Global markets: Brazilian and South African economies

(Barry Wilmore photo courtesy NASA)

CNS Canada — The following is a glance at the news moving markets globally.

BRAZIL’S ECONOMY EXPECTED TO CONTRACT ONCE MORE — Brazil’s economy is expected to contract three per cent this year, according to the country’s Central Bank, which surpassed analyst’s expectations of 2.97 per cent.

The newest projections are the most negative the country has seen this year.

Brazil has seen two years of GDP decline, and the situation isn’t expected to improve into 2016, as analysts estimate a 1.22 per cent contraction in 2016.

BRAZIL FACING PENSION CRISIS — At the time of an economic downturn, Brazil is facing a pension crisis.

The average age of retirement in the country is 54, and some citizens have been working the system to collect multiple pensions.

INTERNATIONAL MONETARY FUND LIKELY TO LOAN MONEY TO IRAQ — The International Monetary Fund (IMF) is considering lending to Iraq in 2016 to help stabilize the country’s finances.

Iraq has been dealing with low oil prices and the Islamic State insurgency, an official from IMF said.

SOUTH AFRICA RELEASES MEDIUM-TERM BUDGET — South Africa released its budget on Wednesday, which disappointed many students within the country who called for more money to be put toward education.

The South African finance minister cut the outlook for the country’s economic growth from two per cent to 1.5 per cent.

 

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