Top international headlines: India and Uganda economies take knock due to Covid-19
India’s economy contracted by 7.3 percent, the IMF is helping Uganda mitigate the impact of Covid-19, and more.
The International Monetary Fund approves billions in pandemic bailouts for DRC and Uganda, while the world notes rising food prices. Meanwhile, the Indian economy registers its biggest knock in 40 years and Germany records a decade-high inflation rate.
Prosus bets on growing demand for online learning
Stack Overflow, an online community for software developers, has been acquired by Prosus in a $1.8 billion (R 24.41 billion) deal.
The New York-based Stack Overflow operates a question-and-answer website used by software developers and other types of workers such as financial professionals and marketers who increasingly need coding skills, reports The Wall Street Journal. It attracts more than 100 million visitors monthly, the company says.
Prosus, one of Europe’s most valuable tech companies, is best known as the largest shareholder in Chinese internet and video gaming giant Tencent Holdings.
Rapid rise in world food prices
World food prices rose in May at their fastest monthly rate in more than a decade, posting a 12th consecutive monthly increase to hit their highest level since September 2011, the United Nations food agency has said.
The Food and Agriculture Organization's food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 127.1 points last month versus a revised 121.3 in April.
The April figure was previously given as 120.9, reports Reuters.
IMF pandemic bailout
The IMF will provide a $1 billion (R13.56 billion) facility to Uganda to help mitigate the impact of the coronavirus pandemic.
It comes on the back of a $1.5 billion (R20.34 billion) provision to the Democratic Republic of Congo. The fund has made more than $15 billion provision for sub-Saharan Africa since the pandemic hit the region in 2020. The latest deals need final approval by IMF management and its executive board, reports Bloomberg.
Indian economy takes biggest knock in 40 years
The Indian economy contracted by 7.3 percent for the fiscal year – the worst in more than 40 years.
This was despite an increase of 1.6 percent in the January to March quarter (Q4 FY21), in line with forecasts by experts. It is the second consecutive quarter where it has grown after being in negative territory in the two previous ones, reports the Hindustan Times.
Decade high inflation rate for Germany
Germany's annual inflation rate jumped in May to its highest level in a decade, driven by surging energy prices and one-off effects linked to the pandemic.
This is according to the Destatis statistics agency, which showed that consumer prices in Europe's top economy are mounting a coronavirus recovery, rising by 2.5 percent year-on-year. The last time that rate was reached was September 2011, reports AFP.
German inflation has ticked up steadily since the start of the year, partly because of the introduction of a carbon tax and the end of a six-month sales tax cut aimed at mitigating the economic damage from the pandemic.