US business activity stalls, German GDP expected to shrink, and other economics news to read this week

They predict a 0.6% decline in GDP, marking a deterioration from a forecast for 0.3% contraction made earlier this year.

“The most important reason for this revision is that industry and private consumption are recovering more slowly than we expected in spring,” said Oliver Holtemoeller, head of the macroeconomics department at the Halle Institute for Economic Research.

However, the downturn is not expected to last. For 2024, the forecast rises to 1.3% growth, followed by a 1.5% expansion in 2025.

Australia’s inflation rate hit 5.2% in the year to August, up from 4.9% in July. The increase was largely driven by fuel prices, Reuters reports.

The Eurozone economy is likely to contract this quarter and growth is seen as an increasingly distant prospect, a new survey suggests.

Singapore has announced new funding to help households with the cost of living, with a package worth up to S$1.1 billion ($802 billion). It comes on top of S$1.5 billion of support announced earlier this year.

House prices in the United States have risen to a record high, bringing increases for this year to more than 5%.

Spanish inflation has increased for a second straight month, rising to 3.2% largely as a result of electricity and fuel costs.

German inflation, meanwhile, is on course to slow, according to regional figures. In North Rhine-Westphalia, inflation in September dropped to 4.2% on the year, compared to 5.9% in August.

A revision of UK GDP data suggests the country’s GDP has grown more than previously estimated since the pandemic. The UK’s economy was 1.8% larger in the second quarter of this year compared with the final quarter of 2019, the Office for National Statistics says.

Vietnam’s economy grew 5.33% on the year in the three months to the end of September, driven by growth in manufacturing and exports.

The European Central Bank is exploring the use of AI to help monitor and understand inflation.

Africa is soon set to have the world’s largest working-age population. It also has significant natural resources and a growing consumer class. How can the continent take advantage of its diversity and strengths to boost economic growth?

Access to financial services might have improved, but financial literacy is still lagging behind. A recent series of roundtables, hosted by the World Economic Forum and the University of Cambridge, offered insights and lessons on building literacy.

What will drive job creation and shape the workforce of the future in Central Asia? Green jobs and investment in upskilling and reskilling will be key.