Economy

• Wednesday, April 22nd 2009 - 12:26 UTC

  Credit crunch losses in the range of 4 trillion USD warns IMF

  

  The International Monetary Fund (IMF) has warned credit crunch losses could reach 4 trillion US dollars, damaging the financial system for years to come. It further warns that even if urgent action is taken to clean up the banking system, the process will be “slow and painful”, delaying economic recovery. Banks may need 1.7 trillion in additional capital, the IMF forecasts.

• Wednesday, April 22nd 2009 - 00:41 UTC

  Negative inflation in UK; first time since March 1960

  

  The UK has experienced its first period of deflation in almost 50 years. Data from the Office for National Statistics (ONS) showed the Retail Prices Index (RPI) measure of inflation fell to minus 0.4% last month, down from 0% in February, the first negative reading since March 1960.

• Tuesday, April 21st 2009 - 12:58 UTC

  Creditor Brazil fights for bigger say in the IMF

  

  Brazil is expected to push very hard to have more say in the International Monetary Fund, reflecting the importance of emerging countries. To support that greater influence Brazil has pledged to advance up to 4.5 billion US dollars to the multilateral organization.

• Tuesday, April 21st 2009 - 10:38 UTC

  Colombia requests 10.4 billion from IMF flexible credit line

  

  Colombia became the third country to seek access to a new IMF credit line for strong performing countries, requesting 10.4 billion US dollars to bolster its economy in the face of the global recession.

• Tuesday, April 21st 2009 - 09:00 UTC

  Uruguay expects slower growth, higher budget deficit

  

  Uruguay’s Economy minister Alvaro García downgraded the country’s growth prospects for this year while doubling the budget deficit estimate from 1% to 2% of GDP. He made the announcements following Monday’s cabinet meeting when he admitted the Uruguayan economy will expand 2% in 2009, --down from 3%-- with a first negative quarter.

• Tuesday, April 21st 2009 - 08:45 UTC

  Paraguay’s cattle numbers increase 38% in 17 years; exports six fold

  

  Paraguay’s cattle rodeo increased 38.5% in the last 17 years according to the latest agriculture census. Even when the number of farms dropped 16.5% between 1991 and 2008, the number of head of cattle jumped from 7.626.617 to 10.561.894

• Tuesday, April 21st 2009 - 08:10 UTC

  Debt levels of US banks overshadow quarterly profits

  

  Concerns about debt levels at Bank of America have overshadowed its better than expected profits for the first three months of 2009. The US largest bank set aside 13.4 billion US dollars to cover credit losses, from the fourth quarter's 8.5 billion.

• Monday, April 20th 2009 - 06:41 UTC

  UK crucial budget battle anticipated for next Wednesday

  

  British Chancellor of the Exchequer Alistair Darling is attempting to boost confidence in the UK economy ahead of Wednesday's crucial Budget statement, despite claims the UK faces the longest recession since the Second World War.

• Saturday, April 18th 2009 - 08:03 UTC

  Mexico inaugurates new IMF flexible credit line with record 47 billion USD

  

  The International Monetary Fund on Friday approved a previously agreed 47 billion US dollars line of credit for Mexico, the first country to qualify for the new lending facility for strong-performing emerging economies. However Mexican authorities have stated they intend to treat the one-year arrangement as precautionary and do not intend to draw on the line.

• Saturday, April 18th 2009 - 05:32 UTC

  Top economist says UK economy “could have started a recovery”

  

  There are signs the British economy may already have started a recovery, according to economist David Miles. He is due to join the Bank of England's rate-setting body next June.