Английский язык для специальных целей в экономической сфере. Практикум для студентов-магистров

МИНИСТЕРСТВО ТРАНСПОРТА РОССИЙСКОЙ ФЕДЕРАЦИИ

ФЕДЕРАЛЬНОЕ ГОСУДАРСТВЕННОЕ АВТОНОМНОЕ ОБРАЗОВАТЕЛЬНОЕ УЧРЕЖДЕНИЕ

ВЫСШЕГО ОБРАЗОВАНИЯ

«РОССИЙСКИЙ УНИВЕРСИТЕТ ТРАНСПОРТА»

Институт экономики и финансов Кафедра «Лингвистика»

Н.Б. Назарова

Английский язык для специальных целей в экономической сфере

Практикум для студентов-магистров

направления «Экономика»

МОСКВА - 2020

Text 1. The wealthy must prepare for depressed asset

growth

The Financial Times, December 03.2020

By Stefan Wagstyl

(https://www.ft.com/content/f7e81f90-6b82-4c9b-b370-

d3af59428dcc)

The rich can mitigate the effects of a crisis but cannot escape them entirely. If household assets do not stand on firm economic foundations they will crumble.

The soaring wealth of Amazon chief Jeff Bezos, Facebook founder Mark Zuckerberg and other tech billionaires has highlighted how well the very rich have ridden the economic storm unleashed by the pandemic. Their good fortune contrasts sharply with the dire fate of hundreds of millions of people who have lost their job, had their pay cut or seen their meagre savings depleted to pay bills.

But it is not just the globe’s 2,000-odd billionaires and 175,000 or so people worth $50m and more who have weathered the economic turmoil well. So too have millions of other affluent people, including entrepreneurs, corporate executives, lawyers, financiers, doctors and senior civil servants.

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This point is highlighted in Credit Suisse’s 2020 Global

Wealth Report: it states that while total global wealth dipped sharply during the upheaval in financial markets between January and March, it had recovered to be up $1tn, or 0.3 per cent, at the end of June compared with the start of the year.

Сredit Suisse’s researchers found no sign, however, of the ultra-rich benefiting at the expense of the less well-off in terms of wealth. As they put it, there was “no firm evidence that the pandemic has systemically favoured higher-wealth over lower-wealth groups or vice versa”. The number of ultra-rich people — those with a net worth of $50m or more — was essentially unchanged, slipping by 122 to 175,566 in the first half of 2020.

The report gives three reasons for this overall resilience. First, a sharp drop in consumption spending translated into higher savings. Second, low interest rates have supported not only financial markets but other assets, including property, a key element in many middle-class portfolios. And third, government pandemic support in developed countries has helped not only the poor but also the well-off.

The authors point out, correctly, that savings are particularly important in a crisis as a financial shock absorber. Those with little or nothing to their name have suffered

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disproportionately, especially if they are among those who have lost their job or had their pay slashed. So even if wealth distribution has not changed much, income distribution has. As the report says: “It is likely that income inequality has grown in many countries, despite efforts by governments to support those most in need.”

As Credit Suisse warns, the pandemic story is by no means over. Government support will be temporary, interest rates will rise and governments will seek to recover some of the higher public spending through tax increases. All of which

“will hamper growth of household wealth for several years ahead”, the report says.

Credit Suisse does not speculate further, but the wealthy should clearly prepare for possible levies on their assets as well as their income. The favourable treatment of capital gains in many developed countries may not last.

Moreover, as the report also shows, even if the pandemic has so far left the overall global household wealth pile largely intact, there are significant differences between countries. China and India saw their accumulated wealth increase in the first half of 2020. North America and Europe, meanwhile, were largely flat, though the UK was a conspicuous exception, with a 6.5 per cent decline, the largest in any big

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developed economy. Among emerging markets, Latin America suffered most, with a 12.8 per cent drop in wealth. These differences largely reflect gaps in economic performance.

The rich can mitigate the effects of a crisis but cannot escape them entirely. If household assets do not stand on firm economic foundations, they will crumble.

Are these statements true or false? Correct the false ones.

1.It is difficult for the rich escape the effects of a crisis.

2.The wealth of Amazon chief Jeff Bezos, Facebook founder Mark Zuckerberg and other tech billionaires has decreased due to pandemic.

3.The number of ultra-rich people — those with a net worth of $50m or more — has essentially increased.

4.Government pandemic support in developed countries has helped only the poor but also not the well-off.

5.Savings are particularly important in a crisis to mitigate the effects of a crisis.

6.Income inequality has grown significantly in many countries, in spite of efforts by governments to support those most in need.

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7.The pandemic has so far left the overall global household wealth pile largely intact, there are significant differences between countries.

Text 2. Multinationals flatter Ireland’s economic data.

Covid restrictions have hit domestic sectors far harder than

GDP figures suggest

Financial Times EUROPE (world business newspaper) Wednesday 18 November 2020, page 2

Arthur Beesley — Dublin

The glassy offices of Grand Canal Square in Dublin sit empty as Covid-19 restrictions keep workers at home — but the buildings lie at the heart of the country’s economic outperformance.

Irish gross domestic product is projected to shrink 2.3 per cent this year, well below the 7.4 per cent EU average, and European Commission forecasts suggest it will be one of just two EU economies to return to their pre-pandemic size by the end of next year.

That is in part down to the occupants of the Grand Canal Square tech hub, with Google and Facebook nearby, and exports of pharmaceuticals made by big international groups in Ireland.

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About 245,000 people work for companies that have made Ireland a European hub for multinationals that spent

€21.5bn locally in 2019, according to IDA Ireland. The presence of these companies inflates GDP figures, obscuring the impact of the pandemic on an economy in which coronavirus restrictions have cost hundreds of thousands of jobs. In July, IDA Ireland said existing investment was

“resilient but not immune” to the pandemic.

Seamus Coffey, economist at University College Cork and former chairman of the Irish Fiscal Advisory Council, a statutory budget oversight body, said the GDP figure is “real ...

but it’s not an indication of the changes in living standards of

Irish people”.

Large parts of the economy have been locked down for months, putting the public finances under acute pressure.

Conall Mac Coille, economist at Davy stockbrokers, said: “Ireland saw some of the sharpest declines in consumer spending and output in hard-hit sectors like tourism and retail because our Covid-19 restrictions were more strict and longer than other European countries.

“Labour market data looked particularly poor during the first round of the pandemic, which led to extraordinarily high spending on employment and welfare support.”

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Such is the size of the multinational sector that Dublin has developed a bespoke measure, modified gross national income, to capture what is really going on in the domestic economy by stripping out foreign investment.

Michael McGrath, public expenditure minister, said the true extent of the downturn is more than twice the rate suggested by the GDP data. “It is undoubtedly the case that the hardesthit sectors . . . are domestic in nature —including tourism, hospitality and retail — and this is borne out by the overall numbers,” he said.

“While the economy is expected to contract by over 2 per cent in GDP terms this year, modified domestic demand, which is a much more accurate barometer of domestic activity, is expected to shrink by around 6 per cent. The challenge for us lies in the fact that the domestic sectors are jobs-rich, and therefore there has been a disproportionate negative impact on employment in our country as a result of Covid-19.”

Loretta O’Sullivan, chief economist at Bank of Ireland, noted falling consumer and business sentiment just before the latest restrictions, and the lack of a post-Brexit trade deal adding to the anxiety. “Firms in all sectors ... did pare their expectations for near-term activity, particularly over the coming three months,” she said. “Households are very worried

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about what it all means for the economy and ... for unemployment.”

Ireland entered the pandemic at close to full employment with a 4.8 per cent jobless rate in February. Unemployment, taking into account people receiving pandemic-related benefits, peaked at 28 per cent in April and it was at 20.2 per cent in October as a new six-week lockdown was imposed.

Some 350,072 people are on special pandemic unemployment payments, the government said on Monday, at a weekly cost of €103.8m. Almost 103,000 people are jobless in the accommodation and food service sectors, 57,000 in wholesale and retail and 31,000 in hair and beauty salons.

A further 203,172 people are claiming other, non-Covid jobless benefits. This month the state has separately paid €80m in subsidies to 19,200 employers, helping sustain 170,800 jobs. The GDP question has a bearing on Ireland’s budget deficit, a crucial gauge under EU fiscal rules. The deficit is projected by Brussels to come in at 6.8 per cent of GDP this year, a level

“near the bottom” of the range across the Eurozone, said Mr Coffey.

But the deficit as a proportion of modified GNI comes in around 12 per cent, comparable with the highest in the bloc.

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