![]() ![]() Mr Cotis, who has previously been rather downbeat on the eurozone's prospects, said it had grown more robustly than he had expected, helped in part by transitory factors such as the World Cup and time-limited construction subsidies, both in Germany. The OECD also revised up its forecast for growth in the 12-member eurozone, to 2.7% from the 2.2% it had pencilled in in May. Mr Cotis said he believed this pace would continue in the second half of the year. The British economy slowed sharply last year as consumer spending and the housing market faltered, but an interest rate cut in August 2005 contributed to a rebound in growth, which recovered to 0.8% in the second quarter from the first this year, above the economy's long-term trend growth rate, as consumer spending and business investment recovered. "I would not want to double-guess them," he said. Last month's interest rate rise was part of that, he said, but he refused to speculate on whether he thought the Bank would raise interest rates further. Mr Cotis was full of praise for the Bank's interest rate policy, saying the monetary policy committee had been attentive to inflation risks and contained them in the face of a sharp rise in oil prices. Reviving the coal industry might be good for running-dog capitalists but is hardly the way of the future.The Paris-based rich nations club revised up its forecast for growth in Britain this year to 2.8% - in line with that of the Bank of England - from the 2.4% forecast it made in May. Slashing science and research and development budgets is hardly healthy for long-term innovation. The President's deregulation push could come with heavy costs to banking stability and the environment. But what of the longer-term costs? Few economists believe the cuts will create enough growth and tax revenues to ward off dangerous new deficit and debt levels. If income inequality is a central problem of our times, the tax cut is more likely to exacerbate rather than alleviate it.įor the near future, the cuts will likely spur economic growth. The Trump tax cut, his biggest economic initiative, helps some in the middle class for a limited period but is a bigger boon for the wealthy. What he will do with the North American free-trade agreement remains to be seen. Trump took his country out of the Trans-Pacific Partnership, which most economists regard as a foolhardy move. France elected a devotee of globalization in Emmanuel Macron while pushing back Marine Le Pen's nativism. Brexit isn't turning out to be the threat it was feared to be. But since that time the global economy has fared very well, while populism has been in retreat. At Davos last year, everyone was wary, fearing the international economic order was under siege. Trump was elected on a populist wave that, he said, would spark great change. But at the end of the day, what does that matter? What matters is that people are doing better where it counts: in their wallets.ĭesign has something to do with it. The media can squawk on and on, say Trump backers, about his shock talk, his boorish, unpresidential behaviour. When he took office, 46 per cent of Americans rated the economy as excellent or good in a Quinnipiac University poll. Trump deserves some credit for the good times, economists surveyed by The Wall Street Journal say. while dimming it for competitors such as Canada. ![]() The Republicans' king-size corporate tax cut is increasing investment attractiveness for the U.S. has announced a five-year, $30-billion (U.S.) investment plan. Trump's "America first" rants, in combination with his tax initiatives, are prompting companies to invest at home.
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