Category Archives: Global economy

Forget GDP, ‘vulnerability index best gauges aid’ to small islands

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Commonwealth research says UVI is better measure of small island states’ aid needs, especially on climate

Small island nations on the climate crisis frontlines have been overlooked in overseas aid, according to a new index.

Urging a move away from the current benchmark of using gross domestic product (GDP) to measure aid allocation, researchers from the Commonwealth secretariat and the Foundation for Studies and Research on International Development (Ferdi), a French thinktank, have developed the universal vulnerability index (UVI) as an alternative. GDP, they claim, fails to reflect the realities nations face, particularly on climate.

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Recipe for inflation: how Brexit and Covid made tinned tomatoes a lot dearer

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Combine the pandemic with rising raw material costs, stir in a labour shortage, a twist of Brexit, add a pinch of poor weather and voila …

Tinned tomatoes are a taken-for-granted store cupboard staple, relied upon by Britons to whip up home cooked favourites such as spaghetti bolognese. But the price could soon make you take notice, amid warnings of higher shopping bills, set against a backdrop of soaring global food prices.

From the packaging to the transportation and the energy used in manufacturing, nearly all aspects of the production of this popular ingredient now cost more. The crushed tomatoes alone are 30% dearer than a year ago, at €0.48 per kilo. The same pressures are driving the prices of many foods higher, meaning Britons will probably face bigger bills for groceries or meals out this autumn.

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Half of Zimbabweans fell into extreme poverty during Covid

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Poor families cannot afford healthcare and schooling but good harvests offer some hope, World Bank finds

The number of Zimbabweans in extreme poverty has reached 7.9 million as the pandemic has delivered another economic shock to the country.

According to the World Bank’s economic and social update report, almost half of Zimbabwe’s population fell into extreme poverty between 2011 and last year, with children bearing the brunt of the misery.

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China rushes through law to counter US and EU sanctions

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Foreigners could be placed on an anti-sanctions list and denied entry into China or expelled from the country

China has passed a law to counter foreign sanctions in response to US and EU pressure over trade, technology, Hong Kong and Xinjiang.

Individuals or entities involved in making or implementing discriminatory measures against Chinese citizens or entities could be put on an anti-sanctions list and may be denied entry into China or be expelled from the country. Their assets within China may be seized or frozen and they could be restricted from doing business there.

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Global economy set for fastest recovery for more than 80 years

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Slow Covid-19 vaccine progress in low-income countries will widen divisions between rich and poor nations

The global economy is set for the fastest recovery from recession for more than 80 years, but poor nations are at risk of falling further behind wealthy countries amid slow progress with the Covid-19 vaccine, the World Bank has said.

In its half-yearly outlook report, the Washington-based institution said the world economy was forecast to grow at 5.6% this year, in a sharp upgrade from previous estimates it made in January for growth of 4.1%.

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Climate crisis to shrink G7 economies twice as much as Covid-19, says research

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G7 countries will lose $5tn a year by 2050 if temperatures rise by 2.6C

The economies of rich countries will shrink by twice as much as they did in the Covid-19 crisis if they fail to tackle rising greenhouse gas emissions, according to research.

The G7 countries – the world’s biggest industrialised economies – will lose 8.5% of GDP a year, or nearly $5tn wiped off their economies, within 30 years if temperatures rise by 2.6C, as they are likely to on the basis of government pledges and policies around the world, according to research from Oxfam and the Swiss Re Institute.

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‘Historic agreement’: Rishi Sunak announces G7 deal on tax reform – video

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Finance ministers from the world’s richest economies have agreed a deal to tackle tax abuses by some of the world’s biggest multinationals and establish a minimum global corporation tax for the first time. Announcing the deal, the UK chancellor, Rishi Sunak, said it would create ‘a fairer tax system fit for the 21st century’

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‘We have to participate’: what Europe’s Gen Z want from their post-Covid lives – video

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Covid-19 policies risk leaving psychological and socioeconomic scars on millions of young people across Europe, with far-reaching consequences for them and society, a wide-ranging Guardian project has revealed.

Taking a snapshot, the Guardian asked five members of Europe’s Generation Z how the worst global pandemic in a century has affected their lives, what they have learned and how they see their future after the pandemic

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Protesters call on banks to ‘drop African debt’ in wake of Covid

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World’s poorest nations saddled with ‘imprisoning’ debt, hampering responses to the pandemic, say activists protesting HSBC meeting

Activists at a demonstration outside the annual general meeting of HSBC in London have demanded the bank and other financial giants provide debt relief to African countries hit hard by the coronavirus pandemic.

In an attempt to highlight the role of private creditors in the debt crises of the world’s poorest countries, campaigners with “drop the debt” banners gathered outside HSBC’s AGM at the Southbank Centre.

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US to sue Canada over dairy practices as hopes for better trade relations fade

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US trade representative announced plans to sue as Canadian officials face growing tensions with US

After a tumultuous four years living next door to Donald Trump, many Canadians had hoped that relations with their closest neighbour would mend under Joe Biden. The former president had slapped tariffs on Canadian steel and aluminum, threatened levies on the automotive sector, and called the prime minister, Justin Trudeau, “two-faced”.

But in recent weeks, Canadian officials have faced growing tensions with the US under Biden as leaders on both sides confront domestic political challenges.

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Beijing accuses G7 ministers of interfering in China’s affairs

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Foreign ministry responds to west’s human rights claims, saying countries should ‘face up to their own problems’

China has rejected accusations of human rights abuse and economic coercion, made by G7 foreign ministers, accusing them of “blatantly meddling” in China’s internal affairs, calling their remarks groundless.

“Attempts to disregard the basic norms of international relations and to create various excuses to interfere in China’s internal affairs, undermine China’s sovereignty and smear China’s image will never succeed,” said the foreign ministry spokesperson, Wang Wenbin. “They should not criticise and interfere with other countries with a superior mentality, and undermine the current top priority of international anti-epidemic cooperation.”

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Ireland will resist global corporate tax rate, says finance minister

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Paschal Donohoe says Dublin will not accept reforms that affect its ability to undercut its rivals

Ireland’s finance minister has signalled the country will resist attempts to rebalance the global tax system if they affect Dublin’s ability to undercut its rivals.

Under new tax proposals led by the US, Ireland could lose 20% of its tax revenues, according to Paschal Donohoe.

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FTSE 100 closes above 7,000 for first time since Covid crash

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Shares rise by more than 30 points as China reports record economic growth

The FTSE 100 has closed above 7,000 for the first time since the Covid-19 pandemic triggered a collapse in global markets last year, driven by rising hopes for the world economy after record growth in China.

The index of leading UK company shares ended the day up 36 points on Friday, or 0.5%, at 7,019, the highest level since late February 2020 when the first wave of Covid-19 sent shock waves through financial markets around the world.

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Aid agencies can be harmful, says Somaliland tycoon

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Ismail Ahmed, a refugee turned multimillionaire, says his country has had to battle ‘negative PR’

Aid agencies are hindering development and undermining efforts to attract investment in Somaliland, according to a former World Bank and UN official turned entrepreneur.

Ismail Ahmed, founder of the money-transfer company WorldRemit, claims Somaliland, his birthplace, has had to battle “negative PR” from aid agencies exaggerating their role to protect their interests. Somaliland declared itself a sovereign state independent of Somalia in 1991, but it is not recognised internationally.

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G20 takes step towards global minimum corporate tax rate

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Meetings of finance ministers follow change in US stance, with consensus growing on tackling tax avoidance

G20 finance ministers are exploring a global minimum tax on corporate profits, amid growing international consensus on tackling avoidance after the pandemic.

The virtual meetings between the group of 20 major industrial nations come after the US made the case for an international base rate this week, in a move by the Biden administration to end US resistance to international tax reforms.

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‘Opportunity is coming’: Joe Biden celebrates latest jobs report – video

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Joe Biden has encouraged Americans to ‘buckle down’ as coronavirus cases rise but he was optimistic on the state of the economy and celebrated the latest jobs report.

The US economy added 916,000 jobs last month according to the report which Biden credited to the resiliency of the American people and his administration’s new economic vision

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A year of Covid crisis: a glimmer of economic hope at the end of the tunnel

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Twelve months after the pandemic struck the Guardian’s economic tracker reveals real risk of lasting damage

When Boris Johnson announced the first stay-at-home order, effectively shutting down whole sections of the economy, it was hoped the tide could be turned within 12 weeks. As many months later, lockdown measures are being relaxed for a third time and Britain still faces a lengthy road to recovery from the worst recession for 300 years.

As restrictions ease, the chief economist at the Bank of England, Andy Haldane, warned that despite the reopening of the economy, the risk of a “jobs equivalent of long Covid” remains for workers across the country.

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Osinbajo defies expectations as Nigeria’s vice-president

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Analysis: Buhari’s deputy wants to create jobs, feed pupils and cut red tape. Is he too high-profile for his critics?

The role of vice-president is one that John Adams, the first person in the US to hold the position, called “the most insignificant office that ever the invention of man contrived”.

Nigeria’s Patience Jonathan captured the situation in her sarcastic response to a journalist who asked about her husband, Goodluck Jonathan, when he was vice-president. She said: “He is in his office reading newspapers.”

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Suez canal: Syria ‘rations’ fuel as efforts to free stuck ship fail

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Syria oil ministry restricts supply as canal chief says ‘technical or human errors’ may have been behind stranding of the Ever Given

Syrian authorities say they have begun rationing fuel as the blockage of the Suez canal stretched into a sixth day, delaying vital shipments and worsening the country’s oil shortages.

Syria has been mired in civil war since 2011 and faces a severe economic crisis. It had already announced a more than 50% rise in the price of petrol in mid-March.

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The Guardian view on China, Xinjiang and sanctions: the gloves are off | Editorial

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Beijing wants to silence critics of its treatment of Uighurs. But the impact will be broader

China’s response to criticisms of horrifying human rights violations in Xinjiang is clear and calculated. Its aims are threefold. First, the sanctions imposed upon individuals and institutions in the EU and UK are direct retaliation for those imposed upon China over its treatment of Uighurs. That does not mean they are like-for-like: the EU and UK measures targeted officials responsible for human rights abuses, while these target non-state actors – elected politicians, thinktanks, lawyers and academics – simply for criticising those abuses.

Second, they seek more broadly to deter any criticism over Xinjiang, where Beijing denies any rights violations. Third, they appear to be intended to send a message to the EU, UK and others not to fall in line with the harsher US approach towards China generally. Beijing sees human rights concerns as a pretext for defending western hegemony, pointing to historic and current abuses committed by its critics. But mostly it believes it no longer needs to tolerate challenges.

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