CHINA

Thursday, April 17, 2008

CHINA

Economic Growth on a Roll

China's economy grew 10.6 percent in the first quarter, slowing only slightly as concern about the global economy grows, but inflation stayed above 8 percent despite efforts to ease food shortages, the government reported. The cost of food, including pork and vegetables, jumped 21 percent. Beijing said expansion was driven in part by a 21.5 percent jump in retail spending last month.

VENEZUELA

Taxes Go Up for Foreign Oil Firms

President Hugo Chávez's government is charging foreign oil companies a 50 percent tax on additional earnings when crude prices exceed $70 a barrel and 60 percent when prices top $100 a barrel. The levy comes on top of income taxes of 50 percent on foreign oil companies.

EUROPEAN UNION

Inflation at 3.6% Annual Rate

Inflation in countries using the euro jumped, pushing the currency to a new high against the dollar as oil prices rose above $114 a barrel. The 15-nation currency hit $1.5978 after the European Union's statistical agency, Eurostat, said the annual inflation rate rose last month to 3.6 percent because of higher prices for energy and food.

ECUADOR

Petroleum Firm Ends Tax Dispute

Ecuador has settled a dispute with Occidental Petroleum and will return $100 million in tax payments. The government had canceled the contract of Occidental, based in California, in 2006 because of a dispute over value-added taxes.

JORDAN

Food Duties, Sales Taxes Cut

Jordan exempted food such as frozen fish, meat and chicken from customs duties and cut taxes on steel to control accelerating inflation. The government also cut the sales tax on steel to 8 percent from 16 percent, and increased the tariffs on alcohol and tobacco. Inflation accelerated in March to 14.1 percent as fuel costs rose after the government ended subsidies.

Compiled from reports by Washington Post staff writers, Associated Press and Bloomberg.