Currency exchange rates are intrinsically linked to the global economy. That’s why every week at theCurrent we bring you the world’s biggest business stories. This week: the US and Canada post promising economic data, India continues to explode, and Brazil suffers.
According to the OECD (the Organisation for Economic Co-operation and Development), Brazil’s economy shrank by 5.4% in Q1 of 2016, compared to Q1 of 2015. Overall, the South American giant could suffer from a contraction of 4.3% this year.
A Rate Rise in the US?
In the US consumer spending grew by 1% last month, the largest increase in almost 7 years, lending weight to arguments made by those who want the Federal Reserve to raise interest rates. Persistent issues in the global economy, including energy prices, China, and the eurozone could deter the Fed from lifting rates for the time being.
India Continues to Grow
India’s economy grew by 7.9% in Q1 of 2016, compared to Q1 2015. Growth over the last 12 months increased by 7.6% – the fastest rate since 2015. Modi’s government is claiming credit, but initial economic data in India is often unreliable.
Parents Working More
New data from Statistics Canada revealed that around 70% of households in Canada now have two working parents, about double the proportion from 40 years ago. The number of stay at home dads has increased from 1% in 1976 to 11% in 2014.
Canada With Decent Growth
Canada’s economy has grown at an annualized rate of 2.4% in Q1 of 2016, a healthy pace, but below the 2.9% that many economists had predicted. This is despite the economy contracting 0.2% in March, following a 0.1% drop in February.
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