Global economy responds to US presidential election and other economics news to read
The markets rally as Donald Trump wins the US Presidential election. Image: REUTERS/Annabelle Gordon
- This weekly round-up brings you the latest stories from the world of economics.
- Top economy stories: Global economy responds to US presidential election; German exports fall; India's services industry rises.
1. Global economy responds to US presidential election
Following Donald Trump's election as the next president of the United States, markets domestically and internationally have responded. Here's a summary of just some of the takeaways from around the world:
- US shares hit record highs on Wall Street, reports the BBC, with banks performing especially well.
- The dollar rose by about 1.65% against a number of different currencies, including the pound, euro and Japanese yen.
- Bitcoin also hit an all-time high.
There are also various longer-term potential implications:
- Investors responded with bets that planned tax cuts and increased tariffs would push up inflation and reduce the speed of interest rate cuts.
- The non-partisan Committee for a Responsible Federal Budget forecasts that spending and tax pledges will increase US debt by $7.75 trillion through 2035.
- Borrowing for emerging markets that rely on dollar funding could also become more expensive, says Reuters.
- Wall Street execs are also expecting a more business-friendly regulatory approach.
2. German exports and industrial output fall
German exports and industrial output fell more than had been expected in September, compared to predictions in a Reuters poll. Exports dropped by 1.7% in September compared to the previous month, compared to a 1.4% forecast in the poll.
The data, from the federal statistics office, was released the day after the country's ruling coalition collapsed. Chancellor Olaf Scholz dismissed his finance minister, charting a course towards a snap election.
New US President Donald Trump said during his campaign he'd imposed a 10% tariff on imports from all countries. German exports to the US account for around 3.8% of Germany's GDP.
Industrial output also fell, dropping 2.5% compared to a forecast 1% decline in a Reuters poll.
3. News in brief: Stories on the economy from around the world
Growth in India's services industry picked up in October after dropping to a 10-month low in September.
Chinese exports grew at their fastest pace in more than two years last month, as factories pushed to send inventory to major markets, against the backdrop of potential US and European Union tariffs.
Growth in the Philippines slowed to its weakest pace in over a year in the third quarter, as severe weather impacted spending and farm output.
Eurozone business activity was steady in October, with a small improvement on September's slight decline. The bloc's services industry expanded, offsetting an ongoing, albeit stabilizing, decline in manufacturing.
Kenya's private sector saw a small improvement in conditions last month, with activity levels and employment returning to growth, according to an S&P Global survey.
New Zealand's jobless rate rose less than expected in the third quarter, with fewer people seeking work in a slow economy, Bloomberg reports.
4. More on the economy from our blog
Financial technology companies (fintechs) have shaken up the banking industry and played a significant role in boosting financial inclusion around the world. Investors increasingly want a clear path to profitability, though, writes McKinsey & Company's Max Fleototto.
Urgent climate finance is essential to meet the Paris Agreement goals and avoid climate catastrophe, urges Debbie Hillier of Mercy Corps. COP29 must establish a $1 trillion climate finance target to support vulnerable countries.
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Sonia Ben Jaafar
November 22, 2024
