20121023 1009 Global Economy Related News.

Vietnam: Struggle to meet 2012 growth target
Vietnam will struggle to meet its 2012 growth target without pumping money into the economy, according to economists including an adviser to Prime Minister Nguyen Tan Dung. Vietnam’s economy needs to grow 6.5% in the fourth quarter in order to meet the government’s full-year growth target of 5.2%, the prime minister told lawmakers at the National Assembly. Vietnam’s 2012 economic growth may reach 5% to 5.2%, Nguyen Van Giau, chairman of the assembly’s economic committee, told lawmakers. (Bloomberg)

Japan: Exports tumble 10% as Maehara presses BOJ to ease
Japan’s exports fell the most since the aftermath of last year’s earthquake as a global slowdown, the yen’s strength and a dispute with China increase the odds of a contraction in the world’s third-largest economy. Shipments slid 10.3% in September from a year earlier, leaving a trade deficit of JPY558.6bn (USD7bn), the Finance Ministry said. The median forecast in a Bloomberg News survey of analysts was for a 9.9% export decline. Imports rose 4.1%. (Bloomberg)

Australia: Linkers drop most since June as inflation ebbs
Australian inflation-linked bonds are falling by the most in four months before a report that will probably show slowing economic growth is containing consumer-price gains. The bonds have lost 1.2% since 30 Sept, almost double the 0.7% slide for notes that aren’t tied to living costs, Bank of America Merrill Lynch indexes show. Annual inflation reached 1.6% in the 12 months ended 30 Sept, below the bottom of the Reserve Bank of Australia’s target range of 2% to 3%, according to economists surveyed by Bloomberg News. (Bloomberg)

EU: Seeks go-ahead to devise transaction tax for willing nations
The European Union is officially asking all 27 EU nations to allow development of a financial transaction tax for a subset of willing countries, according to documents obtained by Bloomberg News. EU Tax Commissioner Algirdas Semeta plans to move the process forward by announcing that the European Commission, the EU executive in Brussels, has the backing needed to use the so-called enhanced cooperation procedures. A weighted majority of the 27 EU countries must approve the start of the talks, and details of the tax will then be negotiated among participants. (Bloomberg)

EU: Cut fiscal deficit in 2011, debt up
The eurozone’s fiscal deficit fell sharply last year as governments slashed expenses and raised taxes to regain market confidence in their public finances, but public debt still climbed, data from the European Union’s statistics office showed. Eurostat said the aggregate budget deficit in the 17 countries using the euro fell to 4.1% of GDP in 2011 from 6.2% in 2010- the first year of the sovereign debt crisis.(Reuters)