Mexico’s auto industry faces dual challenges

2020 ◽  
Keyword(s):  
United States ◽  
Health Risks ◽  
Auto Industry ◽  
The United States ◽  
Production Costs ◽  
Economic Recovery ◽  
Economic Downturn ◽  
Content Type ◽  
Key Industry

Significance The USMCA represents continuity with NAFTA in most sectors, but introduces new rules governing the automotive trade, a key industry for Mexico’s economy. The challenges of USMCA implementation come on top of a severe economic downturn due to the COVID-19 pandemic. Impacts The USMCA provides some commercial certainty for investors in Mexico, in a context of political and health risks. The new rules bring opportunities for new auto investment in Mexico, but these may come at the expense of higher overall production costs. The agreement’s immediate impact will depend on the pace of economic recovery in Mexico and the United States.

US TPP implementation faces major hurdles in Congress

2015 ◽  
Keyword(s):  
United States ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
The United States ◽  
Asia Pacific ◽  
South East Asia ◽  
Content Type ◽  
White House ◽  
Us Government ◽  
Key Industry

Significance The Obama administration faces an uphill fight in Congress to secure enough votes for TPP ratification, given Democratic suspicions of free trade agreements, Republican animus for the White House and the frustrations of key industry groups in the United States. The United States can in effect veto the TPP's international implementation, while the White House's 'Asia pivot' policy relies partly on firmer trade ties with East and South-east Asia. Impacts The battle over TPP will likely divert political capital and US government resources from the TTIP negotiations. China may benefit diplomatically in the Asia-Pacific if the United States blocks TPP from coming into force. The trade debate may spill over to greater US legislative attention on currency manipulation issues ahead of 2017.

EU global regulatory influence faces rising challenges

2020 ◽  
Keyword(s):  
United States ◽  
The United States ◽  
Economic Recovery ◽  
Political Values ◽  
Content Type ◽  
Recovery Plan ◽  
Democratic Candidate ◽  
Regulatory Influence ◽  
The Eu

Significance However, the economic and geopolitical environment which facilitated its global regulatory success is changing. Impacts The EU’s unprecedented economic recovery plan should strengthen unity and give it confidence to act stronger on the global stage. Political values will play an increasingly prominent role in shaping the bloc’s relationship with countries such as China. The election of Democratic candidate Joe Biden will not guarantee closer regulatory ties between the United States and the EU.

US-Cuba thaw will raise hopes of extractives boost

2016 ◽  
Keyword(s):  
United States ◽  
The United States ◽  
Economic Recovery ◽  
Content Type ◽  
Foreign Companies ◽  
Energy Projects ◽  
Operational Practices ◽  
Capital Injections

Subject Cuba extractive opportunities. Significance US President Barack Obama's recent visit to Cuba has increased hopes of an economic recovery in the isolated island nation. Cuba is said to have almost 250 mining and energy projects in need of investors and is experiencing a sudden, but modest, investment boost thanks to its rapprochement with the United States. Impacts The prospect of the embargo being lifted could encourage more foreign companies to invest now to beat a possible rush. The end of the embargo would be a boon for Canadian mining firms, facilitating investment, operations and sales. While some firms may sell their Cuban operations, others will see capital injections from US companies. Operational practices will face closer scrutiny, necessitating increased investment in raising standards.

Japan will engage steadfastly with South-east Asia

2020 ◽  
Keyword(s):  
United States ◽  
East Asia ◽  
North Korea ◽  
The United States ◽  
Economic Recovery ◽  
South East Asia ◽  
Donald Trump ◽  
Content Type ◽  
Major Powers ◽  
Manufactured Goods

Significance Japan is viewed by ASEAN states as the most constructive player among the major powers. China is seen as aggressive and the United States as unreliable under President Donald Trump. Impacts Suga is unlikely to remain in office for more than a year. Post-pandemic economic recovery in Japan will be slow due to weak demand for its manufactured goods at home and abroad. China’s stance over the disputed Senkaku/Diaoyu Islands and the missile threat from North Korea will be Tokyo’s top security concerns.

Third term bid will cloud Zambian funding prospects

2017 ◽  
Keyword(s):  
United States ◽  
Civil Society ◽  
Presidential Elections ◽  
The United States ◽  
Financial Assistance ◽  
Considerable Progress ◽  
Economic Recovery ◽  
Economic Decline ◽  
Content Type ◽  
International Donors

Significance A recent IMF mission reported considerable progress towards agreement on a proposed 1.2-billion-dollar rescue package. However, the increasingly authoritarian bent of the Patriotic Front (PF) government is complicating prospects for wider financial assistance. International donors are wary of supporting President Edgar Lungu who stands accused of rigging the 2016 presidential elections, undermining civil society, and interfering with the judiciary to secure a controversial third, five-year term in office. Impacts Without a comprehensive economic recovery plan in place shortly, ratings agency downgrades could take place later this year. The removal of popular subsidies on food and electricity is likely to trigger popular protest and result in opposition gains. Rising demand for copper in the United States and China may result in a spike in prices, alleviating economic decline.

scholarly journals Longitudinal Study of Pandemic and Natural Disaster Distress

2020 ◽  
Author(s):  
Joseph Bulbulia ◽  
Sofia Piven ◽  
Lara Greaves ◽  
Danny Osborne ◽  
Geoffrey Troughton ◽  
...  
Keyword(s):  
United States ◽  
Psychological Distress ◽  
Longitudinal Study ◽  
New Zealand ◽  
Natural Disaster ◽  
Health Risks ◽  
Sense Of Community ◽  
The United States ◽  
Economic Downturn ◽  
Social Belonging

Recent research in New Zealand, Australia, China, and the United States finds that COVID-19 increased psychological distress as measured by the Kessler-6 inventory. It is theorised that health risks, loss of employment, and economic downturn precipitated by COVID-19 produced distress, and that confidence in government, social belonging, and sense of community may mitigate against pandemic distress. However, theories of pandemic distress mitigation remain untested. Here, we compare longitudinal responses from the New Zealand Attitudes and Values Study (NZAVS), March 26th to April 12th, 2020 (lockdown), with participants’ pre-COVID-19 baselines from the previous year (N=940) to investigate pandemic distress mechanisms during New Zealand's first stringent national lockdown.

After the Bust, the Denial, 2007–2009

2018 ◽  
Author(s):  
Ashoka Mody
Keyword(s):  
United States ◽  
Financial Crisis ◽  
Euro Area ◽  
European Central Bank ◽  
The United States ◽  
Banking Crises ◽  
Economic Recovery ◽  
Economic Downturn ◽  
European Central ◽  
The U.S

This chapter examines the financial crisis that had begun in early 2007 in the United States. Euro area banks had taken big risks both in the U.S. and at home; almost instantly, they had become enmeshed in the crisis. The global financial implosion had transformed into an unnerving global economic downturn. U.S. authorities had responded with vigor, and by mid-2009, the U.S. was on its way to financial and economic recovery. In the euro area, the European Central Bank (ECB) had remained in denial and national authorities had struggled to tame their domestic banking crises. As the crisis had unfolded, government guarantees that promised to protect creditors and ECB liquidity had propped up euro area banks. However, delays in dealing with insolvent banks, who had gambled and lost, were certain to impede further economic recovery and, ultimately, inflict large costs on governments.

French and US corporate debt risks are rising

2019 ◽  
Keyword(s):  
United States ◽  
United Kingdom ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
The United States ◽  
Corporate Bond ◽  
Corporate Debt ◽  
Economic Downturn ◽  
Subprime Crisis ◽  
Content Type

Subject Advanced world corporate debt risks. Significance Expansionary fiscal and monetary policies have boosted economic activity in the United States, Japan, Germany, United Kingdom and France since the global financial crisis, and corporate profits have grown faster than real GDP in all five. In Germany, Japan and the United Kingdom, profits have outgrown the outstanding debts held by financial corporations. This is not the case in the United States or France, where corporate debt risks are piling up. Impacts If credit conditions deteriorate or there is an economic downturn, France will have the largest number of highly indebted companies at risk. France’s high corporate debt exposure may prompt the authorities to raise further the counter-cyclical capital buffers banks must hold. Surging leveraged loans and share buybacks are fuelling speculative-grade US corporate bond activity, threatening financial stability. Risks are intensified in specific segments, but the subprime crisis shows that even limited specific risks can threaten overall stability.

Costa Rica’s economy looks set for a strong recovery

2021 ◽  
Keyword(s):  
United States ◽  
Exchange Rate ◽  
High Frequency ◽  
The United States ◽  
Economic Recovery ◽  
High Frequency Data ◽  
Frequency Data ◽  
Short Term ◽  
Content Type ◽  
Credit Quality

Significance GDP posted growth of 9.4% year-on-year in the second quarter, the highest rate in 23 years. According to high-frequency data, economic recovery appears to have continued between July and September albeit at a slightly slower pace. Impacts Low inflation will allow the Central Bank to maintain an accommodative stance in the short term; any rate hikes next year will be gradual. Banks’ profitability and credit quality may deteriorate in 2022 as loan restructuring measures expire and lagged pandemic effects kick in. The exchange rate may further depreciate amid uncertainty over the country’s fiscal prospects and the outcome of the 2022 elections. While tourism appears to be on a strong trajectory, the spread of Omicron in Europe and the United States could reverse its recovery.

Economic downturn raises South-east Asia piracy risk

2020 ◽  
Keyword(s):  
United States ◽  
South China Sea ◽  
East Asia ◽  
The United States ◽  
Economic Downturn ◽  
South East Asia ◽  
Content Type ◽  
Major Powers ◽  
Insurance Rates ◽  
State Responses

Significance The region has some of the world’s busiest ports and sea lanes, which play a key role in global trade. Impacts High rates of piracy incidents will increase insurance rates for ships passing through South-east Asia. Growing tensions in the South China Sea will complicate state responses to piracy. Major powers such as the United States and Japan will increase capacity-building support for regional navies and coast guards.

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