April 18, 2017

GDP Now: latest forecast --- 1Q17 -- 0.5% as of April 14, 2017

The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2017 is 0.5 percent on April 14, down from 0.6 percent on April 7.

The forecast for first-quarter real consumer spending growth fell from 0.6 percent to 0.3 percent after this morning's retail sales report from the U.S. Census Bureau and the Consumer Price Index release from the U.S. Bureau of Labor Statistics.

The next forecast is due later today, April 18, 2017.

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Gaza's Only Power Plant Has Run Out Of Fuel

Consider this is a story from the Mideast and considering this is being reported by CNN, it's hard to say what the whole story is. A long, long time ago, I predicted that Saudi Arabil awould have to limit its foreign aid due to its own cash flow problems. I suggested that Saudi Arabi would cut aid to the Palestinian Authority and/or Hamas.

I have no idea if the fact that Gaza's only power plant has run out of fuel has anything to do with foreign aid from Saudi Arabia but it sure seems likely.

The CNN story here. The lede:

Gaza's only power plant has run out of fuel, leaving 2 million residents of the coastal enclave with only four hours of electricity a day in what the UN cautions could be the tipping point to making Gaza "unlivable."

The Palestinian Authority in the West Bank and Hamas in Gaza blame each other for the energy shortage. 

The power generating authority in Gaza says it cannot afford to buy more fuel for the plant -- mostly because of taxes imposed by the Palestinian Authority. The Palestinian Authority claims that the Hamas officials in Gaza are simply incapable of running the plant efficiently.