China 2012 Trade Growth Likely At 6%: Commerce Minister

China's foreign trade is likely to hit a growth rate of around 6 percent this year, Commerce Minister Chen Deming was quoted as saying by Xinhua news agency.

This was much below the official growth target of 10 percent. According to customs data, exports rose 2.9 percent year-on-year in November and imports recorded zero growth.

Chen also noted that the country's foreign direct investment will likely total $110 billion this year. Outbound direct investment by non-financial institutions will reach $70 billion in 2012, the minister was quoted as saying.

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2012-12-28 09:42

Turkey Tourist Arrivals Rise In November

The number of visitors to Turkey increased at a faster pace in November, data released by the Ministry of Tourism showed Tuesday. Visitor arrivals rose 2. news.instaforex.com »

2012-12-25 17:42

New Zealand GDP Rises 0.2% In Q3

New Zealand's gross domestic product was up 0.2 percent in the third quarter of 2012 compared to the previous three months, Statistics New Zealand said on Thursday.

That missed forecasts for a rise of 0.4 percent following the downwardly revised increase of 0.3 percent in the second quarter (originally 0.6 percent).

On a yearly basis, GDP was up 2.5 percent - matching forecasts and slowing from 2.6 percent in the previous three months.

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2012-12-20 03:04

U.K. Inflation Steady At 2.7%

U.K. annual inflation held steady in November at the highest level since May on increases in food and energy bills, official data showed Tuesday.

Consumer price inflation stabilized at 2.7 percent in November, figures from the Office for National Statistics revealed Tuesday. Inflation was at a 34-month low of 2.2 percent in September.

The November rate came in line with economists' expectations, but continues to hover above the 2 percent target. The highest upward impact on inflation was from food prices and utility charges, while fuel prices exerted downward pressure.

Core inflation that excludes energy, food, alcoholic beverages and tobacco, also remained unchanged at 2.6 percent in November. The rate was forecast to rise marginally to 2.7 percent.

As inflation is set to stay between 2.5 percent and 3 percent for the best part of the next year due to increases in utility and food prices, the squeeze on households' spending power looks likely to persist throughout 2013, said Samuel Tombs at Capital Economics. Nonetheless, inflation will eventually fall to a very low rate.

IHS Global Insight's Chief UK economist Howard Archer said he expects consumer price inflation to fall to 2.2 percent by the end of 2013 and finally below 2 percent in 2014.

Month-on-month, consumer prices increased at a pace of 0.2 percent, in line with forecast, but slower than a 0.5 percent rise in October, data showed.

Retail price inflation, at the same time, slowed to 3 percent from 3.2 percent in October. Mortgage interest payments had a downward impact on the annual change.

Excluding mortgage interest payments, retail prices climbed 2.9 percent annually, down from 3.1 percent a month ago. Economists had forecast the annual rate to remain at 3.1 percent.

In a separate communique, the statistical office said factory-gate inflation slowed in November. Output price inflation fell to 2.2 percent in November from 2.6 percent a month ago. It was forecast to ease to 2.5 percent.

Meanwhile, core output price inflation that strips out food, beverages, tobacco and petroleum, held steady at 1.4 percent.

Annually, input prices slipped 0.3 percent in November after staying flat in October. On a monthly basis, the input price index edged up 0.1 percent, the same rate as seen in September and October.

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2012-12-18 15:42

Ireland Gets $1.17 Bln IMF Loan Under Bailout Program

The International Monetary Fund (IMF) on Monday approved the disbursement of $1.17 billion to Ireland under the bailout program, saying that the country has advanced reforms and continued steadfast policy implementation even as economic growth slowed.

The lender, meanwhile, warned that the Irish government should defer any additional fiscal consolidation to 2015 to protect the recovery, if next year's growth were to disappoint.

The decision followed the completion of the eighth review of Ireland's economic performance under a program supported by a three-year loan arrangement under the Extended Fund Facility. The latest batch brings total disbursements under the program to $25.49 billion.

The arrangement is part of a financing package amounting to $111.9 billion or EUR 85 billion, which is also supported by the European Financial Stabilization Mechanism and European Financial Stability Facility, bilateral loans from Denmark, Sweden, and the United Kingdom, and Ireland's own contributions.

The IMF forecasts that Ireland would comfortably meet its 8.6 percent deficit target for 2012 despite health overruns and higher social welfare spending owing to high unemployment.

The economy is expected to record a gradual recovery, with growth of 1.1 percent in 2013 and 2.2 percent in 2014, with public debt expected to peak at 122 percent of GDP in 2013, the IMF said.

"All program targets have been met and a range of fiscal, financial, and structural reforms are in train," IMF's First Deputy Managing Director and Acting Chair David Lipton said.

"The Medium-Term Fiscal Statement set out a phased path for considerable further fiscal consolidation to bring the budget deficit below 3 percent by 2015."

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2012-12-18 11:12

French Leading Index Drops In October, Conference Board Says

An indicator of French economic activity declined in October after moderate increases throughout the third quarter of 2012, the Conference Board said in a report on Monday. news.instaforex.com »

2012-12-17 12:42

Eurozone Downturn Slows On German Recovery

The downturn in Eurozone slowed in December as the German private sector returned to growth, while contractions in the rest of the region remain worrying, survey results from Markit Economics showed Friday.

The composite Purchasing Managers' Index rose to a nine-month high of 47.3 in December from 46.5 in November. A reading below 50 suggests contraction.

"The survey is still consistent with euro area GDP falling for the third successive quarter," said Chris Williamson, chief economist at Markit.

The flash services PMI climbed more-than-expected to 47.8 from 46.7 in November. The index was forecast to rise to 47 in December. The manufacturing PMI, at the same time, edged up to 46.3 from 46.2 last month. The expected reading was 46.6.

Output continued to fall in manufacturing and services, though in both cases the rate of decline showed signs of moderating. The pace of decline of new business moderated, but the easing was only marginal.

The rate of job losses, at the same time, slowed in December, hitting the lowest since August. A stabilization of headcounts in Germany contrasted with falling employment in France and elsewhere across the Eurozone on average.

In the face of broad-based weakness in demand, inflationary pressures remained muted in December. Input prices rose at a slightly stronger rate, but the rate of increase has shown little overall change over the past four months.

Final data from Eurozone confirmed an easing in inflation to 2.2 percent in November. The decrease largely reflected a slowdown in energy price growth to 5.7 percent from 8 percent.

Germany's private sector expanded after contracting for eight straight months, underpinned by service sector recovery. The flash composite output index came in at 50.5 in December, an improvement on November's 49.2.

The German services PMI rose to 52.1 from 49.7 in November. Economists had forecast the index to rise to no-change level of 50. On the other hand, the manufacturing PMI fell unexpectedly to 46.3 from 46.8 in the prior month.

Meanwhile, the Ifo institute on Thursday trimmed its 2013 GDP growth forecast to 0.7 percent from 1.3 percent. The think tank forecast the economy to contract in the fourth quarter of 2012, before staging a modest recovery in 2013.

Data today showed that the downturn in the French private sector output continued in December, but the rate of contraction slowed. The flash composite output index rose to 45, a 4-month high, from 44.3 in November.

The French services PMI climbed to 46, in line with expectations, from 45.8 a month ago. Likewise, the manufacturing PMI rose to 44.6 in December from 44.5 in November. The manufacturing PMI stayed slightly below the consensus forecast of 44.9.

Ernst & Young on Thursday said the Eurozone will shrink 0.2 percent next year. The firm expects euro area to enter 2013 with a brighter outlook than twelve months ago.

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2012-12-14 15:42

Switzerland Maintains Currency Ceiling; Keeps Rate Steady

The Swiss National Bank retained the currency ceiling and its key interest rate near zero as widely expected by economists, as the bank sees sluggish growth in the coming year.

The bank led by President Thomas Jordan decided on Thursday to maintain the minimum exchange rate of CHF 1.20 per euro.

The SNB said it will continue to enforce the floor rate with the 'utmost determination' as an appreciation of the Swiss franc would compromise price stability and would have serious consequences for the Swiss economy.

Further, the bank reiterated that it is prepared to buy foreign currency in 'unlimited quantities' to enforce the exchange rate.

The target range for the three-month Libor was maintained at 0.0-0.25 percent. The bank said it stands ready to take further measures at any time, if needed.

For 2012, the SNB forecasts consumer prices to fall 0.7 percent, compared to a 0.6 percent drop estimated at the September meeting.

The bank expects overall prices to ease 0.1 percent in 2013 and inflation at 0.4 percent in 2014. In the foreseeable future, there is no risk of inflation in Switzerland, it said. In September, the bank had estimated a 0.2 percent inflation for 2013.

According to the SNB, economic growth in Switzerland for the year 2012 is likely to remain unchanged at around 1 percent, in line with September forecast. For 2013, the bank expects growth of 1 percent-1.5 percent.

The economy grew 0.6 percent in the third quarter, strongly recovering from a 0.1 percent contraction in the previous three months.

Although real GDP in the third quarter increased following a temporary downturn, the SNB expects significant weakening in growth in the fourth quarter.

Even at current levels, the currency is likely to act as a drag on growth in the coming quarters, Jonathan Loynes, chief European economist at Capital Economics said.

If Eurozone crisis re-escalate, safe haven flows into the currency may well pick back up again, providing a sterner test of the SNB's determination, he said.

The Swiss economic growth in 2013 is likely to be weaker than previously thought due to deteriorating global economic conditions, the State Secretariat For Economic Affairs (SECO) suggested Thursday.

Gross domestic product is now expected to grow 1.3 percent next year, at a slightly weaker pace than the 1.4 percent growth forecast in September. The GDP projection for this year was left unchanged at 1 percent. Growth is seen picking up momentum further in 2014 with the GDP expanding 2 percent

The KOF Institute last week lowered the Swiss economic growth, citing weaker exports and investments. It projects 1.2 percent growth for next year.

Earlier, the SNB had introduced a countercyclical capital buffer allowing the Federal Council to increase the capital buffer of banks depending on potential excesses in the Swiss credit market. ING Bank NV's economist Julien Manceaux expects this facility to be used in 2013.

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2012-12-13 15:24

U.K. Jobless Claims Drop Unexpectedly, Employment At Record High

U.K. claimant count declined unexpectedly in November and employment reached a record through the three months to October, confounding the weakness in economic activity.

Claimant count dropped by 3,000 month-on-month to 1.58 million in November, the Office for National Statistics said Wednesday. Economists had forecast the figure to rise by 7,000. Claims rose by 6,000 in October, instead of the initially reported 10,100.

At the same time, the claimant count rate held steady at 4.8 percent, as widely expected for November.

Suggesting resilience in the labor market, the number of people out of work declined sharply, while employment increased during the three months ended October.

During the three-month period, there were 2.51 million unemployed people, down 82,000 from May to July, marking the biggest fall since 2001. The jobless rate held at 7.8 percent, matching economists' expectations.

The number of people in work totaled 29.601 million, up 40,000 from the May to July period. The U.K. saw the highest number of people in job since records began in 1971.

According to the Report on Jobs from Recruitment and Employment Confederation and KPMG, permanent placements in the U.K. increased at the fastest pace for 19 months in November. There was also a faster growth in job vacancies due to strong demand from private sector employers.

However, IHS Global Insight's Chief UK economist Howard Archer said there is a real danger that the increase in employment in private sector will not be enough to offset job cuts in the public sector and combat the increasing labor force.

Consequently, Archer said unemployment could trend up gradually to a peak of 2.65 million in late-2013/early-2014, giving an unemployment rate of 8.2 percent.

Moreover, the ONS data showed that total pay including bonus rose only 1.8 percent during three months to October from the corresponding period of last year. At the same time, regular pay, excluding bonuses climbed 1.7 percent.

Consumer price inflation at 2.7 percent in October indicates that real pay fall short to meet rising prices.

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2012-12-12 15:35

Slovak Inflation Slows In November

Consumer price inflation in Slovakia weakened in November, after rising in the previous month, data released by the Statistical Office of the Slovak Republic showed Wednesday. news.instaforex.com »

2012-12-12 11:42

Germany Nov. HICP Inflation Revised Down

Germany's harmonized index of consumer prices rose less than estimated in the preliminary report in November, final figures published by the Federal Statistical Office showed Wednesday.

The HICP inflation was 1.9 percent in November, a tad below 2 percent reported initially. On a monthly basis, HICP fell 0.2 percent compared with 0.1 percent fall reported earlier.

The CPI rose 1.9 percent year-on-year and fell 0.1 percent on a monthly basis in November. The figures matched the preliminary estimates.

In October, CPI inflation was 2 percent. The slight decrease of the inflation rate in November is largely due to energy prices.

Energy prices rose 3.8 percent year-on-year in November, which is a smaller increase than in the months before. Not considering energy prices, the rate of inflation has remained constant at 1.6 percent.

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2012-12-12 11:21

German ZEW Economic Expectations Recover Strongly

Germany's economic confidence turned positive in December for the first time since May 2012 as the largest euro area economy is expected to avoid a recession, a closely watched survey of financial market experts showed Tuesday.

The Indicator of Economic Sentiment climbed sharply by 22.6 points to 6.9 for December, survey from the ZEW Centre for European Economic Research revealed. Economists had forecast the reading to improve to -11.5.

Positive development in the U.S. also contributed to the improvement, which spurred the hope that the global economy will gain momentum. "The financial market experts forecast the development of the economic activity in 2013 with pre-Christmas optimism," said ZEW President Wolfgang Franz.

Although the cooling down of the economic activity will last until the beginning of 2013, Germany will not have to face a recession, provided the crises in the Eurozone do not deepen once again, he added.

The assessment of the current economic situation in Germany remained almost unchanged in December. The corresponding indicator gained 0.3 points to 5.7.

In contrast to the findings of ZEW survey, the German economic ministry today said the activity will weaken further in the final quarter of 2012. For the coming months, leading indicators show a dim picture, but with bright spots, it said in a statement.

The German economy grew 0.2 percent in the third quarter. Citing widespread uncertainty and difficult economic situation in parts of the euro area, the Bundesbank last week slashed its 2013 growth forecast for Germany to 0.4 percent from 1.6 percent.

Economic expectations for the Eurozone rose by 10.2 points to 7.6 points, the survey showed. The indicator for the current economic situation, at the same time, came in at -79.9 points-mark, up 0.4 points from the prior month.

The European Central Bank cut its economic forecasts for the euro area last week. The central bank projects GDP contractions of 0.5 percent this year and 0.3 percent in 2013. The economy is expected to recover in 2014 with a growth of 1.2 percent.

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2012-12-11 15:42