Business This Week | The Economist

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In its latest perspectives, the OECD foresee that the Mondial economy will rise 5.8% this year, a sharp upward revision from its previous estimate. The successful roll-out of vaccines to much of the wealthy world and the huge stimulus package in the United States have helped improve the global outlook. GDP per person has already returned to pre-pandemic levels in some countries, such as America and South Korea, but the OECD believes it will take much of Europe another year to make up the difference, and another two to five years in Argentina, Mexico and South Africa. Real world production will still be $ 3 billion lower by the end of 2022 than it would have been without the crisis.

from Brazil statistics official said the country’s economy returned to its pre-pandemic size in the first quarter, when GDP rose 1.2% from the previous quarter, a faster pace than many economists expected. india The economy was also on track for recovery in the first quarter, boosted by manufacturing and government spending, but that was before an escalation in covid-19 infections that hit the country in April and May.

A study by the International Labor Organization found that 108 million workers and their families around the world are living on $ 3.20 or less per day compared to 2019, in purchasing power parity terms, lowering in-work poverty rates to those of 2015. The recovery will create 100 million people. net jobs this year, although total employment will remain below its pre-crisis level.

The euro area annual rate of inflation jumped to 2% in May, exceeding the European Central Bank’s target of “below but close to 2%” for the first time in more than two years. In Germany, it reached 2.4% (compared to 1.6% at the start of the year). The BCE, with the Federal Reserve, insists that the price spike is temporary and will eventually subside. Rising energy costs are a major factor behind inflationary pressures. Gasoline (gas) prices hit a seven-year high in America ahead of the Memorial Day holiday.

There are few signs of a drop in these prices in the near future. This week, Brent crude closed at over $ 70 a barrel for the first time in two years, after OPEC+ (which includes Russia) reported that demand for oil will increase later this year. The oil glut that kept prices low before the pandemic has diminished enough to encourage OPEC to increase production.

Declining cases of covid-19 and easing restrictions have made Americans more willing to travel over Memorial Day weekend. More than 1.9 million people have been screened American airports Friday and Monday, the busiest days. That was well up from over 300,000 a day last year, but down from 2.5 million in 2019.

A cyber attack to JBS, the world’s largest meat processor, has shut down operations in America and Australia. This is the third major cyberattack in recent weeks, after those on a pipeline in America and the Irish healthcare system. Russian criminal gangs are believed to be behind the three.

A long journey ahead

Transport to London, the city’s public transport authority, received its third emergency support program from the government since the start of the pandemic. The main reason for TFTHEThe pity of s is that it has turned away from subsidies in recent years to rely on passenger revenues. That revenue was worth around £ 5 billion ($ 7 billion) before covid-19, but has since declined. Government financing conditions will lead to tariff increases. But there is light at the end of the tunnel: the passengers return, albeit with hesitation.

Britain has started the long process of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after the 11 countries that make up the free trade Area agreed on its application. Japan in particular has supported Britain’s request to give more weight to the pact; America withdrew from a pioneering deal under the Trump administration.

A former banker of MM Warburg, one of Germany’s oldest private banks, has been convicted of aggravated tax evasion for his involvement in the “cum-ex” scandal, where stock transactions were made at high speed on or just before the day dividend payments were recorded, allowing participants to claim duplicate tax refunds. The anonymous banker is 70 years old. His conviction will probably be the first in a long series; there are still 1,000 suspects.

Turkey President Recep Tayyip Erdogan again questioned the independence of the country’s central bank with a further call for an interest rate cut in July or August.

Counting the pounds

The lockdowns boosted sales and profits to Bloomsbury for the year ending February 28. “The popularity of reading has been a ray of sunshine in an otherwise very bleak year,” the publisher’s chief executive said, as the company again raised its earnings expectations for 2021.

This article appeared in the The World This Week section of the print edition under the headline “Business This Week”

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