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Eurozone GDP increases in third quarter


Financial Markets

Emerging-market equities declined for a fifth day on Wednesday, led by raw-material and energy-
producers, amid slumping oil prices and China growth concern. The MSCI Emerging Market Index fell
1.6 percent, with China’s Shanghai Composite Index dropping 1.9 percent on weak trade data. The
benchmark index for the oil-exporting Arabian Gulf stocks tumbled to the lowest level since May 2013.
Emerging-market stock gauge is on course for its worst annual decline since 2011.

Mozambique’s central bank said it will set the limit for citizens using their credit and debit cards abroad at
700,000 meticals ($13,600) a year in a bid to stave off a shortage of foreign currency. The southern
African country’s currency has plunged 36 percent against the dollar this year even though the central
bank burned through nearly $1 billion of the country’s reserves to defend the currency.


High Income Economies

Optimism among small business owners in the U.S. fell sharply in November, according to a survey
based index of the National Federation of Independent Business. The index was broadly unchanged
over the previous three months, and is now well below the 42 year average. The survey also shows that
small business job creation is flat, while qualified workers are hard to find.

Third quarter GDP growth in the Euro Area was confirmed at 0.3 percent quarter-on-quarter (sa), and 1.6
percent year-on-year. The wider European Union economy grew faster at 0.4 percent quarter-on-quarter
and 1.9 percent year-on-year. Growth was led by household consumption, helping offset weak external
demand.

GDP growth in Japan was revised upwards to a gain of 1 percent (saar) in Q3, compared with a previous
estimate of a 0.8 percent contraction, avoiding a recession. The improvement was led by stronger
domestic demand, with non-residential investment higher and inventories subtracting less than had been
estimated previously.


Developing Economies

East Asia and Pacific

China’s trade surplus fell modestly to US$54.1 billion in November from a US$54.5 billion surplus a year
earlier and below market consensus, as imports fell more than exports. Exports declined by 6.8 percent
(y/y) while imports dropped 8.7 percent.

Europe and Central Asia

Turkey's industrial production growth climbed 4.6 percent (y/y) in October, faster than the 2.8 percent
gain in September. Economists had expected a 3.9 percent increase. Manufacturing sector saw an
increase in production by 5.0 percent, while the utility sector expanded by 4.1 percent. Meanwhile, mining
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and quarrying output fell by 0.5 percent. On a monthly basis, industrial production edged up 0.1 percent
(m/m), reversing a 0.1 percent drop in September.

Sub-Saharan Africa

Mining production in South Africa decreased by 4.6 percent (y/y) in October from the 4.7 percent decline
in September. The largest negative contributions were recorded for coal, iron ore and gold.

Kenya has been granted a one-year extension to sugar import limits from Common Market for Eastern
and Southern Africa (COMESA) to give it time to overhaul its ailing sugar industry. The arrangement
capping cheaper imports was scheduled to expire in February 2016.

December 8, 2015



The Global Daily is an informal briefing on global economic and financial developments compiled by the
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variety of macroeconomic topics, covered by the Group, may be found at:
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