Economy

Global

Economic trends that provide information and resources globally, domestically, and within the field of corrections.

2018 and newer

This site shows the monthly and quarterly US employment data from the U.S. Bureau of Labor Statistics (BLS) for 2020.

The COVID-19 pandemic is inflicting high and rising human costs worldwide, and the necessary protection measures are severely impacting economic activity. As a result of the pandemic, the global economy is projected to contract sharply by –3 percent in 2020, much worse than during the 2008–09 financial crisis. In a baseline scenario--which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound—the global economy is projected to grow by 5.8 percent in 2021 as economic activity normalizes, helped by policy support. The risks for even more severe outcomes, however, are substantial.

Real gross domestic product (GDP) increased in all 50 states and the District of Columbia in the fourth quarter of 2020, as real GDP for the nation increased at an annual rate of 4.3 percent, according to statistics released by the U.S. Bureau of Economic Analysis. The percent change in real GDP in the fourth quarter ranged from 9.9 percent in South Dakota to 1.2 percent in the District of Columbia (table 1).

Having a global pandemic steamroll its way through a state’s economy is no one’s good idea of enacting budgetary restraints. But facing reality is not optional. Texas has faced budget tightening in its corrections system before. So, legislators must address this situation in a similar fashion— by once again prioritizing finite resources while, this time, seeking to get a handle on a costly, aging prison population and reducing technical violations that undermine the entire purpose of community supervision in the first place.

 

Revenues received by the federal government in 2020 totaled $3.4 trillion, of which $1.6 trillion was receipts from individual income taxes.

Chances are that you believe you are in the middle class—nearly everyone in the United States does. Doctors and lawyers believe they are middle-class; so, too, do welders and waiters. In a 2015 Pew survey, only 10 percent of Americans said they considered themselves lower-class and just 1 percent thought they were upper-class.

Earnings have been flat or stagnant for many middle-class workers in the United States while health care, education, and housing costs are rising. Surveys show that Americans accurately perceive these pressures too and share a broad belief that the middle class is struggling. Seven in ten respondents to a Northwestern Mutual survey said that the middle class was staying the same or shrinking. One-third said the middle class might disappear entirely.

Mandatory spending by the federal government totaled $4.6 trillion in 2020, of which $1.9 trillion was for Social Security and Medicare.

Every state experienced an uptick in total personal income last year as historic gains in unemployment benefits, federal aid, and other public assistance drove the sharpest annual growth in two decades. Without government support, most states would have sustained declines in personal income—a key economic indicator—as the COVID-19 pandemic took a toll on business activity.

The federal deficit in 2020 was $3.1 trillion, equal to 14.9 percent of gross domestic product.

Discretionary spending by the federal government totaled $1.6 trillion in 2020, of which $714 billion was for national defense and $914 billion was for nondefense activities.

CBO presents its projections of what federal deficits, debt, spending, and revenues would be for the next 30 years if current laws governing taxes and spending generally did not change.

In this document, the Commission continues to comprehensively reform inmate calling services rates to ensure just and reasonable rates for interstate and international inmate calling services. Specifically, the Commission proposes to lower the current interstate rate caps to $0.14 per minute for debit, prepaid, and collect calls from prisons and $0.16 per minute for debit, prepaid, and collect calls from jails. The Commission also proposes to cap rates for international inmate calling services, which remain uncapped today.

The high cost of calling home from prisons and jails gets a lot of attention in the press, but the industry’s practice of tacking on hidden fees is getting an increasing amount of attention from regulators and the savviest correctional facilities. These fees can be called by a variety of different names and can add up to significant costs to the families of people in prison. The problem got so bad that the companies were potentially making more from fees than from selling their product — phone calls.

Visualizing the Top 50 Most Valuable Global Brands

For many brands, it has been a devastating year to say the least.

Over half of the most valuable global brands have experienced a decline in brand value, a measure that takes financial projections, brand roles in purchase decisions, and strengths against competitors into consideration. But where some have faltered, others have asserted their dominance and stepped up for their customers like never before.

 

Near-term global financial stability risks have been contained as an unprecedented policy response to the coronavirus (COVID-19) pandemic has helped avert a financial meltdown and maintain the flow of credit to the economy. For the first time, many emerging market central banks have launched asset purchase programs to support the smooth functioning of financial markets and the overall economy. But the outlook remains highly uncertain, and vulnerabilities are rising, representing potential headwinds to recovery. The report presents an assessment of the real-financial disconnect, as well as forward-looking analysis of nonfinancial firms, banks, and emerging market capital flows. After the outbreak, firms’ cash flows were adversely affected as economic activity declined sharply.

Following its weakest performance since the global financial crisis, the world economy is poised for a modest rebound this year– if everything goes just right.

Hanging over this lethargic recovery are two other trends that raise questions about the course of economic growth: the unprecedented runup in debt worldwide, and the prolonged deceleration of productivity growth, which needs to pick up to bolster standards of living and poverty eradication.

Global growth is set to rise by 2.5% this year, a small uptick from 2.4% in 2019, as trade and investment gradually recover, the World Bank’s semi-annual Global Economic Prospects forecasts. Advanced economies are expected to slow as a group to 1.4% from 1.6%, mainly reflecting lingering weakness in manufacturing. 

The Global Competitiveness Report series has since its first edition aimed to prompt policy-makers beyond short term growth and to aim for long-run prosperity. The 2020 special edition is dedicated to elaborating on the priorities for recovery and revival, and considering the building blocks of a transformation towards new economic systems that combine “productivity”, “people” and “planet” targets.

Energy transition and the global economy

The global economy has suffered a significant slowdown amid prolonged trade disputes and wide-ranging policy uncertainties. While a slight uptick in economic activity is forecast for 2020, the World Economic Situation and Prospects 2020 warns that economic risks remain strongly tilted to the downside, aggravated by deepening political polarization and increasing scepticism over the benefits of multilateralism. These risks could inflict severe and long-lasting damage on development prospects. They also threaten to encourage a further rise in inward-looking policies, at a point when global cooperation is paramount.

The months after the release of the June 2020 World Economic Outlook (WEO) Update have offered a glimpse of how difficult rekindling economic activity will be while the pandemic surges. During May and June, as many economies tentatively reopened from the Great Lockdown, the global economy started to climb from the depths to which it had plunged in April. But with the pandemic spreading and accelerating in places, many countries slowed reopening, and some are reinstating partial lockdowns. While the swift recovery in China has surprised on the upside, the global economy’s long ascent back to pre-pandemic levels of activity remains prone to setbacks.

In 2019, state government revenues decreased 1.7 percent from the 2018 estimate of $2.71 trillion to $2.66 trillion. The major shares of revenue for state governments were taxes (40.6 percent), intergovernmental (26.6 percent), and insurance trust revenue (16.4 percent).

Global growth is projected at –4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast. In 2021 global growth is projected at 5.4 percent. Overall, this would leave 2021 GDP some 6½ percentage points lower than in the pre-COVID-19 projections of January 2020. The adverse impact on low-income households is particularly acute, imperiling the significant progress made in reducing extreme poverty in the world since the 1990s.

This year’s Global Competitiveness Report is the latest edition of the series launched in 1979 that provides an annual assessment of the drivers of productivity and long-term economic growth.

The global economy will continue to grow at a steady pace of around 3 percent in 2019 and 2020 amid signs that global growth has peaked. However, a worrisome combination of development challenges could further undermine growth, according to the United Nations World Economic Situation and Prospects (WESP) 2019, which was launched today.

UN Secretary-General António Guterres cautioned “While global economic indicators remain largely favourable, they do not tell the whole story.” He said the World Economic Situation and Prospects 2019 “raises concerns over the sustainability of global economic growth in the face of rising financial, social and environmental challenges.”

Global growth is forecast at 3.0 percent for 2019, its lowest level since 2008–09 and a 0.3 percentage point downgrade from the April 2019 World Economic Outlook. Growth is projected to pick up to 3.4 percent in 2020 (a 0.2 percentage point downward revision compared with April), reflecting primarily a projected improvement in economic performance in a number of emerging markets in Latin America, the Middle East, and emerging and developing Europe that are under macroeconomic strain.