Bank of England holds rates, stresses June cut depends on coming data. Members of the central bank’s Monetary Policy Committee voted 7-2 to maintain rates at their current levels, with the latter favoring a cut. (CNBC)

China's exports and imports return to growth, signaling demand recovery. China's exports and imports returned to growth in April after contracting in the previous month, signaling an encouraging improvement in demand at home and overseas as Beijing navigates numerous challenges in an effort to shore up a shaky economy. (Reuters)

Milei is beating the odds. Will it last? What happens when a country with triple-digit inflation and chronic fiscal deficits elects a chainsaw-wielding populist with a dead dog for chief counsel as president? (GZERO)

Brazil polls show mixed scenario for Lula’s approval ratings. Approval of his government fell to 33% in May from 35% in February, a Genial/Quaest poll showed on Wednesday, matching the disapproval rate, which declined just 1 percentage point. (Reuters)

US regulators discuss finalizing bank capital rules as soon as August. The Federal Reserve and other top U.S. regulators are forging ahead with their plan to make big banks hold more capital. (Reuters)

Shipping firms respond to Houthi attacks in Red Sea. Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea, impacting a shipping route vital to east-west trade. (Reuters)

South African rand gains on bets of US rate cuts. The South African rand was stronger on Monday against a weaker dollar, as market confidence gained on bets of U.S. interest rate cuts this year, analysts said. (Reuters)

US-Africa trade deal turns 25 next year. Its goal is to promote economic growth, development and poverty reduction in sub-Saharan Africa by providing qualifying countries with duty-free access to the U.S. market for over 6,500 products. (The Conversation)

Panama’s Mulino wins presidency with support from convicted former leader. Panama's former security minister Jose Raul Mulino on Sunday stormed to victory in a presidential poll dominated by his old boss, the popular ex-leader Ricardo Martinelli, who buttressed his campaign despite being holed up in Nicaragua's embassy. (Reuters)

Europe’s economy shows signs of life with 0.3% growth in 1st quarter as inflation, energy woes ease. Europe’s economy perked up slightly at the start of the year, recording 0.3% growth in the January-March quarter compared to the last three months of 2023 as the inflation burden on consumers eased and the stagnating German economy, the continent’s biggest, started to show modest signs of life. (AP)

European companies are less upbeat about China’s vast market as its economy slows. The slowing economy is now the dominant concern of respondents to the European Chamber of Commerce in China survey, which was released Friday. (AP)

British economy rebounds strongly in first quarter of the year, ending ‘technical recession.’ The Office for National Statistics said the economy grew by 0.6% in the first quarter from the previous three-month period, with broad-based strength across the crucial services sector in particular. (AP)

Gaza war: Netanyahu vows to defeat Hamas in Rafah despite US arms threat. Benjamin Netanyahu has vowed Israel can “stand alone,” after the U.S. warned arms shipments could be stopped if he orders a full-scale invasion of Rafah in Gaza. (BBC)

US cancels export licenses of suppliers to China’s Huawei. The United States has revoked some licenses that allow companies to ship goods, such as chips, to sanctioned Chinese telecommunications equipment maker Huawei Technologies. (Al Jazeera)

Canadian economy defies recession predictions

Jamilex Gotay, editorial associate

Despite higher interest rates, the Canadian economy is exceeding expectations and has dodged the predicted 2023 recession. Real GDP at basic prices grew 0.6% in January (7.4% annualized), and preliminary estimates pointed to 0.4% growth in February (4.9% annualized). This suggests that growth in the first quarter of 2024 is on track for around 3.5%, according to data from Statistics Canada.

The Bank of Canada projects that inflation will stay around 3% into the second quarter of 2024, ease below 2.5% in the second half of the year and return to target in 2025, according to their April Monetary Policy Report. 

The Canadian job market has notably slowed in the past year due to the Bank of Canada's interest rate increases impacting economic growth. The unemployment rate is up a full percentage point from a year ago as population growth has outpaced job creation, according to the Financial Post. “Wage growth slowed last month to an annual pace of 4.7%, down from 5.1% in March,” reads the article.

A report by the Government of Canada states that private sector forecasters expect that the year ahead should bring further progress. “By the end of the year, they expect economic growth will pick up, interest rates will be lower, and inflation will decline to about 2%,” the report reads “Both the International Monetary Fund (IMF) and the Organization for Economic Co-operation and Development (OECD) project that Canada will see the strongest economic growth in the G7 in 2025.”

Meanwhile, Canadians confront difficulties with high living costs, notably for groceries and housing. The Canadian government is assisting younger Canadians, worried about maintaining the same living standard as prior generations, to realize their potential.

The Government of Canada reports that millennials are now the largest Canadian generation, having surpassed baby boomers in July 2023. “Millennials' success in the workforce is Canada's success,” the report reads. “We will ensure they succeed by boosting innovation, increasing productivity, in turn, raising wages and creating more good jobs—ensuring that Canada's economy reaches its full potential.”

What’s next: The Bank of Canada will make its interest rate decision next month. As of now, the Bank of Canada’s key interest rate sits at a 5% record-high since 2001.

By the numbers: Customers in Canada have averaged 10 days beyond terms, with 65% of credit professionals saying payment delays have stayed the same, per the FCIB Credit and Collections Survey. The most common causes of payment delays are customer payment policy (45%), billing disputes (42%) and cash flow issues (26%).

What FCIB Credit and Collections Survey respondents are saying:

• “Have customers pay by EFT to avoid payment delays.”
• “This is a good country to do business with if you understand their processes and complete due diligence.”
• “Make sure you have a good contract and all your documents in line. If you have that they are fairly easy to work with.”
• “Require ACH/EFT/Wire payments. Mail too slow.”
• “Fairly simple doing business in Canada. You have to watch the Quebec region as different laws apply compared to the other regions. We had to place a few customers on CIA due to their late payment situations but overall pretty easy to do business and collect monies.”
• “We are not experiencing any issues with Canada except exchange rate concerns.”
• “Make sure your contract states the currency that you are going to bill in and the currency you are going to be paid in, or you can be left with a lot of money you cannot collect.”

Week in Review Editorial Team:

Annacaroline Caruso, editor in chief

Jamilex Gotay, editorial associate

Kendall Payton, editorial associate