Tag: Economic

  • The Right’s Economic Populism Is Breaking Progressives’ Brains

    The Right’s Economic Populism Is Breaking Progressives’ Brains

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    But this dust-up is actually more interesting than that, because it involves a notable change in the wider political landscape: The rise of the populist right means there are more Republicans saying positive things about traditionally left positions on issues like trade and corporate power.

    Given that many of those populists have racial and social views that progressives find appalling, the question across Washington’s progressive organizations is: What’s the right way to think about working with them — or even just praising their break from GOP orthodoxy? So far, there’s little consensus on the question, and a high danger of vitriol in cases where it comes up, even when the cases don’t involve a lightning-rod like Carlson.

    To rewind a bit: The 1,200-word essay that kicked off the fireworks, by writers Lee Harris and Luke Goldstein, spent little time on the ousted Fox host’s incendiary racial and cultural statements, but instead lingered on his professed disdain for mainstream American elites. “Carlson’s insistent distrust of his powerful guests acts as a solvent to authority,” they wrote, noting his evolution from libertarian to “rejecting many of the free-market doctrines he’d previously espoused.

    Among other things, the piece cited his skepticism about free trade, his monologues against monopolistic Big Tech firms, and a viral segment about potential job losses from self-driving cars. It also noted that he attacked establishmentarian GOP leaders over their support for the Ukraine war.

    It’s safe to say that the immediate social media reaction did not give the pair points for originality.

    “Disgraceful and stupid,” tweeted Prospect alum Joshua Micah Marshall of Talking Points Memo. “Genuinely revolting,” added Zachary Carter, the journalist and John Maynard Keynes biographer. “The whitewashing of Tucker Carlson has begun,” said The Bulwark’s Will Saletan.

    Much of the blowback focused, appropriately, on the actual column, with a chorus of critics arguing quite convincingly that Harris and Goldstein had been snookered — that Carlson was a phony populist, part of a long American tradition of demagogues like George Wallace pretending to fight economic elites when they really want to just pick on some out-group of fellow citizens.

    Fair enough. But at least some of the criticism moved beyond engaging on the argument’s merits (or lack thereof) and instead cast doubt on the motivations of the authors themselves, suggesting something more sinister might be afoot.

    “How did these writers, who are either too dumb to notice Carlson’s virulently racist, sexist & anti-labor politics, or whose own politics are so vile that they don’t care, ever get hired by the Prospect in the first place?,” tweeted writer Kathleen Geier.

    A day later, amid the incoming flak, Prospect editor David Dayen issued a statement of his own, saying the piece had missed the mark. “It is my job as editor to make sure that whatever journalism or opinion we publish upholds our mission,” he wrote. “I don’t think we quite got there with this story.”

    The magazine left the original essay in place on its site, but soon published a scathing rebuttal by two other Prospect writers. The act of distancing, naturally, invited a whole new barrage of incoming criticism from people who accused Dayen of cowering before the online rage.

    “They should have gotten a raise,” Ruy Teixeira, the longtime progressive Washington think-tank figure, told me this week, referring to Harris and Goldstein. “Instead they brought the hammer down. They got denounced by their own editor, denounced by their own comrades on their staff … for what I actually thought was a pretty good article, the kind of article that wasn’t completely predictable and made you think.”

    Harris declined comment; Goldstein did not respond to a message. Dayen, too, declined to be quoted, except to say that the writers weren’t reprimanded for the story, that their status at the magazine is unchanged and they’ll keep writing about whatever interests them — including on places where the right and left overlap. The magazine has in fact done a fair amount of that with no particular blowback, including putting Donald Trump’s trade chief, Robert Lighthizer, on its cover for a largely laudatory feature in 2019.

    Teixeira, of course, is no stranger to making this sort of allegation about intellectual narrowness in the progressive ecosystem. Last year, he left the Center for American Progress and took a perch at the conservative American Enterprise Institute, saying that his politics hadn’t changed (he still refers to himself as a social democrat) but that he couldn’t stand the narrow focus on identity that he said permeated his former world.

    If you missed that saga, you can be forgiven. There’s a whole library’s worth of stories about the alienation of mostly older left-wing figures from post-collegiates in think tanks or advocacy groups, a divide that often involves disagreements over campus-style identity debates. (In one example, the Democratic Socialists of America canceled a speech by the celebrated left-wing academic Adolph Reed because some in the organization were upset that he’d argued that the left must emphasize class over race.)

    But that kind of incident feels different than what was going on last week.

    In fact, for progressives, the debates like the fracas over the Carlson column could, perversely, be seen as a side-effect of good news. Instead of a furious argument over internal dissent against political tactics, it was a furious argument over (alleged) new external support for policy positions.

    Even for folks who don’t buy the idea that the market-skeptical bits of Carlson’s schtick were at all genuine, it’s a situation that’s presenting itself more frequently as elements of the GOP move beyond Reaganite positions and instead talk up things like opposition to monopolies, support for living family wages or protectionist treatment of embattled stateside manufacturing.

    The challenge is that the rising GOP populists whose views on economic issues might appeal to progressives also often have social views that are way more extreme than the average Chamber of Commerce lifer. Sometimes, in fact, those social views may even be their motivator for their hostility to businesses. Witness the fulminations about “woke capitalism.”

    One example of those complications popped up in POLITICO Magazine’s recent profile of antitrust advocate Matt Stoller. Stoller drew sharp criticism for his seeming warmth toward Republican Sen. Josh Hawley, who fist-pumped insurrectionists and led Senate efforts to overturn the 2020 election — but has also lobbed grenades at monopolies. The stance has made Stoller a controversial figure on the left, even as his push for a crusade against monopoly has been embraced by the Biden administration.

    When we spoke this week, Stoller said it boils down to what politics is for.

    “They think politics is fundamentally a moral endeavor,” he said when I asked him about people who disdain the idea of treating someone like Hawley as an acceptable partner. “They’re not shy about letting me know what they think. … But I think that we have a lot more in common than a lot of people who are interested in politics assume. I have a different view of what politics is. For me, when I look at politics, I think about political economy as, like, the driving factor, and corporate power as the driving factor.”

    In a way, it’s an argument on the left that goes back to the popular front period of the 1930s, or further (in the Russian civil war, the Bolsheviks argued about making common cause with Islamic fighters from Central Asia, whose embrace of religion was distinctly non-Marxist).

    Michael Kazin, the historian of American populism, says there’s a long history of fuzziness about what constitutes left and right, which complicates the question of just who you’ll deem acceptable. Prominent opposition to big business in the Great Depression, he says, also included the likes of the antisemitic radio priest Charles Coughlin and the segregationist Louisiana Gov. Huey Long.

    Kazin, whose newest book is a history of the Democratic Party, says he’s sure Carlson is no fellow traveler — and also thinks coming up with a standard for how people like Hawley should be embraced or rejected might also be a little premature given the political realities: “Do you really think that Hawley’s going to support anything Biden wants? There’s a wish to have a broad anti-corporate alliance, but in the end the constituencies are very different.”

    David Duhalde, chair for the Democratic Socialists of America Fund, told me that one way to slice it is a function of where you sit. A Senator like Bernie Sanders working with the libertarian Utah Republican Mike Lee to curb presidential war powers? With 100 voters in the Senate, he doesn’t have much choice. A think tanker or essayist trying to be clever? Not so much. “I’m more sympathetic to what the pols are trying to do than to media figures trying to find nuance where there isn’t any,” he says.

    And for at least some people closer to the grassroots, the tendency to police against associating with ideological undesirables is a sign of a bigger sickness in elite circles. Amber A’Lee Frost, a writer and longtime fixture of the far-left Chapo Trap House podcast, once wrote about giving a talk about the importance of union organizing before an audience of tech workers. During the question and answer session afterwards, a woman approached the mic to ask what they should do if someone from the alt-right wanted to join their union.

    If that happens, Frost replied, it means you’ve won.

    “It was kind of a dead silence,” she told me this week, a sign that she’d said something deeply troubling.

    Frost, unsurprisingly, was dismissive of both sides of the Carlson contretemps — “right wing populism is largely a cynical brand of lip service from a bunch of professional hucksters” — but says she finds the one tic in the debates about potential left-right overlap disappointingly familiar.

    “They’re more invested in who’s on their side than what’s going on,” she said of the people who take umbrage at the idea that left politics might someday lure people with dubious records. “There’s this fear of contamination from the right, which betrays that these people are scared of the general population.”

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    #Rights #Economic #Populism #Breaking #Progressives #Brains
    ( With inputs from : www.politico.com )

  • UAE ranks 1st in Arab world, 20th globally for economic opportunities

    UAE ranks 1st in Arab world, 20th globally for economic opportunities

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    Abu Dhabi: The United Arab Emirates (UAE) has ranked first in the Arab world and 20th globally for economic opportunities offered to residents and investors.

    This came according to a report issued by the World Citizenship Report 2023 in ‘Economic Opportunity Rankings’ list of 128 countries, positioning it higher than Iceland, Malaysia, China, Qatar, Italy, Saudi Arabia, South Korea, Turkey and others.

    UAE has announced a number of initiatives to make it easier to do business such as introducing a new long-term visa regime, 100 per cent foreign ownership for foreigners, zero income tax, very low corporate income tax, and signing the Comprehensive Economic Partnership Agreement (CEPA) with a number of of countries to facilitate and facilitate trade with major economies like India, Israel, etc.

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    Globally, Singapore, the United States, Hong Kong, the Netherlands and Japan are among the top five countries with the best economic opportunities.

    Top 10 Arab countries for economic opportunities

    CountryScoreRank
    United Arab Emirates (UAE)75.020
    Qatar72.924
    Saudi Arabia70.030
    Bahrain65.440
    Kuwait65.141
    Oman63.646
    Turkey62.153
    Jordan60.961
    Iraq5963
    Palestinian territory59.963
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    #UAE #ranks #1st #Arab #world #20th #globally #economic #opportunities

    ( With inputs from www.siasat.com )

  • Agriculture is critical for Economic transformation, Food security and Nutrition: Aijaz Asad – Kashmir News

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    DC Srinagar inaugurates programmes under Kissan Sampark Abhiyan

    Agriculture is critical for Economic transformation, Food security and Nutrition: Aijaz Asad

    SRINAGAR APRIL 24 (KN) : With an objective of sensitizing farmers about new interventions approved under the Holistic Agriculture Development programme and benefits under other Centrally Sponsored Schemes, the Deputy Commissioner(DC) Srinagar, Mohammad Aijaz Asad Monday inaugurated programmes under Kissan Sampark Abhiyan here at Panchayat Halqas of Fakir Gujri as extensive orientation programme for the farmers.

    During the Kissan Sampark Abhiyan, capacity building/orientation programmes will be held for 3 days in all 21 Panchayats of Srinagar District as per notified schedule to sensitize the farmers and PRI representatives about the recent Government plan to implement 29 projects costing more than Rs 500 crore from this year to increase Agricultural production aimed at holistic development and promotion of Agriculture and allied sectors so that the farmers can get maximum profit and create employment opportunities from the Agriculture sector.

    Addressing the inaugural programme under Kissan Sampark Abhiyan, the Deputy Commissioner said that the Kissan Sampark Abhiyan is a prestigious programme of the Agriculture Production Department aimed at the overall welfare of farmers to educate farmers on various issues, including business management, entrepreneurship and Government schemes from April 24. He said the campaign will help farmers to increase their spending in the sector, ultimately leading to an improvement in their productivity and production.

    The DC further said with the help of PRIs focusing on farmers orientation and skilling programme will ensure that the meticulous plan reaches the fields and prepare our farmers to meet new challenges and explore new possibilities, besides making farming accessible and more profitable.

    On the occasion, the DC stressed the farmers and PRI representatives to actively participate in the programme to ensure the success of the ambitious program. He said resource persons will educate farmers through 48 videos, in addition the pamphlets have also been printed for better understanding of the Kissan Sampark Abhiyan so that farmers are benefited.

    The DC also informed that Kisan Sampark Abhiyan will include question and answer sessions for the farmers and will receive education about 19 centrally sponsored schemes that have been designed for their welfare and development in addition to the 29 projects.

    Later, Chief Agriculture Officer, Srinagar also spoke on the occasion and highlighted the objective of Kissan Sampark Abhiyan.

    Besides, members of Panchayat Raj Institutions, Chief Agriculture Officer, Srinagar, Mohammad Younis Chowdhary, Lead District Manager, other senior Officers of line Department and large number of Farmers were present in the inaugural function of the Kissan Sampark Abhiyan.(Kashmir News-KN)

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    #Agriculture #critical #Economic #transformation #Food #security #Nutrition #Aijaz #Asad #Kashmir #News

    ( With inputs from : kashmirnews.in )

  • Amazon, Google CEOs ‘hint’ at more layoffs amid economic meltdown

    Amazon, Google CEOs ‘hint’ at more layoffs amid economic meltdown

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    New Delhi: As tech layoffs continue unabated in 2023, Amazon and Google CEOs have hinted at more layoffs as the companies continue to evaluate business.

    In a letter to company shareholders, Amazon CEO Andy Jassy said that they reprioritised where to spend resources, which ultimately led to the hard decision to eliminate 27,000 corporate roles.

    “There are a number of other changes that we’ve made over the last several months to streamline our overall costs, and like most leadership teams, we’ll continue to evaluate what we’re seeing in our business and proceed adaptively,” the Amazon CEO wrote.

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    Jassy said that the company had to conduct a thorough analysis of each business and invention within the company to determine whether they had strong potential to generate revenue, operating income, free cash flow, and return on invested capital in the long run.

    Meanwhile, Pichai said that the company is “literally looking at every aspect of what we do” in an effort to re-engineer its cost base permanently.

    In a recent interview with Wall Street Journal, the Alphabet and Google CEO said: “We are trying to accomplish that across many different ways. We’re literally looking at every aspect of what we do, and as we said on our last earnings call, we’re thinking about how to re-engineer our cost base in a durable way.”

    “We are definitely being focused on creating durable savings. We are pleased with the progress, but there’s more work left to do,” he was quoted as saying.

    Google had in January laid off 12,000 employees in its first round of layoffs.

    “We’ve decided to reduce our workforce by approximately 12,000 roles. We’ve already sent a separate email to employees in the US who are affected. In other countries, this process will take longer due to local laws and practices,” Pichai had said in a statement.

    Amazon initially eliminated 18,000 positions in January, saying that as “we completed the second phase of our planning this month, it led us to these additional 9,000 role reductions”.

    In March, the e-commerce giant announced to lay off another 9,000 employees in Amazon Web Services (AWS), Twitch, advertising, and HR.

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    #Amazon #Google #CEOs #hint #layoffs #economic #meltdown

    ( With inputs from www.siasat.com )

  • India concerned about global economic outlook: Nirmala Sitharaman

    India concerned about global economic outlook: Nirmala Sitharaman

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    New Delhi: Union Finance Minister Nirmala Sitharaman said that despite this year’s projected growth rate of over 6 per cent for the Indian economy, it remains concerned about the global economic outlook and geopolitical environment.

    She made the remarks on Wednesday while attending the Development Committee meeting of the World Bank-IMF Spring Meeting 2023 in Washington D.C.

    Sitharaman mentioned that the World Bank should continue to work for its vision of a ‘World Free of Poverty’ and achieve its mission of ‘ending extreme poverty’ and ‘promoting shared prosperity’ in a manner that is inclusive, resilient and sustainable.

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    During her intervention, Sitharaman suggested that the global public goods should also be brought into the focus as the third goal.

    The Finance Minister further mentioned that the “Evolution of the World Bank Group – A Report to Governors” provides a historic opportunity to think collectively on the evolution of the World Bank Group.

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    ( With inputs from www.siasat.com )

  • Biden’s economic chief draws doubts over her Fed past

    Biden’s economic chief draws doubts over her Fed past

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     As a Fed governor, Brainard voted along with the rest of the board for the series of interest rate hikes that helped push two weak banks to failure in March. And though she has long been a vocal champion of strong bank oversight, financial reform advocates — and even some White House allies — are asking whether she will be tagged with any responsibility herself for the Fed’s failure to spot problems at Silicon Valley Bank and Signature Bank before they imploded in March.

    “All of the failure of supervision stuff for the last six to nine months implicates the Fed,” said a person close to the White House, who requested anonymity to speak freely about a sensitive personnel topic. “And all the investigations will focus on the Fed. There is just no way that can’t be awkward both for Lael and for the White House, even if there is nothing specific she did wrong.” 

    Behind the scenes, Brainard has been taking a lead role in the administration’s efforts to deal with the failed banks and reassure depositors that their money is safe, according to half a dozen senior administration officials and several others close to Brainard outside the White House. And in an extraordinary move driven by Brainard, the White House recently called on the Fed to undo many of the deregulatory steps that it took during the Trump administration — actions that Brainard had opposed while she was there.

    Her role in mapping out a policy to deal with the turmoil underscores how quickly the administration realized it was facing a potential crisis for the economy and Biden’s re-election chances.

    But some of the people inside and outside the administration say her association with the Fed — the main regulator of the nation’s banks — leading up to the meltdown of the two lenders is also limiting her ability to publicly challenge the central bank’s actions, given the tradition in which former Fed officials refrain from criticizing onetime colleagues. 

    “There is a social, institutional, and reputational cost to being viewed as violating Federal Reserve norms of clubbiness,” said Jeff Hauser, director of the Revolving Door Project. “Being perceived as `politicizing the Fed’ would likely cause members of the Fed club to view her as disloyal. It’s also likely that even as Brainard was perhaps the best dissenter ever at the Fed, that nonetheless she felt pressure to pull some punches.”

    The White House declined to make Brainard available for an interview.

    White House officials rejected the idea that she is shying away from criticizing the Fed. Instead, they argue that her dissents at the central bank speak for themselves and that when the crisis hit, Brainard simply dug deep into the work of helping organize the response while keeping Biden and new White House Chief of Staff Jeff Zients briefed on developments. 

    These people say that public communication was rightly limited to principal players including the president, Treasury Secretary Janet Yellen, FDIC Chair Martin Gruenberg and Fed Chair Jerome Powell. The new NEC director will eventually play a more visible role, they say.

    Brainard played the most critical part inside the White House in selling Biden on the need to designate SVB and Signature as risks to the financial system, opening them up to a federal rescue of their depositors, according to the people.

    Biden, bruised by the political blowback over Wall Street bailouts when he served as vice president, entered the March weekend of SVB’s collapse wary of anything that could be seen as rescuing the well-heeled tech executives and investors who made up much of SVB’s deposit base.

    It fell to Brainard to explain why such a big federal move — which could be taken as an implicit guarantee for all deposits of any failing FDIC-insured institution — was the only option to avoid a much longer and more brutal crisis.

    White House colleagues praise Brainard’s work under pressure the weekend SVB collapsed.

    “She knows how the Fed works, she knows how Treasury works and how the entire bank regulatory system works,” said Bharat Ramamurti, deputy NEC director and former senior staffer for Sen. Elizabeth Warren who was a candidate for the top NEC job before it went to Brainard.

    Ramamurti and other senior administration officials said Brainard quickly delegated her staff to assess market conditions and the likely impact of various possible solutions proposed by other agencies. Then she organized it all into concise briefings for Zients and Biden.

    “Communication was clear, tasks were well-assigned and it never felt like we were just spinning around,” Ramamurti said of the wild March weekend when White House, Fed, Treasury and FDIC officials conducted nearly nonstop video calls to get to a solution before markets opened in Asia.

    As for her previous role at the Fed, Brainard’s many defenders across the ideological spectrum say that not only did she not do anything wrong while serving as vice chair, but that she  strongly and publicly dissented from efforts to roll back regulations — often acting alone. She repeatedly warned that they could lead to just this kind of crisis.

    “Lael fought an incredible rearguard action against all the nonsense,” said MIT Professor Simon Johnson, a proponent of tougher banking rules. “There was no one else left in the room. I have no idea how she did it. But thank goodness she stuck it out.”

    Still, as the banking crisis saga moves further into the phase of hearings, blame-casting and calls for change, Brainard’s years at the Fed will likely get a closer look from Congress.

    Republicans say the collapse of SVB and Signature was the result of both mismanagement at the banks and the failure of regulators, primarily the Fed, rather than the result of all the Trump-era rule relaxation. They contend that Fed governors should have known that their interest rate hikes could topple weak banks.

    At a recent hearing, Sen. Tim Scott (R-S.C.), the ranking member on the Banking Committee and a likely 2024 GOP presidential contender, said the Fed “should have been keenly aware of the impact interest rate hikes would have on the value of securities, and it should have been actively working to ensure the bank and supervisors were hedging their bets and covering their risk accordingly.”

    In a letter to Powell and San Francisco Fed President Mary Daly, Scott wrote of the “apparent failure of SVB’s regulators, including the Federal Reserve, the primary federal regulator responsible for examining and supervising SVB, to ensure that the bank operated in a safe and sound manner.”

    The Fed itself is looking for answers.

    Michael Barr, the vice chair of supervision who is conducting an internal review of rules on bank capital and oversight issues, acknowledged that everyone who worked at the Fed in the years leading up to the bank failures would probably come under scrutiny.

    “We expect to be held accountable,” he told lawmakers last month.

    Some Democrats also ripped into Fed regulators both in California and Washington for failing to escalate warnings about SVB’s rapid deposit growth and ballooning balance sheet problems into earlier action.

    “It’s just a complex moment for Lael because most of the ballgame is around the Fed and most of the discussion now is about investigating potential supervisory failures,” the person close to the White House said. “It’s a tough spot for her.”

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    ( With inputs from : www.politico.com )

  • Fear of economic ‘lost decade’ hangs over world leaders in Washington

    Fear of economic ‘lost decade’ hangs over world leaders in Washington

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    “It’s going to be chaotic,” said Douglas Rediker, who represented the U.S. on the board of the International Monetary Fund from 2010 to 2012.

    Underscoring the budding fears, the World Bank last month warned of a looming “lost decade” for the economy that could sap momentum for fighting poverty and addressing climate change.

    The expanding list of economic uncertainties will pervade next week’s spring meetings of the IMF and the World Bank just a few blocks from the White House, setting up major challenges for leaders as they grapple with food and energy constraints, severe debt loads on developing countries and global warming.

    “There’s going to be a great deal of hand-wringing with the state of the global economy,” said Mark Sobel, U.S. chair at the Official Monetary and Financial Institutions Forum and a former Treasury Department official who served as U.S. representative to the IMF. “A lot of perplexing questions. A lot of fog.”

    Rediker described the mood as “disjointed.”

    “There are a lot of different threads going into these meetings and they’re not necessarily harmonized in one narrative,” said Rediker, managing partner at International Capital Strategies. “You’ve got them all happening at once at a time when there’s no particular leadership that is driving the agenda or the narrative in one direction or another.”

    U.S. officials, led by Treasury Secretary Janet Yellen, will try to project cautious optimism but will also face questions about the government’s response to last month’s regional bank failures and to what extent there is potential spillover in the global economy, especially as lenders tighten credit for businesses.

    “You don’t have any real motor of growth,” said Liliana Rojas-Suarez, a senior fellow at the Center for Global Development. “It’s not that it’s one region that is weaker than the other. Wherever you look, growth is really low, and so of course that affects everything else.”

    The U.S. economy is expected to grow by a tepid 0.4 percent this year, according to the Federal Reserve, before modestly accelerating to 1.2 percent in 2024. The Fed has driven the slowdown with the steepest interest rate hikes in four decades designed to tame inflation.

    “There’s a fundamental challenge for the U.S., which is first and foremost it’s coming there speaking about growth in its economy, how it’s doing relatively well compared to the other advanced economies,” said Josh Lipsky, senior director at the Atlantic Council’s GeoEconomics Center and a former adviser to the IMF.

    Growth prospects in Europe are uncertain as it also deals with a roiled banking industry. The European Union managed to weather the winter better than expected and skirt a recession thanks to a drop in energy prices that had reached eye-popping highs last summer.

    But core measures of inflation keep rising, and the ensuing fast-and-furious tightening of the money supply by the European Central Bank spells worries for the bloc’s outlook.

    The EU economy is expected to stagnate this year below 1 percentage point of growth, hitting the brakes after posting 3.5 percent last year — higher than both the U.S. and China.

    “I don’t think the IMF meetings are going to be in a hopeful mood — it’s going to be kind of depressing,” Rojas-Suarez said. “People are going to pull up good potential outcomes — like, the stock market is recovering, financial contagion seems to have moderated, the markets are relatively calm now. But at the same time, the sense of fragility in every corner that you turn is I think the mood that is going to be prevalent.”

    A major issue hovering over the meetings is the role of China, which just underwent a big government shakeup and is increasingly at odds with the U.S. over trade and technology. Questions include whether China should have a bigger say in the governance of international institutions commensurate with its economic power and whether it will help with efforts to ease the debt strain on developing countries, given that it’s such a big lender.

    “You get to a point where the very legitimacy of the institutions themselves gets challenged,” Rediker said.

    The World Trade Organization said Wednesday that global trade is expected to grow by 1.7 percent this year — a stronger outlook than it had in October. Still, it warned that the international economy is fragile, with commerce still recovering from Covid-19, continuing shockwaves from Russia’s invasion of Ukraine and high inflation.

    The World Bank — the international lender to developing countries — said last week that new policies are needed to boost productivity and accelerate investment to head off what could be a trying decade for the global economy.

    The IMF on Wednesday separately warned that the world could lose trillions of dollars of future economic output if it splits into competing geopolitical factions.

    The World Bank’s outgoing president, David Malpass, says the global economy is suffering from stagflation – meaning low growth with stubborn price inflation. He said at an Atlantic Council event Tuesday that the U.S. and China have rebounded but that there needs to be much more production and productivity to break out of stagflation.

    That comes as the world experiences what he describes as a “reversal in development,” with rising poverty and worsening literacy problems.

    “If you look at things today, the challenge is that there may not be progress,” Malpass said. “We need to avoid that lost decade.”

    Paola Tamma contributed to this report.

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    ( With inputs from : www.politico.com )

  • Jamie Dimon warns of new economic storms ahead

    Jamie Dimon warns of new economic storms ahead

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    But as consumers steadily chip away at pandemic-era savings, there is a growing risk that the economy will be undercut by a combination of higher interest rates, chillier credit conditions and persistent inflation, Dimon warned.

    What’s more, while the failures that caused the collapse of two large regional banks bear little resemblance to the 2008 financial crisis, they did provoke “lots of jitters in the market and will clearly cause some tightening of financial conditions as banks and other lenders become more conservative,” he wrote.

    Economic uncertainty has dogged the Biden administration and Washington policymakers for more than a year. The U.S.’ swift recovery from a brief recession brought on by Covid-19 was accompanied by rocketing inflation and escalating geopolitical tensions — as well as soaring fuel and food prices — following Russia’s invasion of Ukraine.

    Economists have vacillated in their projections on whether the U.S. will be able to navigate the coming months without entering a recession. That’s something Democrats in particular are eager to avoid in the run-up to what will be a bruising 2024 election cycle.

    For Dimon — the only CEO of a major bank still at the helm since the 2008 financial crisis — “2022 was not normal, economically speaking,” he wrote.

    Many of the challenges that made last year such an anomaly haven’t been resolved. An unpredictable geopolitical environment, coupled with rising energy and investment costs and ballooning government debt could contribute to more inflation and much higher interest rates.

    “I am often frustrated when people talk about today’s uncertainty as if it were any different from yesterday’s uncertainty. However, in this case, I believe it actually is,” he wrote.

    Dimon cautioned that predicting economic conditions is akin to forecasting the weather. It’s easy to do in the short run and much harder to do in the long term.

    Nevertheless, after the failure of Silicon Valley Bank, “the stock market is down and the market’s odds of a recession have increased,” he wrote.

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    ( With inputs from : www.politico.com )

  • Tech layoffs, economic slowdown hamper office space demand in India

    Tech layoffs, economic slowdown hamper office space demand in India

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    New Delhi: Global economic slowdown, tech layoffs and hybrid work have impacted gross leasing of office space in India, as flexible office space providers share reached almost at par with traditional tech companies in the first quarter of 2023, a report has shown.

    Leasing by flex space operators in Q1 2023 inched closer to that of technology companies for the first time ever, according to the report by Colliers India.

    Flex space occupiers leased 2.1 million square feet of space, accounting for 20 per cent, a little behind the technology sector’s share at 22 per cent.

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    Together, both the sectors accounted for nearly 42 per cent of the total leasing across top six cities.

    “Share of technology sector has declined steadily from 34 per cent in Q1 2022 to 22 per cent in Q1 2023, as corporates continue to focus on building in operational efficiencies through a hybrid model,” said Peush Jain, Managing Director, Office services, India, Colliers.

    While Hybrid working has impacted demand for conventional office spaces, it has also fuelled demand for flex spaces across top markets.

    “As long-term growth drivers for the tech sector remain strong in India, the technology sector will continue to drive office leasing activity through a mix of conventional and flex spaces,” Jain added.

    Bengaluru and Delhi-NCR were the most preferred locations for top flex operators for their portfolio expansion.

    Bengaluru accounted for nearly half of the total flex leasing during the quarter, followed by Delhi-NCR at 30 per cent share.

    Occupiers’ interest in flex spaces remain unabated as they continue to blend their conventional real estate portfolio in a bid to control costs while providing convenient ways to work for their employees.

    Large technology occupiers have also been leasing spaces in flex spaces due to their added benefits such as flexible lease terms, lower capex and modern workplace designs, said the report.

    This coupled with ongoing recessionary conditions and layoffs in the technology sector has led to a relative pushback in conventional leasing by these occupiers.

    The year 2023 has begun on a cautious note registering a 19 per cent YoY decline in leasing activity across top 6 cities at 10.1 million square feet during the first quarter.

    “Although office absorption is currently facing temporary downward pressures, leasing activity will likely pick up especially towards the latter part of the year, driven by strong growth fundamentals,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

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    ( With inputs from www.siasat.com )