Global Markets: US GDP hits the brakes

WINNIPEG, October 29 – The following is a glance at the news moving markets globally.

US GDP GROWTH SLOWED IN THIRD-QUARTER

Economic growth in the US halted sharply in the third-quarter, according to data released by the country’s Commerce Department.

Gross domestic product increased at a 1.5 per cent annual rate, compared with 3.9 per cent in the previous quarter.

The slowdown was attributed to a temporary inventory glut, and the situation is expected to improve into the fourth-quarter.

CHINA’S LEADERS SAY THEY’LL DOUBLE ECONOMY BY 2020

Leaders from China pledged on Thursday to double the size of the country’s economy from 2010 levels by 2020.

The leaders said they were developing plans for a consumer and technology-based economy to replace a trade and investment-based economy.

However, they do not have an annual growth target set, and the amount of growth required to meet proposed levels would mean a seven per cent boost annually.

US FEDERAL RESERVE DOESN’T RAISE INTEREST RATES

The US Federal Reserve kept interest rates unchanged at its latest policy meeting, but indicated confidence in the country’s economy and its ability to take an interest raise boost.

Analysts interpreted the announcement to mean the bank will likely raise interest rates in December.

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