Global News Post: Crisis

Four Major Risks Confront Debt-Stricken Europe In 2012

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</b></span></div><div class="MsoNormal" style="text-align: justify;"><b><span style="background: white; font-family: "Trebuchet MS"; font-size: 8.0pt;">An NNN-Xinhua News Analysis<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><st1:city w:st="on"><span style="background: white; font-family: "Trebuchet MS";">BEIJING</span></st1:city><span style="background: white; font-family: "Trebuchet MS";"> (NNN-XINHUA) -- With the sovereign debt and banking crises in <st1:place w:st="on">Europe</st1:place> accelerating, most eurozone economies have suffered a marked slowdown in economic growth, casting clouds over the economic outlook for 2012.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Analysts predict that the <st1:place w:st="on">Europe</st1:place> debt crisis faces four major risks -- a double-dip recession, a downgrade of sovereign credit ratings, the nkage or breakup of the euro zone, and an acute banking crisis.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b><span style="background: white; font-family: "Trebuchet MS";">RISK 1: A DOUBLE-DIP RECESSION<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">International institutions have mostly adopted a negative viewpoint on the European economy by downgrading their projections on economic growth since the end of 2011.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">The European Central Bank (ecb) projected economic growth of minus 0.4 per cent to 1.0 per cent for the euro zone, compared with its previous estimate of 1.3-per cent growth.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Similarly, the Organization for Economic Co-operation and Development (OECD) has forecast negative quarter-on-quarter growth in the first three months of 2012 for the euro zone.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">OECD Chief Economist Pier Carlo Padoan warned in an interview with Xinhua that there are major negative events in the euro area such as liquidity defaults and a significant credit crunch. Those troubles, Padoan said, may spark a generalized contagion and generate an impact on the real economy that could cause severe recession in 2012 and 2013.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Credit rating agency Standard & Poor's was also pessimistic about the outlook for the eurozone economy. It has warned that a mild recession has a 60-percent probability while there is a 40 per cent chance of a more severe slowdown.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">"Europe's approaching recession first took hold in <st1:country-region w:st="on">Spain</st1:country-region>, <st1:country-region w:st="on">Portugal</st1:country-region>, and <st1:country-region w:st="on">Greece</st1:country-region>, and the economic woes are now spilling over into the eurozone's core of <st1:country-region w:st="on">France</st1:country-region> and <st1:country-region w:st="on">Germany</st1:country-region>," said Jean-Michael Six, Standard & Poor's chief <st1:place w:st="on">Europe</st1:place> economist.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Christine Lagarde, THE Managing Director of the International Monetary Fund (IMF), warned in mid-December last year that no country is immune from an "escalating" eurozone crisis and each must act to head off the risk of a global depression.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">"It is not a crisis that will be resolved by one group of countries taking action. It is going to be hopefully resolved by all countries, all regions, all categories of countries actually taking action," Lagarde said.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">The IMF also cautioned that it is likely to cut its 2012 growth projections as the world economy struggles with a worsening two-year eurozone debt crisis and sluggish growth in the <st1:place w:st="on"><st1:country-region w:st="on">United States</st1:country-region></st1:place>.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b><span style="background: white; font-family: "Trebuchet MS";">RISK 2: A DOWNGRADE OF SOVEREIGN CREDIT RATING<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Since October, the top three international rating agencies -- Moody's,Standard & Poor's and Fitch Ratings -- have issued warnings that in view of the severe economic situation in the euro zone, most economies in the area appear unlikely to maintain their current credit ratings.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">As the second largest economy in the euro zone, <st1:place w:st="on"><st1:country-region w:st="on">France</st1:country-region></st1:place> is most vulnerable to the impact of the economic woes and faces the loss of its prized AAA credit rating.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">An envisioned downgrade of <st1:place w:st="on"><st1:country-region w:st="on">France</st1:country-region></st1:place>'s credit rating would be an indication of the escalation of the European sovereign debt crisis, which is spilling over into the eurozone's core.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">A chain reaction would likely be set off should <st1:place w:st="on"><st1:country-region w:st="on">France</st1:country-region></st1:place> be downgraded. First, there would probably be an increase in the cost of the French government's financing followed by a downgraded credit rating for the European Financial Stability Facility and a possible downgrade of credit ratings for banks and enterprises.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Under such circumstances, European nations and enterprises would be caught in dire straits with no financing sources or government bailouts.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Zhou Hong, director of the <st1:placetype w:st="on">Institute</st1:placetype> of <st1:placename w:st="on">European Studies</st1:placename> of the <st1:place w:st="on"><st1:placename w:st="on">Chinese</st1:placename> <st1:placetype w:st="on">Academy</st1:placetype></st1:place> of Social Sciences, said the most urgent challenge facing the euro zone is how to pay off the enormous debt falling due while the yields of government bonds remain high and refinancing sources scarce.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">The latest data released by international financial data providers show that in 2012 the eurozone governments have to settle a debt of 1.1 trillion euros (1.4 trillion USD), including about 300 billion euros coming due in the first quarter of the year.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b><span style="background: white; font-family: "Trebuchet MS";">RISK 3: THE NKAGE OR BREAKUP OF THE EUROZONE<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">The German news weekly Der Spiegel reported Saturday that the IMF has growing doubts about <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place>'s long-term ability to reduce its debts.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">The Greek government needs to accelerate its consolidation of public debts or else private creditors will see nking returns, the magazine reported.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">In an interview with <st1:place w:st="on"><st1:country-region w:st="on">Britain</st1:country-region></st1:place>'s Sunday Telegraph newspaper, Peter Sands, chief executive of Standard Chartered bank, said the world economy enters 2012 "with a very difficult outlook for the euro zone ... with an increasing possibility of countries actually leaving the euro zone".<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">In a prospectus released after UniCredit announced that it was selling shares to meet new capital requirements, the top Italian bank warned that if the eurozone crisis worsens the risk that the euro may be abandoned.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">"Concerns that the eurozone sovereign debt crisis could worsen may lead to the re-introduction of national currencies in one or more eurozone countries or, in particularly dire circumstances, the abandonment of the euro," the bank said.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">The breakup of the region's currency is now "somewhat likely," said Paul Vrouwes, who helps oversee about 12 billion euros of shares at ING Investment Management in <st1:place w:st="on"><st1:city w:st="on">The   Hague</st1:city></st1:place>.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">"In the past six months the possibility of a breakup has risen significantly from an event that was not likely," Vrouwes said. "I expected more companies to add this risk factor" in their offer documents.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">According to media reports, <st1:place w:st="on"><st1:country-region w:st="on">Britain</st1:country-region></st1:place> is drawing up contingency plans in the event of a eurozone breakup and some European banks have already set out to make preparations for the possible breakup.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b><span style="background: white; font-family: "Trebuchet MS";">RISK 4: AN ACUTE BANKING CRISIS<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">With the ripples of the European debt crisis still spreading, commercial banks in <st1:place w:st="on">Europe</st1:place> are sure to suffer because they hold an enormous amount of government bonds.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Statistics show that coming due in 2012 are commercial bank-held government bonds worth 721 billion euros (929.3 billion USD), including 250 billion euros (322.8 billion USD) in bonds that need to be repaid in the first quarter.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">European banks are feeling the credit crunch as investors become wary of investing in their bonds due to continued uncertainty over the impact of the sovereign debt crisis on their balances.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">Data released by Dealogic shows that European banks sold 413 billion USD worth of bonds in 2011, equivalent to just two-thirds of the 654 billion USD due to be returned to investors in 2011 as the debts mature.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">On Dec. 22, the European Central Bank injected a record 489.19 billion euros (641 billion USD) into eurozone banks via its first-ever three-year refinancing operation. The effort raised hopes that a credit crunch could be avoided and that the added money would be used to buy Italian and Spanish bonds.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">A week later, however, due to a lack of confidence in the market, commercial banks put their idle funds back to the European Central Bank, pushing their overnight deposits at the ECB to a record 452 billion euros (588 billion USD).<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">In addition, European leaders agreed at a summit to strengthen capital adequacy rules for European banks. In order to raise their capital adequacy ratios to 9.0 per cent by July, commercial banks have chosen to sell their assets and tighten credit.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; font-family: "Trebuchet MS";">The European economy is likely to be trapped in a vicious cycle if the nking real economy doesn't have credit support from the banking industry. -- NNN-XINHUA<o:p></o:p></span></div></div>

Four Major Risks Confront Debt-Stricken Europe In 2012

An NNN-Xinhua News Analysis BEIJING (NNN-XINHUA) -- With the sovereign debt and banking crises in Europe accelerating, most eurozone ec...

Sarkozy Lays Out Vision on Eurozone Reforms

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</span></div><div class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "Trebuchet MS"; font-size: 8.0pt;">By Lisa Bryant from <st1:place w:st="on"><st1:city w:st="on">Paris</st1:city></st1:place><o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">French President Nicolas Sarkozy made an impassioned appeal for saving the euro currency union and outlined the broad framework of what he thinks must be done. Sarkozy's speech in the southern city of <st1:city w:st="on">Toulon</st1:city> comes as the clock ticks down to finding a solution to the eurozone crisis, which <st1:country-region w:st="on">France</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">Germany</st1:place></st1:country-region> vow to do.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">President Sarkozy offered a grim assessment about the state of <st1:country-region w:st="on">France</st1:country-region> - and of <st1:place w:st="on">Europe</st1:place> - at a time of shrinking growth, rising deficits and growing fears of the eurozone imploding. He spoke a week ahead of a key summit of European leaders who are facing mounting pressure to come up with a strong, bold and comprehensive solution to the eurozone crisis after what many believe is a series of half measures throughout the year. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">In a televised speech before a packed audience in the industrial city of <st1:city w:st="on">Toulon</st1:city>, Sarkozy tied <st1:country-region w:st="on"><st1:place w:st="on">France</st1:place></st1:country-region>'s future to the 17-nation eurozone. He said the disappearance of the euro currency union would have dramatic consequences on the country, doubling French debt.<span>  </span>Everything would be paralyzed.<span>  </span>The French would be impoverished, he said. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><st1:country-region w:st="on"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">France</span></st1:country-region><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;"> and <st1:country-region w:st="on">Germany</st1:country-region> - <st1:place w:st="on">Europe</st1:place>'s two heavyweights - have vowed to come up with a plan to save the euro by the year's end - most likely by next week's European Union summit. Sarkozy laid out his ideas for dealing with the eurozone debt crisis. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">He said <st1:place w:st="on">Europe</st1:place> needs more solidarity - but he added solidarity also demands fiscal discipline among member nations.<span>  </span>He also pushed for more of what he called "convergence" among eurozone members and for reforming the EU's two-year-old governing <st1:city w:st="on"><st1:place w:st="on">Lisbon</st1:place></st1:city> treaty.<span>  </span><o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">But Sarkozy left out many details - and experts and officials say key differences remain between French and German visions of rescuing the eurozone. <st1:country-region w:st="on"><st1:place w:st="on">Germany</st1:place></st1:country-region> has also been championing stronger fiscal discipline among member nations - to the point of giving European authorities the power to reject national budgets that breach EU rules. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">Experts like Karel Lannoo of the Center for European Policy Studies believe <st1:country-region w:st="on">France</st1:country-region> would reject ceding so much national authority to <st1:place w:st="on">Europe</st1:place>. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">"Whether <st1:country-region w:st="on"><st1:place w:st="on">France</st1:place></st1:country-region> would accept giving away some powers to a super administration - the the EU or to the [European] Commission - is another question," said Lannoo.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">For its part, <st1:country-region w:st="on">Germany</st1:country-region> rejects the idea beefing up the European Central Bank to become a lender of last resort - an idea <st1:country-region w:st="on"><st1:place w:st="on">France</st1:place></st1:country-region> supports. In his speech, Sarkozy left the bank's future open, but said it would remain independent. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">German Chancellor Angela Merkel is outlining her views of <st1:place w:st="on">Europe</st1:place>'s future in a speech before the German parliament on Friday. The two leaders also hold talks on Monday - just three days before the EU summit. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">Whether <st1:place w:st="on">Europe</st1:place>'s leaders will come out with a far-reaching plan to save the currency zone is anybody's guess. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">"It is likely they will come up with something but it depends very much on the details of this plan and the political support of that and on the credibility this plan will have with the markets…and we are running out of time at the moment. So it might be far too late," said analyst Paola Subacchi, of the <st1:city w:st="on"><st1:place w:st="on">London</st1:place></st1:city> think-tank Chatham House.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">But as far is Sarkozy is concerned, the alternative - the implosion of the eurozone - is unthinkable.</span><span style="font-family: "Trebuchet MS";"> ---</span><b><span style="color: #333333; font-family: Arial; font-size: 8.5pt; mso-bidi-font-size: 12.0pt;"> </span></b><span style="font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">VOA News<o:p></o:p></span></div></div>

Sarkozy Lays Out Vision on Eurozone Reforms

By Lisa Bryant from Paris French President Nicolas Sarkozy made an impassioned appeal for saving the euro currency union and outlined the...

India Victim of Eurozone Crisis: Minister Pranab Mukherjee

<div dir="ltr" style="text-align: left;" trbidi="on"><span class="Apple-style-span" style="background-color: white; font-family: arial, helvetica, sans-serif; font-size: 13px;"><st1:city w:st="on"><span style="font-family: 'Trebuchet MS';">NEW DELHI</span></st1:city><span style="font-family: 'Trebuchet MS';"> (NNN-IRNA) -- <st1:country-region w:st="on">India</st1:country-region>’s Finance Minister Pranab Mukherjee on Saturday said <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> is a victim of the Eurozone crisis which is hurting export growth.</span></span><br />
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</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><st1:country-region w:st="on"><st1:place w:st="on"><span style="font-family: 'Trebuchet MS';">India</span></st1:place></st1:country-region><span style="font-family: 'Trebuchet MS';"> victim of Eurozone crisis: Pranab Mukherjee "We are not the makers of that (Eurozone debt) crisis but we are a victim of that crisis," he said at the ET Awards function in Mumbaui, pti reported.<o:p></o:p></span></div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><br />
</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><span style="font-family: 'Trebuchet MS';">Talking about the domestic scenario, the Finance Minister said the economy is facing problems of inflation and rupee depreciation, among other issues.<o:p></o:p></span></div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><br />
</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><span style="font-family: 'Trebuchet MS';">"We have problems of high inflation, rupee depreciation, we have problems because our growth may not be as projected, we have problems whether it would be possible for us to maintain the fiscal deficit target...," he said.<o:p></o:p></span></div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><br />
</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><span style="font-family: 'Trebuchet MS';">Persistent high inflation, coupled with rupee depreciation in the recent times, could derail the government's fiscal deficit target of 4.6 percent of GDP this fiscal.<o:p></o:p></span></div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><br />
</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><span id="yui_3_2_0_14_1322414492547138" style="font-family: 'Trebuchet MS';">Referring to <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>'s exports growth, which slowed to 10.8 percent in October from 36.5 percent in the previous month, he said, "It is bound to happen despite diversification of destination and products."<o:p></o:p></span></div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><br />
</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><span style="font-family: 'Trebuchet MS';">With demand slowdown in US and Europe, which account for <st1:country-region w:st="on">India</st1:country-region>'s 30 percent exports, the government is focusing more on <st1:place w:st="on">Africa</st1:place> and Latin American markets.<o:p></o:p></span></div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><br />
</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><span style="font-family: 'Trebuchet MS';">On the possibility of providing aid to debt-laden Eurozone economies, Mukherjee said let the members in the region first come out with some kind of package.<o:p></o:p></span></div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><br />
</div><div class="MsoNormal" style="font-family: arial, helvetica, sans-serif; text-align: justify;"><span style="font-family: 'Trebuchet MS';">“Let them (Eurozone nations) come out with a package by themselves and then the question of supplementary finance through international organizations could be thought of and we would also like to make our own contribution in that process," he said. --NNN-IRNA</span></div></span></div>

India Victim of Eurozone Crisis: Minister Pranab Mukherjee

NEW DELHI (NNN-IRNA) -- India ’s Finance Minister Pranab Mukherjee on Saturday said India is a victim of the Eurozone crisis which is hu...

Europe's Debt Crisis: Spain, France Face Higher Borrowing Costs

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</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; font-size: 12.0pt;">The European debt crisis touched <st1:country-region w:st="on">Spain</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">France</st1:place></st1:country-region> Thursday, with both countries now forced to pay more to finance their governments.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><st1:country-region w:st="on"><span style="font-family: "Trebuchet MS"; font-size: 12.0pt;">Spain</span></st1:country-region><span style="font-family: "Trebuchet MS"; font-size: 12.0pt;">, <st1:place w:st="on">Europe</st1:place>'s fourth biggest economy, sold nearly $5 billion in government bonds Thursday at a big 7 percent interest rate. That is the same rate that Greek, Irish, and Portuguese bonds hit before those countries were forced to ask for bailouts. But Spanish Finance Minister Elena Salgado says the country is "absolutely not at risk" of needing a bailout.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; font-size: 12.0pt;">Also Thursday, French government bonds were selling at an interest rate more than double what <st1:country-region w:st="on"><st1:place w:st="on">Germany</st1:place></st1:country-region> pays even though both countries have the same top AAA credit ratings.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; font-size: 12.0pt;">Governments sell bonds to investors to raise revenue. The higher the interest rate, the more those governments have to pay back the investors when the bonds mature.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; font-size: 12.0pt;">With investors worried about the spread of the European debt crisis, stocks fell Thursday in <st1:city w:st="on">London</st1:city>, <st1:city w:st="on">Paris</st1:city> and <st1:place w:st="on">Frankfurt</st1:place>. <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> stocks were also sharply lower Thursday. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS"; font-size: 12.0pt;">In <st1:city w:st="on"><st1:place w:st="on">Athens</st1:place></st1:city> Thursday, masked youths threw firebombs at police, who responded with tear gas and stun grenades. It was the first major rally against the new Greek coalition government of Prime Minister Lucas Papademos. His government is seeking to impose spending cuts, eliminate government jobs, and increase taxes as it tries avoid bankruptcy with the next $11 billion installment of last year's bailout. ----VOA News<o:p></o:p></span></div></div>

Europe's Debt Crisis: Spain, France Face Higher Borrowing Costs

The European debt crisis touched Spain and France Thursday, with both countries now forced to pay more to finance their governments. Sp...

Post-Global Financial Crisis, Major Global Economies are Facing an Uphill Task in Engineering their Recovery

<div dir="ltr" style="text-align: left;" trbidi="on"><div align="center" class="MsoNormal" style="text-align: center;"><st1:country-region w:st="on"><st1:place w:st="on"><b><span style="font-family: 'Trebuchet MS'; font-size: 12pt;"><br />
India</span></b></st1:place></st1:country-region><b><span style="font-family: 'Trebuchet MS'; font-size: 12pt;"> Fully Geared-up to face the Evolving Challenges of a Globalized World, says the Finance Minister<o:p></o:p></span></b><br />
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<tr><td class="tr-caption" style="text-align: center;"><div align="center" class="MsoNormal" style="text-align: center;"><i><span style="font-family: 'Trebuchet MS'; font-size: 8pt;">The Union Finance Minister, Shri Pranab Mukherjee delivering the inaugural address at a conference on Global Economy and the Role of Banking Sector, in Kolkata.  PIB Photo<o:p></o:p></span></i></div><div align="center" class="MsoNormal" style="text-align: center;"><br />
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</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS'; font-size: 12pt;">The Union Finance Minister Shri Pranab Mukherjee said that <st1:place w:st="on"><st1:country-region w:st="on">India</st1:country-region></st1:place> today is among the fastest growing economies and widely believed to be steadily on the course to occupy a place among the top three economies of the world by the year 2050. However, the Finance Minister Shri Mukherjee cautioned that the recent developments in Euro-zone have heightened uncertainty in financial markets through-out the world. As a result, <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>’s short-term growth prospects have also been impacted, the Minister added. The Finance Minister Shri Mukherjee said that the post-global financial crisis, the world has seen most major economies facing an uphill task in engineering their recovery. He said that they are variously affected by concerns ranging from high unemployment, declining incomes, inflation and issues related to sovereign debt.  He said that we could come out of the crisis without any major economic dislocation and recovered our growth momentum rapidly. The Finance Minister Shri Mukherjee said that our government gave a new thrust and direction to the economy. He said that we deregulated domestic industry, liberalized trade and production and gradually opened-up the economy to foreign competition and capital.  As we geared-up to face the evolving challenges of a globalizing world, we remained committed to the cause of social justice and ensuring fulfillment of basic needs for the poor and the vulnerable segments of our population, the Minister added.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS'; font-size: 12pt;">The Finance Minister Shri Mukherjee was speaking here in Pragati Maidan today after inaugurating the 31st India International Trade Fair (IITF).The Union Finance Minister Shri Pranab Mukherjee said that IITF is <st1:country-region w:st="on">India</st1:country-region>’s premier trade fair that showcases <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>’s capabilities and achievements across a broad canvas of sectors. Indeed, this international fair is witness to the unfolding of <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>’s economic development over the past three decades, the Minister added. He said that as an event it has become popular and grown from strength to strength. Shri Mukherjee said that one person whose vision has brought us here is our first Prime Minister, Pt. Jawaharlal Nehru. It is therefore only appropriate that the IITF opens every year on his birth anniversary, he added.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS'; font-size: 12pt;">The Union Finance Minister Shri Pranab Mukherjee said that <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>’s export sector has performed well this year. As per the recent export data, the growth of merchandise exports during first six months of 2011-12 is 52 per cent, he added. Shri Mukherjee said that he must add that the tendency of some developed counties to resort to protectionist measures in the face of downturn of their economies is a matter of concern.                                                <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS'; font-size: 12pt;">The Union Finance Minister Shri Pranab Mukherjee said that our experience of the past couple of decades indicates that the globalised world of present times offers incredible opportunities, but also poses enormous challenges. He said that if the years before the global financial crisis in 2008 presented the prosperity that comes with globalisation, the distressing economic dislocation in the aftermath of the crisis, in several countries, demonstrated its lasting costs. Indeed, the efforts currently underway to reform the international and national policy regimes to better manage the forces of globalisation, in serving the collective well-being of people, have to be sustained and pursued to their logical end, the Minister added.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS'; font-size: 12pt;">The Union Finance Minister Shri Pranab Mukherjee said that the performance of our economy over the last two decades is a testimony to the success of the policy measures initiated since the economic reforms of early 1990s. He said that the Indian manufacturing sector has come of age and is making its presence felt globally in sectors like the automobile and auto components, pharmaceuticals, textiles and steel. The changing composition of our exports in favour of engineering goods is an indication of that fact. The Finance Minister said that large service sector is helping us absorb domestic shocks and uncertainties associated with a monsoon-dependent agrarian economy. The agriculture diversification has added to its resilience in the face of uneven and delayed monsoons in the recent past. The agriculture year 2010-11 has seen production touch a new high, the Minister added.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS'; font-size: 12pt;">The Union Finance Minister Shri Pranab Mukherjee said that he is happy to note that this year’s theme of IITF- “Indian Handicraft- the Magic of the Gifted Hands” has brought together several hundred such enterprises from all parts of the country to display their goods at the fair. He extended his greetings and good wishes to all participants and visitors in the 31st India International Trade Fair. Later, he declared the fair open. The Union Commerce Minister Shri Anand Sharma was also present on the occasion among others ---PIB<o:p></o:p></span></div></div>

Post-Global Financial Crisis, Major Global Economies are Facing an Uphill Task in Engineering their Recovery

India Fully Geared-up to face the Evolving Challenges of a Globalized World, says the Finance Minister The Union Finance Minister, Sh...

Debt Crisis: US, Europe Stocks Plunge, Borrowing Costs Rise

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<div class="MsoNormal" style="text-align: justify;">Major U.S. and European stock exchanges plunged Wednesday and <st1:country-region w:st="on"><st1:place w:st="on">Italy</st1:place></st1:country-region>'s borrowing costs jumped, as the long shadow of the continent's debt crisis consumed the Greek and Italian governments.<span> </span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Key stock markets in <st1:state w:st="on">New York</st1:state>, <st1:city w:st="on">London</st1:city>, <st1:city w:st="on">Paris</st1:city> and Frankfurt all slid more than two percent, in part due to the political uncertainty in <st1:city w:st="on">Athens</st1:city> and <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city>.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Late in the day, outgoing Greek Prime Minister George Papandreou told a national television audience that he and opposition lawmakers had reached an agreement on a coalition government. The interim government will now have to carry out austerity measures demanded by the country's international creditors.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Mr. Papandreou pledged that <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place> would do “whatever is required to remain” in the 17-nation bloc that uses the euro currency, and that the coalition government signals “a new future for our country.”<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Meanwhile, the Italian government faced record-high borrowing costs the day after Prime Minister Silvio Berlusconi said he would resign as soon as Parliament enacts budget cuts. The spending reforms are aimed at cutting the <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place> government's massive debt in hopes of avoiding the need for an international bailout.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Interest rates on Italian government bonds topped 7 percent for the first time since the advent of the euro currency in 1999. That percentage rate is the threshold at which <st1:country-region w:st="on">Greece</st1:country-region>, <st1:country-region w:st="on">Ireland</st1:country-region> and <st1:place w:st="on"><st1:country-region w:st="on">Portugal</st1:country-region></st1:place> all were forced to secure international bailouts in the last year and a half.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Greek news accounts said that 60-year-old Parliament chief Filippos Petsalnikos has been tapped as the interim prime minister after early speculation had centered on Lucas Papademos, an economist and former vice president of the European Central Bank.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>Mr. Papandreou and opposition leader Antonis Samaras had been locked in talks since Monday on who will lead a power-sharing government until early elections, tentatively scheduled for February 19, are held.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>The European Union demanded that both Mr. Papandreou's socialists and Samaras' opposition New Democracy party sign a written commitment to carry out the austerity measures as part of the debt-relief plan approved for <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place> last month. Samaras balked at a written statement, calling it an insult to “national dignity” and insisting his verbal assent to the plan should be sufficient. It was not immediately known whether the dispute was resolved.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>European finance ministers are waiting for the formation of a new government in <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> before deciding whether to grant the country a crucial $11 billion loan installment.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>In <st1:country-region w:st="on">Italy</st1:country-region>, one opposition lawmaker, Giuseppe Fiorini, said the country needs a government that can give <st1:place w:st="on"><st1:country-region w:st="on">Italy</st1:country-region></st1:place> “international credibility,” something he said Mr. Berlusconi has not been able to do.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span>One government debt analyst in <st1:place w:st="on"><st1:city w:st="on">London</st1:city></st1:place>, Jan Randolph of IHS Global Insight, said investor concerns about the safety of Italian debt will not abate “until a solid and stable government actually implements austerity and undertakes reforms.”--- VOA News<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
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Debt Crisis: US, Europe Stocks Plunge, Borrowing Costs Rise

Major U.S. and European stock exchanges plunged Wednesday and Italy 's borrowing costs jumped, as the long shadow of the continent'...

Greek Cabinet Backs Papandreou Plan for Referendum on Debt Plan

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<tr><td class="tr-caption" style="text-align: center;"><h1 style="line-height: 15.6pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 7.5pt;"><i><span style="background-attachment: initial; background-clip: initial; background-color: #fefefe; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; font-family: Arial; font-size: 7pt;">Greek Prime Minister <span> </span>©<a href="http://www.flickr.com/photos/worldeconomicforum/5393266681/"><span><span class="Apple-style-span" style="color: black;">flickr.com/worldeconomicforum</span></span></a><o:p></o:p></span></i></h1></td></tr>
</tbody></table><div class="MsoNormal" style="text-align: justify;">Greek Cabinet ministers are giving their support for Prime Minister George Papandreou's plan to hold a referendum on the European Union debt relief deal.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A Greek government spokesman said after a marathon Cabinet meeting early Wednesday that a public vote would come as soon as possible after the details of the latest debt agreement are worked out.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Mr. Papandreou's announcement stunned the world Tuesday and sent global markets plunging as investors reacted to a major jolt of uncertainty in the European economy. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">The prime minister told his Cabinet that Greeks would be asked whether they want to keep using the euro currency. He said any deal will only be implemented with the consent of the Greek people, and that he hopes any turmoil caused by his unexpected announcement will be only temporary. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A number of lawmakers in the prime minister's Socialist Party oppose an up-or-down public vote. Some party members are demanding Mr. Papandreou's resignation, and his government faces a no-confidence vote Friday in Parliament. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Mr. Papandreou has strongly supported the European Union plan to cut <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>'s debt, which would obligate severe domestic spending cuts and tax hikes. It also would eliminate jobs now held by thousands of public employees.<span>  </span><o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Terms of the latest deal offered by the EU call for European banks to forgive 50 percent of <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place>'s debt. That appeared to calm nervous markets at first, but then Mr. Papandreou told Socialist lawmakers Tuesday that he will honor results of the referendum.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">EU leaders Herman Van Rompuy and Jose Manuel Barroso said they "fully trust" <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> to uphold last week's eurozone debt-relief agreement.<span>  </span>French President Nicolas Sarkozy said letting people vote is "always legitimate," but that a Europe-wide agreement is the only possible way to resolve the debt crisis. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">World Bank president Robert Zoellick said that if voters reject the plan, "It's going to be a mess." <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Mr. Sarkozy and German Chancellor Angela Merkel plan to meet Wednesday in <st1:city w:st="on">Cannes</st1:city>, <st1:country-region w:st="on">France</st1:country-region>, with leaders from the International Monetary Fund and <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place> to discuss the latest snag in solving the continent's debt crisis. ---VOA News</div></div>

Greek Cabinet Backs Papandreou Plan for Referendum on Debt Plan

Greek Prime Minister © flickr.com/worldeconomicforum Greek Cabinet ministers are giving their support for Prime Minister George Pap...

U.S. birth rates decline amid recession - report

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<tr><td class="tr-caption" style="text-align: center;"><div align="center" class="MsoNormal" style="text-align: center;"><i><span style="font-family: 'Trebuchet MS'; font-size: 8pt;">Meanwhile, the <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place> population keeps growing due to a steady<o:p></o:p></span></i></div><div align="center" class="MsoNormal" style="text-align: center;"><i><span style="font-family: 'Trebuchet MS'; font-size: 8pt;">influx of immigrants from all over the world who seek better life in <st1:place w:st="on"><st1:country-region w:st="on">America</st1:country-region></st1:place><o:p></o:p></span></i><br />
<i><span style="font-family: 'Trebuchet MS'; font-size: 8pt;"><st1:place w:st="on"><st1:country-region w:st="on">Photo: </st1:country-region></st1:place></span></i><i><span style="font-family: "Trebuchet MS"; font-size: 8.0pt;"><a href="http://www.flickr.com/photos/crobj/3234064928/sizes/z/"><span style="text-decoration: none;">© flickr.com/srqpix</span></a></span></i><br />
<div class="MsoNormal" style="text-align: justify;"><i><span style="font-family: "Trebuchet MS"; font-size: 8.0pt;"><o:p></o:p></span></i></div></div></td></tr>
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<div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">MOSCOW, October 14 (RIA Novosti)-</span><i><span style="font-family: 'Trebuchet MS'; font-size: 8pt;"> </span></i><span style="font-family: 'Trebuchet MS';">A sharp drop in birth rates in the United States in the past few years reflects economic recession in the country that started in 2008, a U.S. think tank said.</span><i><span style="font-family: 'Trebuchet MS'; font-size: 8pt;"><o:p></o:p></span></i></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">According to a report released by the <st1:place w:st="on"><st1:placename w:st="on">Pew</st1:placename>  <st1:placename w:st="on">Research</st1:placename> <st1:placetype w:st="on">Center</st1:placetype></st1:place> on October 12, births have been declining since 2007, when a record high number of births - 4,316,233 - was registered.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">“Provisional data show that in 2010 births numbered just over 4 million,” the report says, citing an analysis of multiple economic and demographic data sources.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">The analysis has also found evidence of a correlation between the souring economy and fertility declines by race and ethnicity.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">“Hispanics, whose employment levels and household wealth were particularly hard hit by the Great Recession, have experienced the largest fertility declines of the nation’s three major racial and ethnic groups,” the report says.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">According to the report from 2008 to 2009, birth rates dropped by 5.9% among Hispanic women, by 2.4% among black women and by 1.6% among white women.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Meanwhile, the <st1:country-region w:st="on">U.S.</st1:country-region> population keeps growing due to a steady influx of immigrants from all over the world who seek better life in <st1:country-region w:st="on"><st1:place w:st="on">America</st1:place></st1:country-region>, the report notes.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">The <st1:placename w:st="on">Pew</st1:placename> <st1:placename w:st="on">Research</st1:placename> <st1:placetype w:st="on">Center</st1:placetype> is a nonpartisan "fact tank" that provides information on the issues, attitudes and trends shaping <st1:country-region w:st="on"><st1:place w:st="on">America</st1:place></st1:country-region> and the world. It was established in 2004 as a subsidiary of The Pew Charitable Trusts, a Philadelphia-based public charity.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
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U.S. birth rates decline amid recession - report

Meanwhile, the U.S. population keeps growing due to a steady influx of immigrants from all over the world who seek better life in Americ...