world economy

Wall Street Plays a Risky Game, Again

Taking note of the Dow's progress, The Wall Street Journal recently called its performance "eerie ... calm ... too quiet." Indeed, if things keep going at the rate they have been going so far, we're on track for the stock markets to gain more than 50% this year. Dow 18,000, anyone?

As Japan Slips, China Moves Into Second Place

China has officially bumped Japan as the world's second largest economy. Japan reported its GDP grew only 1.8% last year to $5.47 trillion, while China's climbed 10.3% to $5.88 trillion.

OECD Cuts World Growth Outlook, Predicts 'Softspot'

The Organization for Economic Cooperation and Development (OECD) cut its prediction for economic growth in 2011, forecasting a "softspot" as governments withdraw stimulus packages. The OECD said the world economy will grow by 4.2% in 2011, compared with a previous forecast of 4.5%, Bloomberg News reported. Growth will rise to 4.6% in 2012.

China Moves to Limit Bank Lending

China ordered state-owned banks to limit lending as it moves to control inflation and prevent a credit bubble. The Chinese government told the six largest state-owned banks to increase their reserves to 17.5% of deposits from 17%, The Associated Press reported.

Coffee and the world economy

Coffee has kick-started many a financial venture, but some of us may under-appreciate its importance in the world economy. Our friends at

George Soros: No Doubt About a Slowdown

A widespread push for fiscal discipline is "the right policy at the wrong time," said famed investor George Soros at a Wednesday morning Q&A. He fears it will further depress a world economy already suffering from the blahs.

China's Economy Slows on Tighter Credit, Unwinding Stimulus

China%u2019s economy, the world%u2019s third-largest, is slowing as the government tightens credit and unwinds its stimulus package. Growth slowed to 10.3 % in the second quarter from 11.9% in the first quarter, The Associated Press reported. This slowdown could hit global economic demand.