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China’s top leaders on Thursday pledged more stimulus measures to shore up the country’s economy, building on steps they have taken in recent months to bolster growth, the New York Times reported. At an annual gathering of the Chinese Communist Party and the cabinet, led by the country’s top leader, Xi Jinping, officials agreed that the government should allow a bigger budget deficit, borrow more and cut interest rates, the state television broadcaster said on Thursday.
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China is poised to roll out an expansion of its nationwide private pension system as the world’s second-largest economy faces a rapidly aging population and its public pension fund is running dry, the Wall Street Journal reported. Workers covered by the nation’s basic pension insurance system can voluntarily open private pension accounts and deposit up to 12,000 yuan, equivalent to about $1,650, a year into the accounts, five governing bodies, including the Ministry of Human Resources and Social Security, said in a joint statement yesterday.
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The European Central Bank lowered interest rates for a third consecutive meeting, signaling more reductions next year as inflation nears 2% and the economy struggles, Bloomberg News reported. The deposit rate was cut by a quarter-point to 3% — as predicted by all but one analyst in a Bloomberg survey. That brings total easing since June to 100 basis points. Indicating its shifting stance, the ECB’s statement dropped wording saying policy will remain “sufficiently restrictive” for as long as necessary.
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Germany’s economy is at a crossroads after treading water for five years, and will only recover should the country make radical structural changes, according to a leading economics research group, the Wall Street Journal reported. The Ifo Institute said that Germany’s economy would shrink 0.1% this year, and only grow 0.4% in 2025, unless the government implemented pro-growth policies that included lowering corporate taxes, lessening bureaucracy, improving infrastructure and boosting the labor supply.
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The Swiss National Bank cut its interest rate by 50 basis points on Thursday, its biggest reduction in almost 10 years, responding to weaker than expected inflation in Switzerland and growing uncertainty about the global economy, Reuters reported. The central bank flagged tepid price increases, rising risks around future U.S. economic policy and political hazards in Europe as it reduced its policy rate from 1.0% to 0.5%, the lowest since November 2022.
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Argentina’s monthly inflation slowed to the lowest level since July 2020, handing President Javier Milei another victory on voters’ biggest concern a year after taking office, Bloomberg News reported. Consumer prices rose 2.4% in November, compared with the 2.8% median forecast of economists surveyed by Bloomberg. Annual inflation slowed to 166%, according to government data published Wednesday.
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Brazil’s central bank lifted its key interest rate by one percentage point and surprised investors by promising two more hikes of the same size, its strongest move yet to recover investor confidence and tame inflation expectations that have been propelled by public spending and a hot economy, Bloomberg News reported. Board members boosted the Selic to 12.25% late on Wednesday as expected by 14 of 35 economists in a Bloomberg survey, with all others expecting a smaller rise.
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The International Monetary Fund is open to renegotiating Ghana’s $3 billion financing program with the incoming administration provided accompanying reforms aren’t jeopardized, Bloomberg News reported. “IMF-supported programs are developed collaboratively with each country’s authorities,” a spokesperson for the Washington-based lender said in response to emailed questions.
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Italy will scale back plans to increase taxes on cryptocurrency capital gains, ruling politicians said on Tuesday, following criticism from the affected industry and rows within the party of the economy minister, Reuters reported. "The tax increase will be significantly reduced during the parliamentary work," lawmaker Giulio Centemero and Treasury Junior Minister Federico Freni, both from the co-ruling League party, said in a statement.
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Serbia's printing house Stamparija Borba said that its general assembly endorsed a decision by the company's management to initiate bankruptcy proceedings, SeeNews.com reported. Belgrade-based Stamparija Borba stopped operating in April 2023, all employees were declared redundant, and the printing equipment was scrapped and cashed out, the company said in a filing with the Belgrade bourse on Monday. The government holds a 37.5% stake in Stamparija Borba, the state pension fund owns 31.5%, the state health insurance fund holds 12.7%, while the city of Belgrade has a stake of 8.2%.