The outlook for the global economy has darkened in recent weeks
swooned at the good news. Since early October European shares have risen, with optimists declaring an end to the continent’s energy crisis in sight.at recent talk that Xi Jinping will abandon his “zero-covid” policy, and as regulators have loosened their curbs on the property sector.
Deteriorating economic conditions are beginning to show up in “real-time” data. Goldman Sachs, a bank, publishes a “current-activity indicator”, a month-by-month measure of economic strength. Last month, for the first time since the initial covid-19 lockdowns in 2020, rich-world economies appeared to shrink . Likewise, a global survey of purchasing managers indicates a contraction for the first time since June 2020.
Much depends, however, on the path of inflation. Central banks are willing to induce a recession in order to lower inflation. Higher rates may bring “some softening of labour-market conditions”, as Jerome Powell, the chairman of the Fed, noted earlier this month. “We do think that [raising rates] is going to dampen demand, we’re not going to pretend this is pain-free,” Philip Lane of the European Central Bank has warned.
In fact, the inflation virus has spread. We analysed the consumer baskets of 36 mostly rich countries. In June last year 60% of prices in the median basket were rising by more than 4% year on year. Now 67% are. Even in Japan, the land of low inflation, the prices of a third of the basket are rising by more than 4%. This broadening out is in part due to an exceptionally strong dollar, which raises inflation by making imports more expensive.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
I tried Apple Emergency SOS via satellite (even though I didn't need to)You may never need it but...
Read more »
Pourchaire "pretty sure" he wouldn’t be on 2023 F1 grid even with F2 title'To be honest, even if I'd won the championship, I’m pretty sure I wouldn't be in F1 in 2023.' Theo Pourchaire says an F1 seat for 2023 wouldn't have been likely - even with an F2 title win ⬇️
Read more »
Pourchaire "pretty sure" he wouldn’t be on 2023 F1 grid even with F2 titleTheo Pourchaire says he understands that even an F2 title wouldn't have been enough for F1 promotion 'I'm okay with that. I'm still young, and I'm ready to work on myself to be ready to grab a seat in 2024.'
Read more »