OTTAWA — Canada’s economy is increasingly being caught in the tail winds of the downward global spiral, but some of the country’s problems are also homegrown.
The Bank of Canada says low interest policies that it and other central banks have put in place are adding another layer of risk to the already stressed global financial system.
The Canadian central bank says near record level interest rates that have been in place since the 2008-09 recession are taking their toll on insurance companies, pension funds.
ATHENS — Greece’s jobless rate hit a new record high of 27.6% in May, official national data showed on Thursday as the country staggers under austerity linked to its international bailout.
Data showed that those aged 15 to 24 remained the hardest-hit as the jobless rate for this age group registered 64.9%.
The tapering of stimulus by the U.S. Federal Reserve risks reigniting Europe’s debt crisis and pushing weak countries into a “debt-deflation spiral”, the International Monetary Fund has warned.
“The macro-economic environment continues to deteriorate. Recovery remains elusive,” said the IMF in its annual health check on the eurozone. “Growth has weakened further and unemployment is still rising. Mounting social and political tensions pose an increasing threat to reform.”
The Spanish banking system is in far worse shape than most realize because of unrealized losses related to Spain's imploded housing bubble. Various austerity measures and tax hikes to bail out French and German banks will greatly exacerbate this problem.
Please consider Spain Banks Face 43% Price Fall on Repossessed Homes
Victor Alberola Salcedo was shocked when the construction of a suburban Madrid train line was halted in 2010, terminating a contract for his 17-person company. It brought home the reality of the worst economy in his country’s more than 30 years of democracy.
Rick Newman submits:It sounds dreadful. After drifting down consistently since last fall, the unemployment rate has suddenly shot up again, from 9.7 percent in March to 9.9 percent in April. But don't despair: A rising unemployment rate is actually one of the best signs yet that the economy is bouncing back.
The labor force participation rate fell to 63.3 percent in March. This is the lowest level since 1979. Many are quick to attribute this falling rate due to workers leaving the labor force because they're so discouraged by the poor job market. But this is only a small part of the story.
BRUSSELS — Eurozone factory output continued its steep fall in autumn this year, underscoring the feeble domestic demand that risks prolonging the bloc’s recession.
Industrial production in the 17 countries sharing the euro fell 1.4% in October after falling sharply in September, the EU’s statistics office Eurostat said on Wednesday. That was much worse than the modest growth expected by economists in a Reuters poll.
I have a pretty cool interactive map below that will let you graph the unemployment rates based on parameters that you can choose.
First let's take a look at the current unemployment rate and a discussion of the parameters that define it.