Economy

Economy Gerogetown, Guyana. Matias Delacroix / AP 

 

The world's fastest growing economy can double in 5 years  

 

The South American Guyana is facing explosive growth, according to several analysts. The IMF predicts a GDP lift of 38 percent this year for the world's fastest growing economy, writes CNBC.  

 

Fitch Solutions' analysis unit BMI believes that growth will continue and that the economy can grow by 115 percent over the next five years.  

 

BMI's head of analysis Andrew Trahan says that the growth is driven by increased oil production in the wake of a series of discoveries in recent years.  

 

Valerie Marcel at the Chatham House think tank warns at the same time that the price of oil is volatile.  

 

- Therefore, it is extremely important for Guyana to diversify its economy, she says. 

 

Illustration. Shutterstock  

Meta's future  

Meta terminates lease agreements prematurely - takes billions hit 

 

Facebook owner Meta has terminated the lease for an office in central London 18 years early. For that, the company is forced to pay the landlord 149 million pounds, equivalent to 2 billion kroner. The FT reports.  

 

The newspaper writes that the news is the latest sign that the tech giants are determined to cut costs when more and more employees still work from home.  

 

The fee that Meta pays to cancel the contract is equivalent to seven years' rent.  

 

- It is a staggering amount of money. In my 20 years, I can't recall any tenant paying that much, says Matthew Saperia, analyst at Peel Hunt.  

 

Archive image. Carolyn Kaster / AP  

Shutdown risks triggering the start of recession  

 

A shutdown of the US government apparatus would have a "cascading economic effect", with the damage worsening with each passing week. That's what Bloomberg writes.  

 

According to the news agency's calculations, each week's shutdown would lower quarterly GDP growth by 0.2 percentage points. If the budget row does not reach a resolution in a month, unemployment is expected to rise to 4 percent in October, which according to a popular rule would mark the start of a recession. 

 

Initially, a "shutdown" would mean that 1.3 million military personnel and 2 million civilian employees would be furloughed without pay. In addition, government payments to companies such as Space X and Lockheed Martin would be stopped.