20100608 1158 Global Economic News.

Taiwan: Exports climbed in May for seventh month
Taiwan’s exports climbed in May for a seventh month as a recovery in the global economy boosted demand for the island’s computers and electronics parts. Shipments abroad gained 57.9% from a year earlier, the Ministry of Finance said in Taipei. A separate report showed consumer prices rose 0.74% in May, slowing from 1.34% in April. (Bloomberg)

New Zealand: Wider budget cash deficit than forecast
New Zealand’s budget cash deficit was wider than the government forecast because of lower-than-expected tax receipts. The cash deficit totaled NZD9.83bn (USD6.5bn) in the 10 months ended April 30, or NZD275m wider than forecast in last month’s budget, the Treasury Department said in a statement released in Wellington. (Bloomberg)

Hungary: Needs extra budget cuts of 1%-1.5% of GDP
Hungarian Economy and Finance Minister Gyorgy Matolcsy said the nation’s government will need to take additional measures amounting to 1% to 1.5% of gross domestic product to be able to meet a deficit target agreed to with the country’s international creditors. Prime Minister Viktor Orban will unveil the measures aimed at reducing expenses, increasing revenue and fueling economic growth in Parliament. (Bloomberg)

EU: Stronger than mark proves Trichet currency stays
The euro’s 21% tumble from last year’s high has left the currency above the average level since its creation in 1999 and stronger than its predecessor, the deutsche mark. Even as the euro weakened 2.5% last week against the dollar and fell below USD1.20 for the first time since March 2006, it remains higher than the close of USD1.1837 on 4 Jan 1999, the first Monday of trading after its introduction, and stronger than the USD1.1842 monthly average since inception. (Bloomberg)

EU: To tighten budgets in 2011, defying US’ pleas
European governments vowed to raise taxes or cut spending next year, balking at US pleas for looser budget policies to help speed the recovery from the worst recession since World War II. Budgets will remain “neutral” in 2010, becoming “clearly restrictive as of 2011 when recovery is expected to gain momentum,” Luxembourg Prime Minister Jean-Claude Juncker told reporters. (Bloomberg)

UK: Prepares for cuts hurting ‘every single person’
UK Prime Minister David Cameron, preparing voters for the deepest spending cuts in a generation, said the previous Labour government left the public finances in a weaker state than he anticipated. “The overall scale of the problem is even worse than we thought,” Cameron said in a speech. “The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.” (Bloomberg)

US: Consumer credit increased USD1bn in April
Consumer borrowing in the US rose in April for the first time in three months, indicating a recovery in bank lending will take time to develop. The USD1bn rise followed a revised USD5.4bn decrease in March that was previously reported as a USD2bn gain, the Federal Reserve said in Washington. (Bloomberg)