy of quantitative easing (QE).The decision had been expected but calls have been growing for an increase in rates to curb inflation. Separately, a leading think tank warned that the UK recovery faced "headwinds" in the wake of last month's Budget. The National Institute of Economic and Social Research (Niesr) estimated that the economy grew by 0.7% in the three months to the end of June, marking a slowdown from the 0.9% expansion seen in the three months to May.Official gross domestic product (GDP) figures for the second quarter will be released on 23 July.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Market rally spurred by bank stress test hopes

Stock markets, oil prices and the euro have gained ground for a third day, spurred on by hopes that European banks will pass EU stress tests. The Dow Jones rose 0.5% in early trading, while European markets were up between 1% and 1.5% by mid-afternoon. The optimism also helped the euro add to a month-long rally, nearing $1.27. And US light crude oil rose above $75 a barrel, on hopes that the US and Europe would avoid a relapse into recession, though later slipped back. London Brent crude also rose towards $75 a barrel.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

UK manufacturing sees strongest growth in 15 years

UK manufacturing in May grew at its fastest pace in more than 15 years, official data has shown. Manufacturing output rose by 4.3% on the same month a year ago, the highest rate since December 1994, the Office for National Statistics (ONS) said. The increase was driven by the machinery and equipment industries, as well as basic metals and metal products, the ONS said. Month-on-month, manufacturing output was 0.3% higher. "The new figures leave manufacturing firmly in positive territory when compared with a year ago, and they reinforce expectations that GDP will record stronger growth in the second quarter of 2010," commented David Kern, chief economist at the British Chambers of Commerce.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

EU calls for joint action to withdraw economic support

The European Union (EU) has urged the G20 club of nations to agree when to scrap their economic support packages. The EU said a coordinated exit from stimulus measures would help restore confidence and reduce the risk that some countries would be disadvantaged. EU leaders made the call in an open letter ahead of this weekend's G20 summit in Canada. The EU also said the G20 should reconsider the introduction of a global transaction tax on banks. During the global financial meltdown, countries introduced a variety of support mechanisms, from loan guarantees to emergency tax breaks, to maintain growth.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

US home sales in unexpected fall

Sales of previously-owned US homes fell unexpectedly in May despite tax credits designed to encourage homebuyers, figures suggest. Sales fell 2.2% to 5.66 million after a surge in sales in April, the National Association of Realtors (NAR) said. Analysts had expected sales to rise. However, the NAR said sales were still strong and 19% higher than a year ago. The group's chief economist, Lawrence Yun, said tax credits would continue to boost sales next month. We are witnessing the ongoing effects of the home buyer tax credit, which we'll also see in June real estate closings, he said. But the number of home sales this month may be affected by delays in mortgage deals, he explained.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

US economy still in difficulty, says Geithner

US Treasury Secretary Timothy Geithner has warned that the country's economy "is still going through an incredibly difficult period". He told a congressional hearing the downturn's impact would be lasting. Mr Geithner also revealed that the US government had recovered more than half the money it had spent on the Troubled Asset Relief Program (Tarp). He added that Tarp investments had generated $24bn (£16bn) in additional revenue for taxpayers. Mr Geithner said "millions of Americans are still looking for work and are suffering from the damage of a deep recession. The impact of this crisis will be lasting. But he told the Congressional Oversight Panel the US government's actions to boost the economy during the crisis had cost less than expected.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).