Nation | World Business briefs

Nation and world business briefs for March 14.
By The Associated Press Published: March 14, 2014
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Business briefs

Monetary fund issues warning

— The International Monetary Fund warned Thursday that wide income inequality can slow economic growth and is proposing ways to reduce it. Its recommendations include raising property taxes, taxing the rich more than others and raising the eligibility age for government retirement programs. The proposals are the latest sign of the IMF’s growing concern about income inequality and are an unusual focus for a global lending organization best-known for providing loans paired with strict budget cuts. IMF officials say it is up to individual countries to decide whether and how to try to reduce income disparities.

Retail sales climb in February

— U.S. retail sales bounced back in February after suffering a steep decline during a bitterly cold January. The Commerce Department said Thursday that seasonally adjusted retail sales rose 0.3 percent in February. Spending had fallen 0.6 percent in January, revised down from the 0.4 percent decline initially reported. Retail spending also fell 0.3 percent in December. The increase suggests that consumer spending has started to recover after being tempered by snowstorms and freezing temperatures that blanketed much of the country.

Government lifts BP suspension

— The oil company behind the largest offshore oil spill in U.S. history can once again perform work for the federal government. Under an agreement announced Thursday, more than two dozen BP entities and its Houston-based oil production and exploration arm can secure new government contracts. The company had been suspended from performing any new government work since November 2012. That’s when BP agreed to plead guilty to criminal charges involving the death of 11 workers and lying to Congress about how much oil was spilling into the Gulf of Mexico. For five years, BP will have to abide by a series of ethics, safety and other requirements.