#GDP Update of #India #Canada #UnitedStates on 29th May 2015

#GDP Update of #India #Canada #UnitedStates on 29th May 2015

#GDPEstimates #Constantprices #Currentprices #IndiaEconomy #GrowthRate #CanadaEconomy #Quarter1 #EconomicAccounts #BEA #NewsRelease #Macroeconomics #JhunjhunwalasFinance

For more informative posts click :
https://www.linkedin.com/company/jhunjhunwalas

Gross Domestic Product update for 3rd Quarter of 2014 for United States Of America , Germany and Spain

Germany Gross Domestic Product for 3rd Quarter of 2014

Spain Gross Domestic Product for 3rd Quarter of 2014

United States of America Gross Domestic Product for 3rd Quarter of 2014 

#GDP #GrossDomesticProduct update for 3rd Quarter of 2014 for #UnitedStatesOfAmerica #Germany and #Spain .

#‎USDepartmentofCommerce‬ ‪#‎BureauofEconomicAnalysis‬ ‪#‎USEconomy‬ ‪#‎EconomicNews‬ ‪#‎USEconomicData‬ #GermanyEconomy #GermanyEconomicData #America #AmericaGDP #SpainEconomy #EconomicNews #SpainEconomicData #Europe #EconomicGrowth #GDPEstimate #InstitutoNacionaldeEstadistica #BolsadeMadrid

For more Informative post click :
https://www.linkedin.com/company/jhunjhunwalas

Gross Domestic Product of Italy, Germany and France for Third Quarter of 2014

Gross Domestic Product of France for 3rd Quarter of 2014

Gross Domestic Product of Germany for 3rd Quarter of 2014

Gross Domestic Product of Italy for 3rd Quarter of 2014

#GrossDomesticProduct #GDP Of #Italy #Germany and #France for Third Quarter of 2014.

‪GDP‬ ‪‬ of ‪Italy‬ for 3rd Quarter of 2014 decreased by -0.10% compared to 2nd Quarter of 2014 and decreased by -0.40% YoY.
‪GDP‬ ‬ of ‪‎Germany‬ for 3rd Quarter of 2014 grew by +0.10% compared to 2nd Quarter of 2014 and fell from 1.40% to1.20% YoY.
GDP of France for 3rd Quarter of 2014 grew by +0.30% compared to 2nd Quarter of 2014 and fell from 0.80% to 0.40% YoY.

‪#‎DAX30‬ = Benchmark Index of ‪#‎GermanyStockExchange‬ Performance as on 14th November 2014
#CAC40 Benchmark Index of #FranceStockExchange Performance as on 14th November 2014

YoY - Year on Year.
#FrenchEconomy #Eurozone #EconomyGrowth ‪#‎GermanEconomy‬ ‪#‎EconomicNews‬ ‪#‎GermanyEconomicData‬ ‪#‎Europe‬ ‪#‎EconomicGrowth‬ ‪‪#‎FrankfurtStockExchange‬ ‪#‎Euronext‬ ‎#talianEconomy‬ ‪#GermanEconomicIndicators #ItalyEconomicIndicators #FranceEconomicIndicator #‎ItalyEconomicData ‬ ‪#‎Rome‬ ‪ #‎Europe‬ ‪ #EuropeEconomicIndicators

For more Informative post click :
https://www.linkedin.com/company/jhunjhunwalas

India's Growth Metric

 India Growth Story:

‎India‬’s Gross Domestic Product : ‪#‎GDP‬ for Q4 2013-14 stood at 15.38 Lakh Crore increased by 4.61%. #IndiaGrossDomesticProduct #IndiaGrowthRates #yoy #YearOnYearGrowth #IndiaEconomicData #IndiaGDPrelease #GrossDomesticProduct

India’s Index of 8 Core Industries for May 2014 :  ‪#‎IndustrialProduction‬ of ‪#‎EightCoreIndustries‬ grew by 2.35% for May 2014 ‪#‎IndiaIndex8CoreIndustry‬ ‪#‎8CoreIndustryIndex‬ ‪#‎Coal‬ ‪#‎CrudeOil‬ ‪#‎NaturalGas‬ ‪#‎PetroleumProducts‬ ‪#‎Fertilizers‬ ‪#‎Steel‬ ‪#‎Cement‬ ‪#‎Electricity‬ ‪#‎IndiaIndustrialProduction‬ ‪#‎IndiaIndustrialIndex‬

India’s Index of Industrial Production, IIP, for the month of April 2014 stands at 172.1 with the growth of 3.4%. ‪#‎IndiaIIP‬ ‪#‎IndexofIndustrialProduction‬ ‪#‎IndiaIndustrialProduction‬ ‪#‎IndustrialIndex‬ ‪#‎IIP‬ ‪#‎IndiaIndustrialData‬, ‪#‎IndiaEconomicData‬

Iceland Central Bank holds Monetary Policy rates in the 4th week of May

21st May 2014

Iceland's central bank maintained its policy rates and cut its inflation forecast but raised the growth forecasts, saying "whether a change in the Bank's nominal interest rates is warranted in the near future will depend on the future path of inflation and inflation expectations."
    In March the Central Bank of Iceland, which has held its benchmark seven-day lending rate at 6.0 percent since November 2012, toned down earlier warnings of the need for tighter monetary policy due to stronger-than-expected economic growth.
     And while the central bank raised its growth forecast in its latest monetary bulletin, inflation and inflationary expectations have declined with the result that the bank's real effective interest rate has risen "markedly" and the previous slack in the monetary stance "has probably disappeared."
    Iceland's headline inflation rate fell to 2.3 percent in April and averaged 2.5 percent in the first quarter compared with a first quarter 2013 average of 4.3 percent and 6.4 percent in first quarter 2012. The central bank targets inflation of 2.5 percent.
    The Bank's effective real interest rate is about 3.0 percent, up just under one percentage point in the past year and above the rate in other industrialized countries. Financial markets have adjusted to this, the bank said, primarily because long-term inflation expectations are not yet firmly anchored.
    The central bank revised down its inflation forecast for 2014 to 2.5 percent from its February forecast of 2.7 percent, the 2015 forecast to 3.1 percent from 3.4 percent, but raised the 2016 forecast to 3.3 percent from 3.2 percent.
    The improved inflation outlook is mainly due to the stronger Icelandic krona and smaller rises in labour costs than previously expected.
    Short-term inflation expectations have also declined by about one percentage point with a March survey of business executives projecting inflation two years ahead at 3.5 percent, the lowest survey valued since autumn 2008. But long-term inflation expectations have been more persistent, the bank said, with the 10-year rate of about 4.0 percent, broadly unchanged since February and May 2013.
    The central bank expects economic slack to disappear by mid-2014, with inflation beginning to inch up as the year progresses, rising above 3.0 percent in the first half of 2015 when the effects of the appreciation of the krona will have tapered off and a positive output gap developing.
    The central bank revised upwards its growth forecast, with Gross Domestic Product now seen expanding by 3.7 percent this year, up from 2013's growth of 3.3 percent and the February forecast of 2.6 percent.
    GDP growth in 2015 is seen at 3.9 percent, up from 3.7 percent, while the 2016 growth forecast was revised down to 2.7 percent from 3.0 percent.
    Although the central bank assumes that wage agreements from late last year will apply to most of the labour market, it said there was still some unrest in the market, causing uncertainty.
    Higher economic growth could require increases in the bank's interest rates, but other measures, including tight fiscal policy, would help ease the need for tighter monetary policy and also help raise the national savings rate and lead to a more favorable current account balance, the bank said.
    The bank's monetary policy committee has recently discussed changes to its policy instruments to improve liquidity management and help prepare for the liberalization of capital controls and the sale of central bank assets.
    The bank has now decided to discontinue weekly sales of 28-day certificates of deposits, replacing them with two types of deposits that will be eligible as collateral for loan facilities. Each week, term deposits of one week will be offered at a fixed rate and each month the bank will offer term deposits of one month in an auction. The first auction will be June 4.
    Iceland is still trying to exit capital controls that were imposed in 2008 after the collapse of the country's three biggest banks led to a plunge in the krona currency and the worst recession in six decades.
    But last year the krona rose 10 percent against the U.S. dollar and this year it has continued to rise, though at a slower pace than last year.
    Today the krona was quoted at 112.6 to the dollar, up 2.1 percent since the start of the year, with the continued rise in foreign tourists and the external trade surplus helping shore up the currency. The central bank has taken a more active role since last May by intervening in foreign exchange markets.

Iceland holds rate, raises growth, cuts inflation forecasts - Central Bank News

Chile Central Bank holds Monetary Policy rates in the 3rd week of May

16th May 2014

Chile's central bank maintained its policy rate at 4.0 percent, as expected, and repeated that it "will consider the possibility of making additional cuts to the monetary policy rate in line with the evolution of domestic and external macroeconomic conditions and its implications on the inflationary outlook."
    The Central Bank of Chile, which in March cut its rate for the fourth time since October 2013 for a total reduction of 100 basis points, also repeated that indicators confirm the low dynamism of output and demand, in line with the bank's projections in the March policy report
    Chile's inflation rate in April topped forecasts and rose to 4.3 percent from 3.5 percent in March, but the bank said this rise, which was associated with the depreciation of the peso, was temporary but would still be monitored with "special attention."
    In its March forecast, the central bank revised upwards its forecast for inflation to end 2014 around 3.0 percent, with a temporary rise to between 3.5 and 4.0 percent. In 2013 inflation averaged 1.8 percent.
    The central bank, which targets inflation of 3.0 percent, plus/minus one percentage point, added medium-term inflation expectations remain around 3.0 percent.

    The central bank's May survey shows expectations for inflation to ease to 3.7 percent in December and then further to 3.0 percent in December.
    The latest information also confirms the outlook for developed economies to continue to recover while moderate growth continues in emerging markets.
    "With respect to commodity prices, the rebound of copper prices stand out," it added.
    Chile's Gross Domestic Product contracted by 0.1 percent in the fourth quarter from the third quarter for annual growth of 2.7 percent, down from 5.0 percent. The unemployment rate rose to 6.45 percent in March from 6.13 percent in February.
    The central bank forecast in March that Chile's GDP would expand between 3.0 and 4.0 percent this year, down from 4.1 percent in 2013. The International Monetary Fund forecasts 3.6 percent growth this year and 4.1 percent in 2015.
    The bank's monthly  survey shows expectations for Chile's GDP to expand by 3.2 percent this year, rising to 4.0 percent in 2015 and 2016.
    While the central bank was expected to maintain its policy rate this month, the monthly survey also shows that it is expected to cut the rate to 3.75 percent next month.

Chile holds rate, repeats will consider further rate cuts - Central Bank News

BOJ Bank of Japan holds policy in the second week of March

10th March 2014

 Japan's central bank maintained its goal of boosting the monetary base by an annual 60-70 trillion yen and voiced growing confidence about rising investment and industrial production though it also acknowledged that exports had "recently leveled of more or less."

 
   The Bank of Japan (BOJ), which embarked on an aggressive easing campaign in April 2013 to rid the country of 15 years of deflation, repeated that the economy "is expected to continue a moderate recovery as a trend, while it will be affected by the front-loaded increase and subsequent decline in demand prior to and after the consumption tax hike."
  

    Japan's government is raising the sales tax rate to 8 percent from 5 percent on April 1 to reduce its deficit and slow down the growing debt, and there is speculation that the BOJ will boost its stimulus to make up for any economic slowdown and to ensure that the bank meets its target of boosting inflation to 2 percent.

   
However, BOJ officials have often downplayed this speculation, arguing the economy can weather the impact of the tax rise. In 1997, when the sales tax was raised to 5 percent from 3 percent, the economy went into recession.

 
  Last month a key aid to Prime Minister Shinzo Abe told Reuters that the BOJ can wait until summer and evidence on how the economy is handling the impact of the tax rise before it decides whether to ease policy further, a sign that the government is not putting any pressure on the central bank to immediately increase its stimulus measures.


   Japan's Gross Domestic Product expanded by a lower-than-expected 0.2 percent in the fourth quarter from the third quarter for annual growth of 2.6 percent, still the third quarter in a row with accelerating growth.



    Japan's consumer prices have been rising since June following 12 consecutive months of deflation though inflation eased slightly to 1.4 percent in January from December's 1.6 percent.
 

   The BOJ repeated that inflation, excluding the impact of the tax rise, is likely to be around 1.25 percent for some time.
 

    Japan's exports fell to 5.252 trillion yen in January from December's 6.109 trillion, the lowest since January 2013.


    "Overseas economies - mainly advanced economies - are starting to recover, although a lackluster performance is still seen in part," the BOJ said, repeating last month's statement.
 

    The yen has been weakening since October 2012 - it was trading at 78 to the U.S. dollar on Oct. 1, 2012 - through 2013 when it ended at 105.28 to the dollar. This year it has firmed slightly but has remained above 100 to the dollar and was trading at 103.35 to the dollar earlier today.

    In April last year, the BOJ said it aimed to expand Japan's monetary base to 270 trillion yen by the end of 2014 from 138 trillion at the end of 2012. By the end of 2013, the monetary base was projected to rise to 200 and in a separate statement today the BOJ said it hit 202 trillion by the end of December 2013 and 205 trillion by the end of February

BOJ holds policy, stronger investment, industrial output - Central Bank News

Serbia Central Bank holds Interest rates as cautious monetary policy warranted - Central Bank News

6th March 2014

Serbia's central bank maintained its policy rate at 9.5 percent, noting that inflation had now returned to the bank's target range in January but adding that caution was warranted in monetary policy due to "heightened volatility in international financial markets" that is dampening investor sentiment and may negatively influence capital flows.
    The Bank of Serbia (NBS), which intervened on foreign exchange markets on Monday after repeated interventions last month to support the dinar currency, also stressed the need for caution last month, saying the country was still in need for external financing despite rising exports.
    "By keeping the key policy rate on hold, the NBS aims to support price and financial stability in the medium term," the central bank said, adding that consistent implementation of fiscal consolidation measures should diminish the country's exposure to external risks and strained liquidity in global financial markets in connection with reduced asset purchases by the U.S. Federal Reserve.
     Further steps in reducing the country's foreign exposure and maintain economic stability and growth would come from the expected conclusion of an agreement with the International Monetary Fund, the central bank said.
    Talks between the IMF and Serbia's government started last month on a new agreement but the government needs to narrow its deficit further and save some 400 million euros.

    Serbia's inflation rate rose to 3.1 percent in January from 2.2 percent in December, returning to the central bank's target range of 2.5 percent to 5.5 percent, around a 4.0 percent midpoint.
   The central bank cut its rate by a net 175 basis points in 2013 as inflation slowed to a low of 1.6 percent in November. The bank expects inflation to rise in coming months due to higher administered prices and the one-off impact of higher value-added-tax on some goods in January.
    Serbia's economy pulled out of recession in 2011 and 2012, with Gross Domestic Product expanding by an annual rate of 2.6 percent in the fourth quarter of 2013.
    The bank, which has forecast growth of 1.5 percent in 2014, said manufacturing was growing in the beginning of this year, laying the foundation for growth this year that will be helped by a recovery of the euro area and the start of negotiations on accession to the European Union (EU)

Serbia holds rate as cautious monetary policy warranted - Central Bank News

Uganda Central Bank holds Interest rates in the first week of March

4th March 2014

Uganda's central bank maintained its Central Bank Rate (CBR) at a neutral level of 11.5 percent but said there were potential risks of stronger inflationary pressures from currency depreciation, stronger domestic demand and higher food prices while a possible decline in foreign aid was posing a source of uncertainty for the country's balance of payments and economy.
    The Bank of Uganda  (BOU), which cut its CBR rate by 50 basis points in 2013, cut its forecast for core inflation to 4-5 percent over the next few months, down from February's forecast of 5-6 percent in the first half of 2014, but added that inflation was then expected to rise to between 5.5 percent and 6.5 percent over the next 12 months.
    Uganda's headline inflation rate eased to 6.7 percent in February from January's 6.9 percent while core inflation, which excludes food, energy and utilities, fell to 3.7 percent in February from 4.6 percent. The BOU attributed the lower inflation rate to a 7.0 percent appreciation of the shilling in the 12 months to 2014.
    After strengthening last year, Uganda's shilling was hit last week after foreign aid donors, including the World Bank, withheld or threatened to withhold aid in reaction to new legislation that toughens the punishment for homosexuals.
    The drop in the shilling started last Wednesday with dealers saying the central bank had intervened and sold dollars to stop the decline. On Thursday the central bank continued to support the shilling and then on Friday the central bank confirmed it was selling foreign currency.
    Late on Thursday the World Bank said it was postponing a US$ 90 million loan for Uganda's health system and Sweden's finance minster then on Friday said the law would make it hard to continue funding projects. Denmark and Norway have already withheld aid while the United States, the country's biggest donor, is reviewing its aid for health projects.
    The shilling fell to 2,534.9 to the U.S. dollar last Friday, down 2.8 percent from the previous week's close, but rose slightly this week to trade around 2,523 today, largely unchanged from 2,525 end-2013.
    Despite uncertainty surrounding foreign aid, the central bank said it expects Uganda's economy to be "relatively buoyant" in the 2013/14 fiscal year, which began on July 1, due to fiscal stimulus, a strengthening global environment, strong inflows of foreign direct investment and household consumption.
    "However, there are risks to this growth outlook emanating from weak bank credit growth," the BOU said.
    Last month the BOU forecast growth in 2013/14 of 6.0 to 6.5 percent and said banks' credit to households had risen by 38 percent in December.
    Uganda's Gross Domestic Product contracted by 0.6 percent in the third calendar quarter from the second quarter for annual growth of 2.2 percent, down from growth of 5.8 percent in the second quarter.

Uganda holds rate, foreign aid drop source of uncertainty - Central Bank News

Hungary Central Bank cuts Interest rates by 15 bps in the third week of February

18th February 2014

Hungary's central bank cut its base rate by another 15 basis points to 2.70 percent, its 19th cut in a row, but signaled that it may call a halt to further cuts by saying it would first decide on further moves following a review of the economic outlook in next month's economic forecast.
    The National Bank of Hungary, which has cut rates by 430 basis points since embarking on an easing cycle in August 2012, noted a deterioration in investors' view of Hungary and other emerging markets during the recent volatility in global financial markets, with the country's bond yields rising and higher volatility in the forint's exchange rate.
    "In the council's judgement, a cautious approach to policy is warranted due to uncertainty related to the global financial environment," the central bank said.
    However, the central bank also said Hungary's position was stronger than other emerging market economies, pointing to a decline in its external debt and a surplus in the current account that has reduced the country's reliance on foreign investors.
    But the central bank acknowledged that room for manoeuvre in monetary policy was influenced by investors' perception along with how well inflation was approaching its 3.0 percent target.

    "The Monetary Council will decide on the need and possibility for continuing the easing cycle after a comprehensive assessment of the macroeconomic outlook and developments in perceptions of the risks about the economy in view of the baseline projection and alternative scenarios of the March forecast," the central bank said.
     Hungary's headline inflation rate fell to zero in January from 0.9 percent in December while the central bank's own gauge of underlying inflation showed a rise in core inflation to 1.6 percent in January from 1.1 percent in December.
    The drop in inflation was due to a moderation of fuel prices and the central bank said its own inflation gauge indicated moderate inflationary pressures due to weak domestic demand and low external inflation, helping anchor inflation expectations.
   "Domestic real economic factors are expected to continue to have a disinflationary impact, although to a declining extent, as activity rises further," the central bank said. The bank has said it expects inflation to move back toward its 3.0 percent target by the second quarter of 2015.
    Economic growth in Hungary is likely to continue to strengthen this year and next and while employment is rising, the central bank said unemployment still exceeds the long-term level and there is unused capacity so inflationary pressures are likely to remain subdued over the medium term.
    Hungary's Gross Domestic Product expanded by a higher-than-expected 0.6 percent in the fourth quarter from the third quarter for annual growth of 2.7 percent, up from 1.8 percent, and the central bank said growth should pick up further in the quarters ahead, helped by higher corporate investment.
    But growth in real incomes will be partly offset by continued reduction in debt that was accumulated in the years before the financial crises.
    From August 2012 the central bank cut rates in 25-basis point increments until August 2013 when it reduced the pace of rate cuts to 20 basis points following an large outflow of capital from emerging markets, including Hungary. The central bank continued cutting rates in 20-basis points increments until last month when it reduced this to 15 basis points, as this month.
    Hungary's forint currency has been depreciating against the euro since mid-2012 and has continued to decline this year. The forint was trading at 310.33 to the euro today, down 4.3 percent since the beginning of the year.

Hungary cuts rate by 15 bps, to review stance in March - Central Bank News

South Korea Central Bank holds Interest rates in the second week of February

12th February 2014

South Korea's central bank maintained its base rate at 2.50 percent, as expected, saying the economic recovery is continuing and inflation will remain low for the being, due to stable international commodity prices, but eventually rise.
    The Bank of Korea (BOK), which cut its rate by 25 basis points in 2013, also said it expects the global economy to sustain its "modest" recovery going forward but it could be affected by changes in global financial market conditions from the U.S. Federal Reserve's tapering of quantitative easing and weaker growth in some emerging markets.
    Some of the indicators related to domestic demand in Korea have recently slumped, the BOK said, but exports continue to rise, sustaining the overall economic expansion.
    Korea's Gross Domestic Product expanded by an annual 3.9 percent in the fourth quarter of last year, up from 3.3 percent in the third quarter, for average 2013 growth of 2.8 percent, up from 2.0 percent in 2012, and the strongest growth in two years.
    "The Committee expects that the domestic economy will maintain a negative output gap for the time being going forward, although it forecasts that the gap will gradually narrow," the BOK said.

    Last month the BOK forecast that Korea's economy would expand by 3.8 percent in 2014 and then accelerate to 4.0 percent in 2015.
    Korea's inflation rate averaged 1.3 percent in 2013, far below the BOK's target range of 2.5-3.5 percent, but in its latest forecast the bank expects inflation this year to rise to 2.3 percent and then to 2.8 percent in 2015.
    In the first half  of this year inflation is expected to remain below the bank's target range but then rise in the second half.
    In January, Korea's headline inflation rate was steady at 1.1 percent from December.
    The BOK said Korean stock prices had recently rebounded and the won appreciated, reversing a depreciation of the won and lower stock prices due to the instability of international financial markets and outflows of foreigners' stock investment funds.
    Against the U.S. dollar, the won depreciated in the first half of 2013 before rebounding in the second half to end the year only 0.7 percent firmer. Since the start of the year, the won has eased 0.6 percent, trading at 1062.4 to the dollar today.
    Against the Japanese yen, the won has been rising since October 2011 when it hit a low of 15.6 and declined to 10 to the yen around the end of 2013, a rise of almost 36 percent. Since the start of this year, the won has eased slightly but was still trading at 10.36 today.
    Last month the governor of the BOK, Kim Choongsoo said the rapid depreciation of the yen against the won over the last year has hurt the South Korean industries that compete directly with Japan - such as steel, autos, machinery and electrical appliances - and any further depreciation of the yen would cause widespread pain to South Korea's exporters.
     However, he also ruled out a competitive devaluation of the won


South Korea holds rate, recovery continues, inflation low - Central Bank News

South Korea Central Bank holds Interest rate steady, sees recovery, higher inflation

8th January 2014

South Korea's central bank held its base rate steady at 2.5 percent, as expected, and maintained its recent view that the country's economic recovery is continuing in line with its growth trend while exports and consumption have continued to improve.
    The Bank of Korea (BOK), which cut its rate by 25 basis points in 2013, also said it expects inflation to gradually rise but remain low for the time being, largely due to stable international agricultural prices.
    Korea's headline inflation rate eased to 1.1 percent in December from 1.2 percent in November for an average rate of 1.3 percent for 2013, down from 2.2 percent in 2012.
    The BOK targets annual inflation of 2.5-3.5 percent and in October forecast 2013 inflation of 1.2 percent and 2.5 percent inflation in 2014.
     Last month the BOK said it expects inflation to rise in 2014 as the domestic economy improves.
    Korea's Gross Domestic Product rose by 1.1 percent in the third quarter from the second quarter for annual growth of 3.3 percent, up from a 2.3 percent growth rate in the second quarter and 1.5 percent in the first quarter.

    "The Committee expects that the domestic economy will maintain a negative output gap for the time being going forward, although it forecasts that the gap will gradually narrow," the BOK said.
    The central bank said the global economy will sustain its modest recovery going forward though it added that this could be affected by changes in global financial markets from the U.S. Federal Reserve's tapering of quantitative easing.
     "Looking ahead, while paying close attention to developments in and the influences of external risk factors arising from shifts in major countries' monetary policies, the Committee will conduct monetary policy so as to keep consumer price inflation within the inflation target range over a medium-term horizon while supporting the continued recovery of economic growth," the BOK said.


Korea holds rate steady, sees recovery, higher inflation - Central Bank News

GDP Gross Domestic Product ............ simplified 

Definition GDP represents the total value of the country's production during the period and consists of the purchases of domestically-produced goods and services by individuals, businesses, foreigners and government entities. Data are available in nominal and real (inflation-adjusted) dollars, as well as in index form. Economists and market players always monitor the real growth rates generated by the GDP quantity index or the real dollar value. The quantity index measures inflation-adjusted activity, but we are more accustomed to looking at dollar values. Individuals purchase personal consumption expenditures -- durable goods (such as furniture and cars), nondurable goods (such as clothing and food) and services (such as banking, education and transportation). Private housing purchases are classified as residential investment. Businesses invest in nonresidential structures, durable equipment and computer software. Inventories at all stages of production are counted as investment. Only inventory changes, not levels, are added to GDP. Net exports equal the sum of exports less imports. Exports are the purchases by foreigners of goods and services produced in the United States. Imports represent domestic purchases of foreign-produced goods and services and must be deducted from the calculation of GDP. Government purchases of goods and services are the compensation of government employees and purchases from businesses and abroad. Data show the portion attributed to consumption and investment. Government outlays for transfer payments or interest payments are not included in GDP. The GDP price index is a comprehensive indicator of inflation. It is typically lower than the consumer price index because investment goods (which are in the GDP price index but not the CPI) tend have lower rates of inflation than consumer goods and services.

Why Investors Care GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Investors in the stock market like to see healthy economic growth because robust business activity translates to higher corporate profits. Bond investors are more highly sensitive to inflation and robust economic activity could potentially pave the road to inflation. By tracking economic data such as GDP, investors will know what the economic backdrop is for these markets and their portfolios. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio. Importance Gross domestic product is the country's most comprehensive economic scorecard. Interpretation When gross domestic product expands more (less) rapidly that its potential, bond prices fall (rise). Healthy GDP growth usually translates into strong corporate earnings, which bode well for the stock market. The four major categories of GDP -- personal consumption expenditures, investment, net exports and government -- all reveal important information about the economy and should be monitored separately. One can thus determine the strengths and weaknesses of the economy in order to assess alternatives and make appropriate financial investment decisions. Economists and financial market participants monitor final sales -- GDP less the change in business inventories. When final sales are growing faster than inventories, this points to increases in production in months ahead. Conversely, when final sales are growing more slowly than inventories, they signal a slowdown in production. It is useful to distinguish between private demand versus growth in government expenditures. Market players discount growth in the government sector because it depends on fiscal policy rather than economic conditions. Market participants view increased expenditures on investment favorably because they expand the productive capacity of the country. This means that we can produce more without inciting inflationary pressures. Net exports are a drag on total GDP because the United States regularly imports more than it exports, that is, net exports are in deficit. When the net export deficit becomes less negative, it adds to growth because a smaller amount is subtracted from GDP. When the deficit widens, it subtracts even more from GDP. Gross domestic product is subject to some quarterly volatility, so it is appropriate to follow year-over-year percent changes, to smooth out this variation.

Frequency Quarterly

Source for US or American Economy is available with  Bureau of Economic Analysis (BEA), U.S. Department of Commerce. for India : CSO : http://mospi.nic.in/Mospi_New/site/home.aspx

Availability Usually during the fourth week of the month.

Coverage Data are for the prior quarter. Data released in April are for the first quarter. Each quarter's data are revised in each of the following two months after the initial release.

Revisions Yes.

Econoday Economic Report: GDP

Ghana Central Bank holds rate, inflation set to return to planned path

Ghana's central bank held its policy rate steady at 16.0 percent, saying inflation is expected to return to the forecast path by the first quarter of 2014 and prospects for growth had improved.
    The Bank of Ghana, which raised its rates by 100 basis points at its last meeting in May in response to rising inflation, said inflation is likely to be close to the bank's upper band and the upside risks include potential pass-through of further petroleum price adjustments, possible adjustment of utility tariffs and pressures from the impending public sector wage settlement.

    These pressures, however, could be moderated by the tight monetary policy stance, ongoing fiscal consolidation and seasonal factors from the oncoming harvest season.
    "However, subject to the rate and timing of the adjustment in utility tariffs, the forecast could return to central path by the first quarter of 2014," the central bank said. The bank has a year-end target of 9.0 percent inflation, plus/minus 2 percentage points.
    Ghana's inflation rose to 11.2 percent in June, the highest since April 2010, from 10.9 percent in May, largely due to petroleum price adjustments, demand pressures and seasonal factors, the bank said. The reconstituted CPI basket put inflation at 11.4 percent from 10.6 percent in March, it added.
    The central bank said its composite index of economic activity (CIEA) indicated a marginal pickup during the second quarter with the index showing growth of 3.4 percent compared with a 0.6 percent contraction in March.
    The consumer confidence index also improved in June from April while business sentiment softened.

    In the first quarter, Ghana's Gross Domestic Product contracted 3.1 percent from the previous quarer, for annual growth of 6.7 percent, up from 6.0 percent.
    Ghana's finance ministry has forecast growth of 8 percent this year.
    Preliminary data for the first half show that government revenue and expenditure were below their targets, with the budget deficit 4.5 percent of Gross Domestic Product on a cash basis, within target.

    Ghana's gross international reserves fell by US$436.4 million to $4.9 billion from $5.3 billion end-December, enough to cover 2.7 months of imports.

    Ghana's cedi currency depreciated by 3.4 percent against the U.S. dollar from January to June, a slower rate than a decline of 17.2 percent in the same period in 2012, the bank said

Ghana holds rate, inflation set to return to planned path - Central Bank News

for more details log on to Bank of Ghana website : http://www.bog.gov.gh/ 

Russia Central Bank holds rate

Russia's central bank maintained its policy rate at 8.25 percent, as expected, along with its outlook, saying that "the risks of further economic slowdown remain given the weak investment activity and the sluggish recovery in external demand."
    The Bank of Russia, which last cut rates in September 2012, added that it would "continue to monitor inflation risks and the downside risks to economic growth," indicating that a rate cut is not immediate.
   Although economic growth remains low, the bank said the fall in the growth rates of some indicators in May was partly due to calendar effects and "labour market conditions and credit dynamics are still providing support to domestic demand."
    While economists had expected the Bank of Russia to hold rates steady, the outcome of the meeting was highly anticipated because it was the first board meeting chaired by the new governor, Elvira Nabiullina, former aide to Russian President Vladimir Putin. Nabiullina took over from Sergei Ignatyev who retired after 11 years as governor.
    While the central bank's economic outlook was a replica of its June statement, it dropped the warning that inflationary expectations could be affected if inflation remains high for a prolonged period.

    Another change during Nabiullina's first meeting was that the board now provides an exact date for its next meeting compared with a more vague indication in the past, and added a new instrument to its tool box for providing funds to banks.
    Beginning next week, the Bank of Russia will provide banks with funds, secured by non-marketable assets and guarantees, for 12 months with a floating interest rate at 5.75 percent. By reducing the market collateral held by the central bank, this should improve the efficiency of the interbank market.
    "The conduct of the longer-term operations with floating rate will contribute to intensifying the monetary policy signal as the changes in interest rates will be transmitted to the change of the cost of funds, previously provided by the Bank of Russia to credit institutions," the central bank said.
    Russia's inflation rate fell to 6.9 percent in June from 7.4 percent in May, but was still above the central bank's target range of 5-6 percent.
    As of July 8, inflation was estimated a 6.6 percent, the bank said, adding that core inflation in June was 5.8 percent.
    The central bank repeated that it still expects inflation to return to its target range in the second half of the year, barring any adverse food price shocks.
    Russia's economy shrunk in the first quarter with the Gross Domestic Product falling 0.07 percent from the fourth quarter for annual growth of only 1.6 percent, down from 2.1 percent in the fourth quarter and the fifth quarter with a declining growth rate.
    In June, Nabiullina said in an interview with Reuters that interest rats could be cut in the third quarter of this year but only if inflation is clearly falling.

Russia holds rate, repeats risks of economic slowdown - Central Bank News

for more details log on to Bank of Russia website : http://www.cbr.ru/eng/ 

Brazil Central Bank raises rate for third time this year to 8.50 %

Brazil's central bank raised its benchmark Selic rate by another 50 basis points to 8.50 percent, as expected, to help bring inflation under control.
    It is the third consecutive rate rise by the Central Bank of Brazil, which has now raised rates by a total of 125 basis points this year. Last year the central bank cut rates by 375 basis points as economic growth fell.
    The decision by the central bank's monetary committee, known as Copom, was unanimous and the decision was not accompanied by a bias toward its next move.
    "The Committee considers that this decision will contribute to bringing inflation toward a decline and ensure that this trend will continue next year,"the central bank said in a brief statement.
    Brazil's inflation rate rose to 6.7 percent in June from 6.5 percent, above the central bank's target of 4.5 percent, plus/minus two percentage points.
    The central bank has forecast inflation of 5.7 percent this year and 5.3 percent in 2014.
    Brazil's Gross Domestic Product rose by only 0.6 percent in the first quarter from the fourth quarter for annual growth of 1.9 percent, up from 1.4 percent in the previous quarter.

Brazil raises rate for third time this year to 8.50 % - Central Bank News

for more details log on to Central Bank of Brazil website : http://www.bcb.gov.br/?english 

Australia holds rate, sees "some scope" for cut if needed - Central Bank News

Australia's central bank held its cash rate steady at 2.75 percent but said the outlook for inflation "may provide some scope for further easing, should that be required to support demand."
    The rate guidance by The Reserve Bank of Australia (RBA) compares with its statement from June when it saw "scope for further easing," indicating that it now sees slightly less room to cut rates as it added the word "some."
    The RBA, which has cut its policy rate by 25 basis points this year and by a total of 200 points since October 2011, noted that the Australian dollar had depreciated by around 10 percent since early April, but added that it remains "at a high level" and it is "possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy."
    The Australian dollar rose above parity to the U.S. dollar at the start of 2011 and remained there most of the time until the RBA's rate cut in early May when it started dropping. Since the start of this year the Australian dollar has depreciated by some 11 percent to the U.S. dollar, trading at 0.92 today.
    The RBA said the easier financial conditions that are now in place "will contribute to a strengthening of growth over time," with signs of increased demand for finance by households though the pace of borrowing had remained relatively subdued.
    Economic growth in Australia has been below trend and the RBA expects this to continue in the near term as the economy adjusts to lower levels of mining investment.
    Australia's Gross Domestic Product rose by 0.6 percent in the first quarter from the previous quarter, for a 2.5 percent annual rise, down from 3.1 percent in the fourth quarter.
    The inflation rate rose slightly to 2.5 percent in the first quarter from 2.2 percent in the previous quarter but the RBA said it was still consistent with its 2-3 percent target "an is expected to remain so over the next one to two years, notwithstanding the effects of the recent depreciation of the exchange rate."
    The RBA added that financial conditions remain very accommodative globally but the "reassessment by the market of the outlook for monetary policy in the United States has seen a noticeable rise in sovereign bond yields from exceptionally low levels.

Australia holds rate, sees "some scope" for cut if needed - Central Bank News

for more details log on to Reserve Bank of Australia website : http://www.rba.gov.au/

Israel Central Bank News

Israel's central bank held its policy rate steady at 1.25 percent, saying inflation is expected to remain around the center of its target range in the coming year, that recent rate cuts were a response to slower economic growth, home prices have moderated and the upward pressure on the shekel should ease as the U.S. Federal Reserve plans to remove its policy accommodation in the future.
    The Bank of Israel (BOI), which cut rates twice in May to weaken the shekel currency, said it would keep a close eye on asset markets, including the housing market, and continue to monitor the impact of its recent steps, "particularly in light of the continuing uncertainty in the global economy," and would "act as necessary in the future."
    It was the final decision by the BOI under present Governor Stanley Fischer, who is stepping down at the end of this month and being replaced by Jacob Frenkel, BOI governor from 1991 to 2000.
    The Israeli shekel has come under upward pressure since mid-2012 as investors sought higher yields due to ultra-low interest rates in advanced economies, along with the start of natural gas production. 
     This year the shekel has risen by 2.4 percent against the U.S. dollar, trading around 3.64 per dollar today, but down from a high of 3.55 in early May following two BOI rate cuts the same month and a decision to intervene foreign exchange markets.

    The BOI said the appreciation of the shekel against the dollar was in contrast to the global trend, taking place against the background of sales of domestic companies to foreign investors, a current account surplus in the first quarter and "extensive foreign exchange sales by nonresidents."
     The Federal Reserve's announcement last week that it would start to taper its asset purchases later this year, assuming the economy continues to improve, has hit global financial markets hard with funds flowing out of many emerging markets, global stocks and bonds.
    Bond yields in the U.S. have jumped and the BOI said that if this "increase, should it continue, is likely to moderate the forces for appreciation of the shekel."
    Global growth forecast have recently been revised downward, the BOI noted, primarily due to weakening momentum in emerging markets, while optimism about the U.S. economy was "reflected recently in remarks by the Chairman of the Federal Reserve."
    The Israeli economy appears to be slowing in recent months, the BOI said, pointing to economic activity indicators, with slower growth seen in the business sector, a worsening of investment and imports and a virtual standstill in the exports.
    In the first quarter of this year, Israel's Gross Domestic Product grew by 0.66 percent from the previous quarter for annual growth of 2.7 percent, up from 2.6 percent.
    The BOI's staff, which released its latest forecast, expects 2013 economic growth of 3.8 percent, including the effect of natural gas production, but 2.8 percent excluding gas output, down from 3.2 percent in 2012. The 2013 forecast is unchanged.
    For 2014, the BOI staff revised downwards its forecast due to a fiscal program to tackle deficits, forecasting growth of 3.2 percent including gas output, down from a previous forecast of 4.0 percent, and growth of 2.5 percent excluding fast, down from 3.3 percent previously.
    Israel's inflation rate, which rose slightly to 0.9 percent in May from 0.8 percent, is forecast at 2.1 percent in the four quarters ending in the second quarter of 2014, around the midpoint of the BOI's target of 1-3 percent.
    The BOI's interest rate is forecast to remain at 1.25 percent a year from now.

Israel holds rate on steady inflation, less shekel pressure - Central Bank News

For more details log on to Bank of Israel website : http://www.bankisrael.gov.il/en/Pages/Default.aspx

Morocco Central Bank holds rate, encourages loans to small businesses

Morocco's central bank held its key rate steady at 3.0 percent, saying inflation is expected to remain in line with the bank's price stability objective and the risks are balanced.
    Bank Al-Magrib also said it would implement a new program to encourage banks to lend to very small, small and medium-sized enterprises, particularly industrial companies that are export-oriented due to a continued deceleration in non-agricultural activity and bank credit.
    The program, with a minimum duration of two years, provides banks with liquidity collateralized mostly by private securities issued by such businesses, the Central Bank of Morocco said.
    Bank Al-Magrib trimmed its inflation forecast for 2013 to 2.1 percent from a March forecast of around 2.2 percent and maintained its forecast that inflation would be around 1.6 percent in the third quarter of 2014, averaging 2.0 percent over the forecast horizon.
    Morocco's inflation rate rose to 2.4 percent in April from 2.2 percent in March for an average rate of 2.4 percent in the first quarter, in line with the bank's forecast from March. Core inflation rose to 1.6 percent in April from 1.5 percent in March, mostly due to the dissipating effect of a cut in communications prices in 2012. Due to lower commodity prices, industrial producer prices fell by 4 percent in April after a 1 percent fall in March.

    Morocco's central bank has held its key rate steady since March 2012 when it cut rates by 25 basis points.
    Morocco's economy is forecast to bounce back this year after growth of 2.7 percent in 2012 due to an 8.9 percent fall in agriculture valued added and a 4.5 percent fall in non-agricultural GDP.
    This year, agricultural activity is benefitting from good weather while the non-agricultural sector will be impacted by the economic downturn in partner countries, mainly the euro area.
    Gross Domestic Product growth this year if forecast to range from 4.5-5.5 percent - up from a March forecast of 4-5 percent - with non-agricultural output rising 2.5-3.5 percent, which means the output gap remains below zero and the absence of inflationary pressures from domestic demand.
   The central bank said the international environment was still characterized by a "continued worsening of economic activity and the persistently high levels of unemployment," particularly in the euro area.
    "These developments, couples with lower commodity prices, contributed to keeping inflation at moderate levels, particularly in partner countries, which suggests the absence of significant external inflationary pressures on the national economy in the coming quarters," the bank said.

Morocco holds rate, encourages loans to small businesses - Central Bank News

For more details log on to http://www.bkam.ma

New Zealand Central Bank News

New Zealand's central bank held its Official Cash Rate (OCR) steady at 2.5 percent, as widely expected, and repeated that it expects to keep the rate "unchanged through the end of the year."
    The Reserve Bank of New Zealand (RBNZ) also repeated that the New Zealand dollar remains overvalued despite having fallen over the past few weeks and continues to cause headwinds for the tradeables sector, restricting export earnings and encouraging demand for imports.
    In April the RBNZ, which has held its policy rate steady since March 2011, also said it expected to keep the OCR rate steady through this year and that the currency, known as the kiwi, was overvalued.
    The kiwi bottomed out in March 2009 against the U.S. dollar at $0.49 and has been rising steadily since then, hitting $0.83 at the beginning of this year. But since early May the kiwi has been falling from $0.85 to below $0.80 today. The RBNZ has confirmed it has intervened in markets.
    The RBNZ said economic growth was picking up but remained uneven with consumption rising and reconstruction in Canterbury gathering pace and this will be reinforced by a broader recovery in construction, helping support overall activity and eventually easing the housing shortage. Fiscal consolidation, however, will also constrain demand.
    "As previously noted, the Reserve Bank does not want to see financial or price stability comprimised by housing demand getting too far ahead of the supply response," the bank said, quoting its governor, Graeme Wheeler.

    The RBNZ said its expects annual Gross Domestic Product growth to accelerate to about 3.5 percent by the second half of 2014 and inflation to rise toward the midpoint of the bank's 1-3 percent target.
    New Zealand's inflation rate was stable at 0.9 percent in the first quarter, the same as in the fourth quarter and only marginally higher than 0.8 percent in the third quarter.
    New Zealand's Gross Domestic Product rose by 1.5 percent in the fourth quarter from the third quarter for annual growth of 2.5 percent, up from 2.0 percent in the third quarter

New Zealand holds rate, still sees same rate through 2013 - Central Bank News

for more details log on to Reserve Bank of New Zealand website :  http://www.rbnz.govt.nz/