In the news: Tuesday


UAE restates 2006 GDP growth rate: 9.4% [Khaleej Times]
The country’s economic ministry revised their 2006 full-year growth rate to 9.4% from the 8.9% reported earlier this year. They attributed the gain to (surprise) fast expansion in the oil/gas sector, which accounts for about a quarter of the country’s GDP. The oil/gas sector is expected to slow down this year.
2005 GDP: 10.5%
2004 GDP: N/A
2003 GDP: 11.9%
If aggregate growth rates that beat China on account of smaller denominators interest you, you may want to look into the following ETF: SPDR Emerging Middle East & Africa (AMEX: GAF).

Physics + Economics = Milton Friedman, Meet Richard Feynman [Slate]
Economists at the NBER are working with physicists to draw pictures of economic space in order to explore explanations for why poor countries remain poor. The idea is that the progression from a poor economy to where it would be when rich may not be smooth. “For instance, to move from drilling oil to making silicon chips might require simultaneous investments in education, transport infrastructure, electricity, and many other things. The gap may be too far for private enterprise to bridge without some sort of coordinating effort from government—a ‘big push.’” The maps plot countries’ export goods according to their degree of similarity, and show that poor economies tend to exhibit clustering around unrelated goods, while rich economies are diversified and tend to produce goods focused at the center (taking advantage of production synergies and such). The problems that then arise concern how governments should push production toward the center, and whether it’s a worthy goal to do so at all.

Profile on the carbon-emissions trading group @ Credit Suisse [Trader Daily]
Interesting read. Bigger groups devoted to trading carbon credits should be the way of the future. David Moss @ Trader Daily interviews Paul Ezekiel of Credit Suisse.

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