Circumnetting the Mixed Global Economic News, Commentary

By February 25, 2011Economy

Mixed in the sense of could be better.

Reuters, “Fourth-quarter growth revised down to 2.8 percent“:

WASHINGTON (Reuters) – The economy grew slower than initially estimated in the fourth quarter as government investment contracted more sharply and consumer spending was less robust, a government report showed on Friday. Gross domestic product growth was revised down to an annualized rate of 2.8 percent, the Commerce Department said in its second estimate, from 3.2 percent. Economists had expected GDP growth, which measures total goods and services output within U.S. borders, to be revised up to a 3.3 percent pace.

The Commerce Department report is here.

Bloomberg, “Britain’s Economy Contracts More Than Estimated as BOE Divides on Remedies“:

Britain’s economy shrank more than initially estimated in the fourth quarter, complicating the task of the Bank of England as a split deepens among policy makers on whether to withdraw stimulus.

Gross domestic product fell 0.6 percent from the previous three months, compared with an initial estimate for a 0.5 percent drop, the Office for National Statistics said today in London. The statistics office said its “best estimate” for the impact of cold weather on the data remains 0.5 percent. The slump was led by construction and investment.

Bloomberg, “India Says Economy May Grow Up to 9.25% Amid Inflation Risk:

Feb. 25 (Bloomberg) — India’s economy may grow as much as 9.25 percent in the next financial year and officials need to tighten monetary and fiscal policies to slow inflation, the finance ministry said before next week’s budget statement.

Jeffrey Simpson, Toronto Globe and Mail, “Uncertainty over the U.S. means a shadow over Canada“:

[What] would happen if a major ratings agency downgraded U.S. debt, or a big lender began to diversify away from U.S. debt, or the U.S. dollar plunged? This is a country accustomed to making the rules, then breaking them with impunity. But what happens if that impunity is removed, and the very forces of globalization that the Americans have trumpeted turn against the chief trumpeter.In this circumstance, Canada could get sucked down by the world’s panicky reaction to U.S. mismanagement, in which case little would cushion our economy. Or Canada could be seen as a comparatively safe haven, with upward buying pressure on the Canadian dollar pushing it to levels beyond anything in our lifetimes.

To end on a positive note: Hurray for Grand Island, Nebraska!

From The Grand Island (Neb.) Independent, “Diversified economy helps G.I. weather economic downturn:

A diversified economy built upon agriculture, industry and trucking has helped to keep Grand Island growing despite a national recession, said Chris Kuehl, managing director of Kansas City, Mo.-based Armada Corporate Intelligence, which he co-founded with Keith Prather….The other highlight at the meeting was a number of awards recognizing companies that help Grand Island grow.

Nova-Tech was recognized for its “invaluable commitment to grow and create jobs in Grand Island.” Nova-Tech is a growing company that has relocated from the Central Nebraska Regional Airport Industrial Park to the Platte Valley Industrial Park.

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