February 1999 Edition
GROWTH
The World Bank reckons that developing countries' growth will average only 2.4% this year and next, half that of 1997. Despite the East Asian crisis, the region as a whole is expected to grow by 3% over the two years, thanks to China -- faster than Latin America or Africa. Over the medium term, the Bank expects East Asia to remain the fastest-growing region, with 6.5% average growth in the eight years to 2007.
ENTERTAINMENT
Almost half of consumer spending on entertainment in 1996 went toward cablevision, solidifying cable TV's position as the largest component of the entertainment market. In 1996, Canadians spent $5.8 billion on entertainment, up 49.4% in real terms from 1986. While people are still going to the cinema, live staged performances and live sports events, their spending on home entertainment services has grown more rapidly. Spending on cablevision rentals reached almost $2.8 billion in 1996, a 79.7% increase from a decade earlier. Cablevision rentals accounted for 48% of the consumer entertainment services market in 1996, up from about 40% in 1986. Entertainment services accounted for 1.1% of the average Canadian household's budget in 1996, up from 0.7% a decade earlier. On average, households spent $533 on entertainment services in 1996, up from $439 in 1986, due mostly to increases in spending on cablevision.
NATURE
British imperialists often described Hong Kong as a "barren rock." In fact, Hong Kong is surprisingly rich in species. Its 423 square miles supports more types of bird, mammal, insect and plant than the whole of the British Isles.
TEA
Sales of tea in Canada, hot, cold, black, green and specialty flavoured for the 52 week period ending in August 1998, were up 10 per cent over the same period in 1997. Sales of tea for the traditional hot drink rose 6 per cent while iced tea grew 17 per cent. Green tea sales grew by 72 per cent with the greatest increases in B.C. and Alberta. The familiar black tea still makes up 87.5 per cent of the market.
CHARITY
Fewer Canadians gave money to charities in 1997, but those that did gave more. Just under 5.3 million taxfilers reported charitable deductions on their 1997 personal income tax returns, down 3.1% from the year before. However, these individuals gave $4.3 billion, up 6.0% from 1996. The decline in the number of donors was the largest this decade, while the increase in donations was the second largest. Charitable donors in Newfoundland again reported the highest median donation ($270), despite having the lowest median total income ($27,900). Quebec taxfilers had the lowest median donation ($100).
LUGGAGE
British Airways is experimenting with high-tech baggage labels to speed luggage delivery and reduce the risk of loss. The tags contain microchips which use radio frequency technology and report in every few seconds where they are in the delivery path. Any discrepancies sound an alarm.
TAXES
The Canadian government has approved a levy on "recordable media." which will boost the cost of recording materials, including recordable CD-ROMs. The levy is expected to be about 50 cents for every 15 minutes of digital recordable time thus adding around $2.50 to blank CDs. The levy will also be added to blank tapes and the money collected will be distributed to Canadian artists to make up for the income lost from illegal copying. The problem is that CDs have emerged as one of the most cost-effective technologies for dealing with large volumes of data. Some speculate that this levy will cause many software companies to relocate south of the border.
LANGUAGE
During the past 100 years, 10 of Canada's once-flourishing Aboriginal languages have become extinct, and a dozen are on the brink. As of 1996, only three out of 50 Aboriginal languages - Cree, Inuktitut and Ojibway - had large enough populations to be considered secure from the threat of extinction. Of some 800,000 persons who claimed an Aboriginal identity in 1996, only 26% said an Aboriginal language was their mother tongue. 50 Aboriginal languages belong to 11 major language families. Some of these are large and strong, others small and vulnerable. The three largest families together represent 93% of persons with an Aboriginal mother tongue. The two smallest and weakest language groups, Kutenai and Tlingit, have mother tongue populations of only 120 and 145 respectively.
EXPANSION
Small businesses in the U.S. are on a spending spree according to a survey by the National Federation of Independent Business. Easy credit markets, growing sales and the strong domestic economy have created an atmosphere for expansion. Nearly three-quarters of companies surveyed said they expanded capital spending over the past six months and 41 per cent plan to do so in the coming six months, the highest levels reached in the survey's 25 year history.
GAMBLING
Government-regulated casinos and video lottery terminals, introduced during the 1990s, have turned gambling into a multi-billion dollar industry. In 1997, Canadians wagered $6.8 billion on some form of government-run gambling activity, 2.5 times the $2.7 billion in 1992. Casinos and VLTs represented just 10% of all government gambling revenue in 1992. By 1997, they accounted for a full 59%. In 1997, provincial governments made $3.8 billion from gambling, more than double the profit level of $1.7 billion five years earlier. Employment in gambling almost tripled, from 12,000 jobs to 35,000, while employment in all other industries increased only 8%. The net increase of 23,000 jobs since 1992 accounted for 2% of all employment growth during the five-year period.
OPEC
OPEC countries' oil revenue plunged by $62 billion (U.S.), or 35.6 per cent in 1998 to their lowest levels in a decade. Oil revenues for the 11 members of the Organization of Petroleum Exporting Countries fell to $112 billion from $175 billion the previous year. The biggest sufferer was Indonesia where revenue fell 43 per cent.
WATER
According to The London Observer, scientists calculate that seven per cent of the human race do not have enough water to survive. Their figures show this will rise to a staggering 70 per cent by 2050.
TECHNOLOGY
Three million cars in England may be at risk from theft -- thanks to a simple consumer handheld computer. Using the new PalmPilot III PDA and special software (easy to find on the web), it takes about ten seconds to copy the codes from the newer key-mounted remote controls used to operate a modern car's central-locking system. The PalmPilot computer has a built-in infrared port, and software designed to record the infrared signals from TV and video remote controls can also enable users to enable the Palm Pilot to control all IR gadgets -- including car locks.
FARMING
The U.S. Agriculture Department has cut its forecast for the value of farm exports in fiscal 1999, largely because of declining commodity prices and lower poultry exports to crisis-hit Russia. U.S. farmers will export products worth $50.5 billion in the October-to-September year, the department estimates, down from its August estimate of $52 billion.
REPAIRS
In 1997, Canadians got out their hammers and nails increasing spending on home repairs and renovations for the first time in three years. Homeowners spent $12.8 billion to improve and maintain their dwellings, up 7.3% from 1996. Spending increased faster on building materials than it did on contractors, indicating a movement toward "do-it-yourself" activity. On average, homeowners spent $1,712 in 1997. This spending was still considerably below the peak of $2,197 in 1989 but was the first increase since 1994. Of the nation's 7.5 million homeowners in 1997, 9.2% spent more than $5,000.
LITERACY
The health of many Canadian seniors may be at risk simply because they are not able to read crucial information accompanying prescription drugs, according to a recent research paper. The findings support the view that literacy skills and practices may serve as "barriers" for seniors in their attainment of good health. The potential for errors in medication is enormous among seniors unable to properly understand written directions on prescription drugs, or among those who are unable to decipher a written text. Elderly patients will experience this problem to a much greater degree, since they are more likely to use medication and take several prescription drugs simultaneously.
GOLD
It is estimated that last year, Indians spent more money on gold than on cars, two-wheeled transport, fridges and colour TVs combined. Buyers in India will now pay 9 per cent more than the international price of gold. After adding local levies, the difference could be as high as 12 per cent. Gold buying is a habit with strong cultural and economic roots and gold jewellery is the only form of wealth that women can claim as their own. The bill for this year's gold imports will be close to $7 billion, second only to oil among India's imported commodities.
SERVICE
According to Wired magazine, in Finland, which has more cell-phones per capita than any place in the world, people can phone vending machines. A soft drink, for example, comes tumbling down the chute and its cost is added to the phone bill.
COMFORT
Tesco, Britain's largest supermarket chain is considering allowing nude shopping following requests from local nudists. Health and safety concerns permitting--fruit and vegetables may need to be prepackaged to avoid contact with naked flesh--they would be allowed to roam the aisles on a designated evening following the store's normal 10.00pm closing time and redress before they left. Store windows would be blacked out and Tesco staff would be allowed to remain clothed.
SHOPPING
Canadian grocery chains are making little progress towards online availability. In the U.S., IBM and Safeway are working on new shopping technology that bypasses the Internet but allows shoppers to order groceries from the comfort of home. The secret is an advanced version of the handheld scanner that shoppers would use at home. The shopper pages through a list of products then uploads their requirements to the Safeway computer system along with a credit\debit card number for payment purposes. The shopper then visits the store where groceries are already bagged and ready to take home.
PIZZA
Competition in this sector has heated up considerably in Canada in the 1990s. The number of pizzerias has continued to grow, discounting has spread and everyone from grocers to gourmet restaurants are offering the product. The Canadian Restaurant and Foodservices Association estimates that pizza-based restaurants have seen their average pretax profits fall to 3.6 per cent in 1996 from 10.7 per cent in 1990.
PERMISSION
Jack Smedley, an 80-year old in Hull, England, recently had to get a letter from his 101-year old mother before he was allowed to enter a veterans fishing contest because he could not remember how old he was.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
The World Bank reckons that developing countries' growth will average only 2.4% this year and next, half that of 1997. Despite the East Asian crisis, the region as a whole is expected to grow by 3% over the two years, thanks to China -- faster than Latin America or Africa. Over the medium term, the Bank expects East Asia to remain the fastest-growing region, with 6.5% average growth in the eight years to 2007.
ENTERTAINMENT
Almost half of consumer spending on entertainment in 1996 went toward cablevision, solidifying cable TV's position as the largest component of the entertainment market. In 1996, Canadians spent $5.8 billion on entertainment, up 49.4% in real terms from 1986. While people are still going to the cinema, live staged performances and live sports events, their spending on home entertainment services has grown more rapidly. Spending on cablevision rentals reached almost $2.8 billion in 1996, a 79.7% increase from a decade earlier. Cablevision rentals accounted for 48% of the consumer entertainment services market in 1996, up from about 40% in 1986. Entertainment services accounted for 1.1% of the average Canadian household's budget in 1996, up from 0.7% a decade earlier. On average, households spent $533 on entertainment services in 1996, up from $439 in 1986, due mostly to increases in spending on cablevision.
NATURE
British imperialists often described Hong Kong as a "barren rock." In fact, Hong Kong is surprisingly rich in species. Its 423 square miles supports more types of bird, mammal, insect and plant than the whole of the British Isles.
TEA
Sales of tea in Canada, hot, cold, black, green and specialty flavoured for the 52 week period ending in August 1998, were up 10 per cent over the same period in 1997. Sales of tea for the traditional hot drink rose 6 per cent while iced tea grew 17 per cent. Green tea sales grew by 72 per cent with the greatest increases in B.C. and Alberta. The familiar black tea still makes up 87.5 per cent of the market.
CHARITY
Fewer Canadians gave money to charities in 1997, but those that did gave more. Just under 5.3 million taxfilers reported charitable deductions on their 1997 personal income tax returns, down 3.1% from the year before. However, these individuals gave $4.3 billion, up 6.0% from 1996. The decline in the number of donors was the largest this decade, while the increase in donations was the second largest. Charitable donors in Newfoundland again reported the highest median donation ($270), despite having the lowest median total income ($27,900). Quebec taxfilers had the lowest median donation ($100).
LUGGAGE
British Airways is experimenting with high-tech baggage labels to speed luggage delivery and reduce the risk of loss. The tags contain microchips which use radio frequency technology and report in every few seconds where they are in the delivery path. Any discrepancies sound an alarm.
TAXES
The Canadian government has approved a levy on "recordable media." which will boost the cost of recording materials, including recordable CD-ROMs. The levy is expected to be about 50 cents for every 15 minutes of digital recordable time thus adding around $2.50 to blank CDs. The levy will also be added to blank tapes and the money collected will be distributed to Canadian artists to make up for the income lost from illegal copying. The problem is that CDs have emerged as one of the most cost-effective technologies for dealing with large volumes of data. Some speculate that this levy will cause many software companies to relocate south of the border.
LANGUAGE
During the past 100 years, 10 of Canada's once-flourishing Aboriginal languages have become extinct, and a dozen are on the brink. As of 1996, only three out of 50 Aboriginal languages - Cree, Inuktitut and Ojibway - had large enough populations to be considered secure from the threat of extinction. Of some 800,000 persons who claimed an Aboriginal identity in 1996, only 26% said an Aboriginal language was their mother tongue. 50 Aboriginal languages belong to 11 major language families. Some of these are large and strong, others small and vulnerable. The three largest families together represent 93% of persons with an Aboriginal mother tongue. The two smallest and weakest language groups, Kutenai and Tlingit, have mother tongue populations of only 120 and 145 respectively.
EXPANSION
Small businesses in the U.S. are on a spending spree according to a survey by the National Federation of Independent Business. Easy credit markets, growing sales and the strong domestic economy have created an atmosphere for expansion. Nearly three-quarters of companies surveyed said they expanded capital spending over the past six months and 41 per cent plan to do so in the coming six months, the highest levels reached in the survey's 25 year history.
GAMBLING
Government-regulated casinos and video lottery terminals, introduced during the 1990s, have turned gambling into a multi-billion dollar industry. In 1997, Canadians wagered $6.8 billion on some form of government-run gambling activity, 2.5 times the $2.7 billion in 1992. Casinos and VLTs represented just 10% of all government gambling revenue in 1992. By 1997, they accounted for a full 59%. In 1997, provincial governments made $3.8 billion from gambling, more than double the profit level of $1.7 billion five years earlier. Employment in gambling almost tripled, from 12,000 jobs to 35,000, while employment in all other industries increased only 8%. The net increase of 23,000 jobs since 1992 accounted for 2% of all employment growth during the five-year period.
OPEC
OPEC countries' oil revenue plunged by $62 billion (U.S.), or 35.6 per cent in 1998 to their lowest levels in a decade. Oil revenues for the 11 members of the Organization of Petroleum Exporting Countries fell to $112 billion from $175 billion the previous year. The biggest sufferer was Indonesia where revenue fell 43 per cent.
WATER
According to The London Observer, scientists calculate that seven per cent of the human race do not have enough water to survive. Their figures show this will rise to a staggering 70 per cent by 2050.
TECHNOLOGY
Three million cars in England may be at risk from theft -- thanks to a simple consumer handheld computer. Using the new PalmPilot III PDA and special software (easy to find on the web), it takes about ten seconds to copy the codes from the newer key-mounted remote controls used to operate a modern car's central-locking system. The PalmPilot computer has a built-in infrared port, and software designed to record the infrared signals from TV and video remote controls can also enable users to enable the Palm Pilot to control all IR gadgets -- including car locks.
FARMING
The U.S. Agriculture Department has cut its forecast for the value of farm exports in fiscal 1999, largely because of declining commodity prices and lower poultry exports to crisis-hit Russia. U.S. farmers will export products worth $50.5 billion in the October-to-September year, the department estimates, down from its August estimate of $52 billion.
REPAIRS
In 1997, Canadians got out their hammers and nails increasing spending on home repairs and renovations for the first time in three years. Homeowners spent $12.8 billion to improve and maintain their dwellings, up 7.3% from 1996. Spending increased faster on building materials than it did on contractors, indicating a movement toward "do-it-yourself" activity. On average, homeowners spent $1,712 in 1997. This spending was still considerably below the peak of $2,197 in 1989 but was the first increase since 1994. Of the nation's 7.5 million homeowners in 1997, 9.2% spent more than $5,000.
LITERACY
The health of many Canadian seniors may be at risk simply because they are not able to read crucial information accompanying prescription drugs, according to a recent research paper. The findings support the view that literacy skills and practices may serve as "barriers" for seniors in their attainment of good health. The potential for errors in medication is enormous among seniors unable to properly understand written directions on prescription drugs, or among those who are unable to decipher a written text. Elderly patients will experience this problem to a much greater degree, since they are more likely to use medication and take several prescription drugs simultaneously.
GOLD
It is estimated that last year, Indians spent more money on gold than on cars, two-wheeled transport, fridges and colour TVs combined. Buyers in India will now pay 9 per cent more than the international price of gold. After adding local levies, the difference could be as high as 12 per cent. Gold buying is a habit with strong cultural and economic roots and gold jewellery is the only form of wealth that women can claim as their own. The bill for this year's gold imports will be close to $7 billion, second only to oil among India's imported commodities.
SERVICE
According to Wired magazine, in Finland, which has more cell-phones per capita than any place in the world, people can phone vending machines. A soft drink, for example, comes tumbling down the chute and its cost is added to the phone bill.
COMFORT
Tesco, Britain's largest supermarket chain is considering allowing nude shopping following requests from local nudists. Health and safety concerns permitting--fruit and vegetables may need to be prepackaged to avoid contact with naked flesh--they would be allowed to roam the aisles on a designated evening following the store's normal 10.00pm closing time and redress before they left. Store windows would be blacked out and Tesco staff would be allowed to remain clothed.
SHOPPING
Canadian grocery chains are making little progress towards online availability. In the U.S., IBM and Safeway are working on new shopping technology that bypasses the Internet but allows shoppers to order groceries from the comfort of home. The secret is an advanced version of the handheld scanner that shoppers would use at home. The shopper pages through a list of products then uploads their requirements to the Safeway computer system along with a credit\debit card number for payment purposes. The shopper then visits the store where groceries are already bagged and ready to take home.
PIZZA
Competition in this sector has heated up considerably in Canada in the 1990s. The number of pizzerias has continued to grow, discounting has spread and everyone from grocers to gourmet restaurants are offering the product. The Canadian Restaurant and Foodservices Association estimates that pizza-based restaurants have seen their average pretax profits fall to 3.6 per cent in 1996 from 10.7 per cent in 1990.
PERMISSION
Jack Smedley, an 80-year old in Hull, England, recently had to get a letter from his 101-year old mother before he was allowed to enter a veterans fishing contest because he could not remember how old he was.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
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