It’s been a bad week for economic news. Both the United States and Canada posted record job losses, home foreclosures continue to rise, and Congress is at an impasse on how to (or if to) bail out the U.S. auto industry. Here’s five stories you might have missed amid all the bad economic news coming out this week.
1. Massive riots rocked the Greek capital of Athens on Sunday, as young Greeks took to the streets to protest the killing of teenager by police. The center-right Greek government has been under pressure amid the spread of the financial crisis to Greece. It currently holds a narrow two-seat majority in the country’s parliament, but the protests—the largest in Greece since World War II—may force some concessions on the part of the government.
2. Amid news that the global economic crisis is taking a severe toll in Asia, both China and India are seeking to limit the spread of the crisis by instituting Keynesian-style economic stimulus packages. India has announced a $4 billion package while China is seeking to boost domestic consumption. Both plans have been criticized for being too small in the face of the current crisis.
3. The Israeli closure of the Gaza Strip continues. According to Palestinian officials, the impact of the closure is so severe that the Gaza’s financial institutions have run out of money. The lack of cash has affected nearly all aspects of daily life in Gaza, as families lack the cash to purchase basic supplies and relief agencies have been forced to suspend their work. Israel maintains the closure is necessary to prevent the Hamas government in Gaza from attacking Israeli settlements near Gaza.
4. Elections are being held in Ghana, one of Africa’s most longstanding and stable democracies. Sunday’s presidential election is projected to be very close, potentially triggering a run-off election later this month. Many are looking to Ghana to illustrate the potential of peaceful political transitions to countries like Kenya, Zimbabwe, and Nigeria, which experienced violence surrounding recent elections.
5. Regional economists are raising concerns that Latin American governments may be crowded out of international credit markets due to barrowing by the United States and other developed countries. The Latin American Shadow Financial Regulatory Committee, comprised of former finance ministers and central bank governors from the region, are warning that the loss of access to credit could have severe consequences in the region, potentially forcing countries to undertake painful fiscal adjustments or detrimental import restrictions and capital controls.