Peru's fiscal adjustment may take place in 2016

2015 ◽  
Keyword(s):  
Credit Rating ◽  
Important Criterion ◽  
Consumer Spending ◽  
Short Term ◽  
Foreign Investors ◽  
Content Type ◽  
Direct Taxation ◽  
Tax Legislation ◽  
Fiscal Adjustment ◽  
Decision Making Processes

Subject Peru's fiscal policy. Significance On January 1, Peru's new tax legislation entered into effect. The move is part of the government's counter-cyclical fiscal and monetary strategy that aims to boost short-term growth and combat the slowdown in both domestic and foreign demand. The government's expectation is that tax cuts will have the effect of increasing corporate investment and consumer spending. Impacts Government attempts to stimulate investment are unlikely to have an impact on the decision-making processes of large foreign investors. Structural impediments may complicate raising the threshold of direct taxation -- an important criterion for eventual OECD membership. In spite of a growing fiscal deficit, Peru's credit rating will remain strong.

Domestic matters will determine Mexican foreign policy

2021 ◽  
Keyword(s):  
Foreign Policy ◽  
Energy Policy ◽  
Latin American ◽  
Public Support ◽  
Critical Rhetoric ◽  
Short Term ◽  
Foreign Investors ◽  
Content Type ◽  
International Profile ◽  
Latin American And Caribbean

Significance The move follows Mexico’s hosting of a Community of Latin American and Caribbean States (CELAC) summit last month, and provides an opportunity to expand the country’s international profile. However, AMLO generally disregards foreign policy, except as a tool for advancing domestic interests and building public support. Impacts US relations will continue to dominate foreign policy, despite AMLO’s critical rhetoric about rich nations. In the short term, Mexico will frame its foreign policy around calls for increased access to COVID-19 vaccines. Mexico’s energy policy could become a source of international tension, given its potential implications for foreign investors.

Russia's central bank will anticipate sanction risks

2021 ◽  
Keyword(s):  
Exchange Rate ◽  
Credit Rating ◽  
Bond Market ◽  
Secondary Market ◽  
Foreseeable Future ◽  
Foreign Reserves ◽  
Foreign Investors ◽  
Content Type ◽  
Economic Fundamentals ◽  
Sovereign Credit Rating

Significance Because the risk of sanctions was priced into Russian bond prices and the ruble exchange rate, the market reaction to the measures announced on April 15 was muted. US investors can still buy and hold OFZs and Eurobonds on the secondary market, but the prospect of further restrictions are possible. Impacts Sanctions risks will weigh down Russia's sovereign credit rating for the foreseeable future. Diminished liquidity in the bond market will make it difficult to price new Russian corporate debt, particularly for new issuers. Strong economic fundamentals and high foreign reserves will encourage foreign investors to return once uncertainty subsides.

An “adhocracy” of stakeholders, the case of ADSA in France (Essonne)

2016 ◽  
Vol 12 (1) ◽  
pp. 8-23 ◽  
Author(s):  
Phillipe Naszalyi ◽  
Arnaud Slama-Royer
Keyword(s):  
Free Market ◽  
Public Funding ◽  
Short Term ◽  
Content Type ◽  
Non Profit ◽  
The Public ◽  
Structural Problems ◽  
Decision Making Processes ◽  
Hybrid Management ◽  
French Association

Purpose – The purpose of this paper is to analyze the structural problems emerging in the course of managing and safeguarding a French association for home care to a thousand elderly or disabled people between 2007 and 2012, employing 150 - 190 people and on the verge of bankruptcy. In France, small local businesses not only compete with major capital outlets in this sector but also with associations of varying size and origin. Free market rules apply, under the legislation of 2003, to what is, in part, “competition free”, being “in the public interest” and within the framework of local and national public funding. Design/methodology/approach – This paper analyses those pragmatic solutions put in place to meet the aim of shared governance and in the context of a generalized financial crisis. Findings – Borrowing from cooperatives and associations, the non-profit-based management structure the authors arrived at, including worker participation in the decision-making processes, raises questions for researchers as to the advisability of any short-term models and the validity of present social and supportive economic models. Originality/value – The hybrid management of this paper is offered as a working model in what the authors have termed an “adhocracy of stakeholders”.

Kuczynski ouster would rock Peru political stability

2017 ◽  
Keyword(s):  
Decision Making ◽  
Economic Policy ◽  
Credit Rating ◽  
Negative Impact ◽  
Political Stability ◽  
Short Term ◽  
Content Type ◽  
Construction Company ◽  
Institutional Stability ◽  
Delay Decision

Significance Kuczynski’s future as president hangs in the balance. His refusal to heed opposition demands for his resignation may harden the resolve of a congressional majority to vote for his ouster on grounds of ‘moral incapacity’. Kuczynski, who will face his parliamentary accusers on December 21, is embroiled in controversy as to whether he received funds from Brazilian construction company Odebrecht when a minister. Impacts Kuczynski’s removal would probably lead to a downgrade in Peru’s credit rating. It would delay decision-making, but not necessarily herald a shift in economic policy. The hiatus would have a further negative impact on institutional stability. The main beneficiary, at least in the short term, would be Keiko Fujimori.

Zimbabwean mining push faces vested interests

2018 ◽  
Keyword(s):  
Political Elites ◽  
Investment Climate ◽  
Short Term ◽  
Mining Sector ◽  
Foreign Investors ◽  
Content Type ◽  
Legislative Reform ◽  
Economic Prospect ◽  
Vested Interests ◽  
Ruling Party

Subject Zimbabwe mining prospects. Significance President Emmerson Mnangagwa has repeatedly said Zimbabwe is open for business, but this has yet to be backed up by substantive legislative reform or efforts at tackling entrenched corruption. Without fundamental changes, Zimbabwe’s mining sector will continue to deter legitimate investors and remain dominated by military and political elites. Impacts Rejoining the Commonwealth could help improve the overall investment climate, but only if substantive democratic reforms are pursued. Minerals will be the key economic prospect that Mnangagwa can use to entice foreign investors in the short term. Should ZANU-PF triumph in the polls, ruling party infighting could intensify over Mnangagwa’s future successor.

Global investment prospects face multiple risks

2019 ◽  
Keyword(s):  
Product Market ◽  
Relative Price ◽  
Market Reforms ◽  
Consumer Spending ◽  
Short Term ◽  
Content Type ◽  
Corporate Power ◽  
Multiple Risks ◽  
Tradable Goods

Significance The research highlights increasing corporate power, and tariff and non-tariff barriers, and raises the prospect that if unchecked these trends will reduce investment and trade. Particularly, they risk ruining the multi-decade investment momentum fuelled by the falling relative price of tradable goods. Impacts Regulation could cut the profitability of major US tech firms and the wages they pay, reducing consumer spending disproportionately. A US-China goods trade deal will have scant impact on curbing the worldwide rise of non-tariff barriers. Policymakers are likely to focus on short-term reflation ahead of labour and product market reforms.

Polish VAT surge may subside from mid-2018

2017 ◽  
Keyword(s):  
Credit Rating ◽  
Value Added ◽  
Tax Revenue ◽  
Positive Trend ◽  
Government Budget ◽  
Short Term ◽  
Content Type ◽  
The Difference ◽  
The Government ◽  
The Eu

Significance Budget data for the first ten months show revenue from value-added tax (VAT) exceeding the forecast by 22%. That could help narrow Poland’s 'VAT gap' -- the difference between collected and potential taxes. Impacts Poland is likely to bring its VAT gap closer to the EU average in the short term. However, this positive trend may offer only a temporary reprieve for ruling PiS. Rising tax revenue will boost not only the government budget but also Poland’s credit rating.

South Africa's Mboweni will aid Ramaphosa reform push

2018 ◽  
Keyword(s):  
South African ◽  
Credit Rating ◽  
Short Term ◽  
Content Type ◽  
Rating Agencies ◽  
Reserve Bank ◽  
Freedom Fighters ◽  
Left And Right ◽  
The Government

Significance A former South African Reserve Bank (SARB) governor and minister of labour, Mboweni faces a crucial first few weeks in his new post as the government attempts to placate rating agencies and engineer an economic turnaround. Mboweni’s initial moves may be determined by Moody’s credit rating review expected today. Impacts In the short term, Mboweni’s appointment will be a boost for Ramaphosa’s bid for fiscal consolidation and growth. In the medium-to-long term, Mboweni will likely prove a more polarising figure inside the ANC than Nene. Allegations linking the Economic Freedom Fighters with a major banking scandal could give Mboweni and the ANC an early political 'win'. Mboweni's previous social media utterances could be further exploited by opponents, both left and right, in the months ahead.

Thailand’s democratic deficit will dampen GDP growth

2018 ◽  
Keyword(s):  
Public Spending ◽  
Gdp Growth ◽  
Democratic Deficit ◽  
National Strategy ◽  
Consumer Spending ◽  
Short Term ◽  
Domestic Activity ◽  
Content Type ◽  
The Government ◽  
The Impact

Subject Outlook for the Thai economy. Significance Thailand's GDP grew by 3.9% last year, the most since 2012, and is expected to remain at around 4.0% this year, with stronger public spending supporting surging tourism and solid consumer spending. Thailand’s National Strategy aims to raise GDP growth to 5-6%, but this ambition faces rising short-term risks and longer-term structural impediments. Impacts Despite rising pressure on the government to hold elections, protests will not grow, limiting the impact on spending and tourism. Automobiles, semiconductors and other electronics -- key Thai exports -- will be hit by deteriorating US-China relations. The Bank of Thailand is one South-east Asian central bank keen to ‘normalise’ rates, but higher rates could dampen domestic activity.

Malaysia will struggle to foster economic growth

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Prime Minister ◽  
Credit Ratings ◽  
Political Support ◽  
Short Term ◽  
Foreign Investors ◽  
Content Type ◽  
Fiscal Management ◽  
Finance Minister

Subject Malaysia's 2019 budget. Significance Finance Minister Lim Guan Eng’s 314.5-billion-ringgit (75-billion-dollar) budget for 2019, tabled earlier this month, will likely be approved in parliament before year-end. The first budget under Prime Minister Mahathir Mohamad anticipates a budget deficit of 3.4% of GDP. Shortly after coming to power this May, Mahathir said he would give way to Pakatan Harapan (PH) coalition partner Anwar Ibrahim within two years. Impacts The PH’s fiscal management will bolster confidence among foreign investors and credit ratings agencies. The lack of budget handouts to rural Malay constituencies could weaken political support for the PH in the short term. Government borrowing will likely become more expensive through 2019. The digital economy tax introduced in the budget will come into effect in 2020. Corruption investigations into missing revenues could result in further legal charges against members of the former government.

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