News from around the Globe
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A summary of the economic news from around the globe found in the press today.
China
China has reported a budget deficit of 111bn yuan (£11.5bn) in 2008 in an attempt to boost the economy. Chinese government tax revenue rose by 19.5% in 2008 but this was offset by a 25.4% rise in government spending. The Ministry of Finance said that the large rise in spending was due to both the relief funds needed to cope with the Sichuan earthquake in May 2008 and the stimulus package to the economy in November.
With regards to the stimulus package the government has pledged almost $600bn to invest in housing, infrastructure and post earthquake reconstruction over the next two years.
Although the Chinese economy grew by 9%, it slowed to 6.8% in the final quarter.
Russia
Economic growth slowed in 2008 from 8.1% in 2007 to 5.6% as the boom in commodity prices came to an end. Russia was hard hit by the fall in the price of oil which ended 2008 under $50 a barrel having hit highs of $147 in July.
The news has pushed the rouble to new lows against the dollor-euro basket (the official currency measure). The Russian government has spent £141bn- a third of its currency reserves- to prop up the rouble.
Ireland
The number claiming unemployment benefit rose in January to the highest monthly level since records began in 1967. Figures showed 326,100 people made unemployment claims in January, up from 293,100 in December. Unemployment rose to 9.2% last month, the highest since January 1998. Ireland officially fell into recession in September 2008.
France
The French Prime Minster has unveiled a 26bn euros (£23.5bn) package to “revatalise” the French economy. The package includes 11bn euros to help businesses and 4bn euros tto improve infrastructre and public services.
The French government expects that the stimulus package will produce economic growth of 1.3%. The IMF has forecast a contraction in the French economy of 1.9% this year. Unemployment figures are expected to show an increase of 45,000 in the last month.
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