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International Business News
Output dives at Japan factories, car plants
AFP, Tbkyo
Japan's factory’ output and auto production have plunged for a fifth straight month, data showed Monday, as the government pledged to revive the recession-hit economy with more stimulus spending.
As demand for Japanese goods dried up at home and abroad, industrial output from the world's number-two economy fell more than nine percent in February from a month earlier.
The auto industry later released figures showing production had more than halved year on year.
The data added to the gloom over Japan's economy, which shrank at an annualised pace of 12.1 percent in the last quarter of2008 and is widely believed to be headed for its worst recession sinceWorld War II.
Corporate giants such as Toyota and Sony, as well as a host of smaller firms, have slashed tens of thousands of jobs, and analysts predict the unemployment rate, due to be announced Tuesday, rose to 4.3 percent in February.
And with consumer prices flat, Japan is bracing for another bout of deflation that would hit already struggling businesses harder.
OECD fears 4.3pc contraction in 2009, urges 'quick action1
AFP, Rome
The Organisation for Economic Cooperation and Development on Monday urged "quick and decisive action" to restore global growth while warning that the OECD economies may shrink 4.3 percent this year.
OECD chief Angel Gurria made die new negative grow th prediction for industrialised nations at a Group of Eight "social summit" on the human cost of the world financial crisis, Italy's ANSA and Radiocor news agencies reported.
Warning of a "fully-blown social crisis with scarring effects on vulnerable workers and low-income households," Gurria urged "quick and decisive action" in his speech to the G8 labour ministers plus those of six emerging nations.
He added: "Restoring global growth is an economic and political priority, but also an ethical, moral, social and human imperative."
The three-day Rome meeting comes amid dire warnings of social unrest and follows protests in several European cities ahead of a summit of the Group of 20 developed and developing nations on the financial crisis, set for Thursday in London.
Bahraini businessmen protest expat tax
AFP, Manama
Hundreds of owners of small businesses in Bahrain demonstrated on Sunday in protest against a monthly tax they have to pay for each expatriate worker they hire.
The businessmen, many of them construction contractors, are unhappy with the ten dinars (26.5 dollars) per person monthly fee imposed on them by the Market Regulatory Authority, a government body, for their expatriateemployees.
More than 1,000 business leaders took part in Sunday's protest, Ali Marhoun, head of the contractors’ association, told AFP.
"Our main demand is the abolition of this monthly fee of ten dinars for every foreign worker we have, and the expulsion of the workers who are not tied to an employer," Marhoun said.
Some workers meet their own entry tariffs and avoid being tied to one job, which spares their subsequent employers from paying any fees.
Meanwhile the small business owners pay 533 dollars per work permit for each tied employee they hire.
The new tax was introduced in July to encourage business owners to hire Bahrainis instead of foreigners.
Russian economy to shrink 4.5pc in 2009: World Bank
AFP, Moscow
Russia's economy will contract 4.5 percent in 2009 due to the global financial crisis, the World Bank said on Monday, calling on the country to lessen its dependence on oil exports.
"With a much worse global financial outlook and oil prices in the 45 dollars a barrel range, Russia’s economy is likely to contract by 4.5 percent in 2009, with further downside risks," the Bank said in its latest report on Russia.
The World Bank blamed the acceleration of the slowdown in Russia in 2009 on the decline in global demand, the fall in commodity prices and the tightening of credit available to companies.
The forecast is considerably more pessimistic than that of the Russian government, which is predicting a contraction of 2.2 percent in GDP in 2009.
I he World Bank had in November predicted growth in Russia in 2009 of three percent and the slash in its forecast underlined how the medium term outlook has darkened over the last quarter.