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International Business News
Inflation in advanced economies drops to 0.1 pc: OECD
AFP, Paris
Inflation in advanced economies dropped to 0.1 percent in the 12 months to the end of May. but US and Japanese prices fell marking deflation and eurozone prices showed zero change, OECD data showed on Tuesday.
In the United Stales, prices fell by 13 percent over 12 months, showing deflation for the third month running.
And in Japan, prices fell by 1 I percent over 12 months, to show the fouth- month running of decline.
In the eurozone, prices over 12 months in May showed zero increase from a rise of 0.6 percent in April, and the monthly increase was 0.1 percent.
The data for the 30-nation Organisation for Economic Cooperation and Devlopment (OECD) showed the 12-month change slowing sharply from 0.6-percent inflation over 12 months to April.
In the month of May, OECD-area consumer prices rose by 0.2 percent, which was the same increase as in April.
Other 12 month figures showed inflation of 2.2 percent in Britain, 0.9 percent in Italy, 0.1 percent in Canada, zero change in Germany and a fall of 0.3 percent in France.
The OECD noted that in the 12 months to May, consumer prices for energy fell by 16.2 percent following a decline of 13.5 percent in the 12 months to April, but food prices rose by 2.7 percent after a 3.4-percent rise in April.
Irish economy shrinks 8.5pc in first quarter
AFP, Dublin
Ireland's economy shrank 8.5 percent in the first quarter of 2009 compared to the same period in 2008, as the eurozone member was hammered by the financial crisis, official data showed Tuesday.
"Compared with the corresponding quarter of 2008, GDP (gross domestic product) at constant prices was 8.5 percent lower while GNP was 12.0 per cent lower," the Central Statistics Office said in a statement.
GNP -- gross national product - is regarded as a more accurate barometer of the country's economic performance as it strips out substantial repatriated foreign investment profits.
The former "Celtic Tiger" economy was savaged by the global financial crisis and the collapse of a domestic property bubble. Last September it became the first eurozone member to fall into recession in the current downturn.
The nation is also suffering from soaring unemployment and tumbling retail sales.
The International Monetary Fund had painted a bleak picture last week of the "unprecedented economic correction" facing Ireland.
"The stress exceeds that being faced currently by any other advanced economy and matches episodes of the most severe economic distress in post-World War 11 history." itsaid.
Kosovo joins IMF, World Bank
AFP, Washington
Kosovo joined the International Monetary Fund and the World Bank on Monday, becoming the 186th member of the multilateral institutions a little more than a year after independence.
Kosovo President Fatmir Sejdiu and Prime Minister Hashim Thaci signed the institutions' articles of agreement at the US State Department.
The accession marks a milestone for recognition of the tiny country, one of Europe's poorest, as an independent state.
Since ethnic Albanian-majority Kosovo broke away from Serbia and became independent on February 17, 2008,60 countries - including the United States and 22 of the European Union s 27 member nations - have recognized its independence.
Serbia is backed by ally Russia in its opposition to the secession, which it considers a breach of international law.
"We will do our best to be worthy to be equal to all of the rest of the world," Kosovo's finance minister, Ahmet Shala, said at a news conference at the IMF headquarters.
Protectionism on rise in China, says EU business group
AFP, Betjing
Chinese protectionism is on the rise, the European Chamber of Commerce in China warned Tuesday, as Beijing moves to fend of criticism that it is favouring its own firms over foreigners.
The chamber said a survey covering 313 European enterprises showed that 43 percent expected local governments to favour businesses in their own areas in hopes of boosting the economy, it said.
"Our question is, 'is protectionism on the rise?' Yes, we see that on the rise," Joerg Wuttke, president of the chamber, told reporters in Beijing.
Many foreign firms arc placed at a disadvantage when bidding for projects in China, even though they are based in the country and have invested large sums of money there, the chamber said.
" They don't have the same possibility even though they are... 'built in China, made in China and employing Chinese employees'," Wuttke said.