Sections SEARCH Skip to content Skip to site index Subscribe Log In Subscribe Log In Advertisement Upshot Supported by One thing that has become clear over the last decade is how effects can spread unpredictably across countries in times of financial disruption. ByNeil Irwin May 30, 2018 Italian political dysfunction is nothing new. Italian political dysfunction that ripples through global financial markets and has the potential to upend Europe is something the world woke up to Tuesday morning. What are markets really signaling, and how much danger is there for the global economy? To answer, it helps to tease apart the crosscurrents between Italian politics, European institutions, financial markets and economies worldwide. The New Political Risk in Italy The Italian president, Sergio Mattarella, rejected an anti-E.U. nominee for economy minister, setting the stage for elections later in the year that, if a recent pattern … [Read more...] about The Danger That Italy’s Political Crisis Poses for the Global Economy
Global economy
Here’s another indicator that suggests downside risks to the global economy are growing
After shooting the lights out last year, the global economy has stuttered its way through 2018 so far. Many economic indicators have started to weaken, casting doubt as to whether the crescendo of the “synchronised economic upswing” is now over. Here’s another indicator that suggests the global economy has lost some momentum this year. It’s ANZ Bank’s Global Leading Index (GLI), something the bank says has a close association with global industrial production, leading the hard data by a couple of months. Right now, while global activity levels remain above trend, and improving, the momentum seen in 2017 has now slowed across most major economies, both developed and developing. At this point, ANZ is not concerned by the recent soft patch, but it will be watching developments in the months ahead closely. “At this stage, the fall in the GLI can be seen as lessening the prospect of upside surprises in global growth, rather than necessarily implying the … [Read more...] about Here’s another indicator that suggests downside risks to the global economy are growing
The world’s working-age population is set for a slowdown — here’s what that could mean for the global economy
Gina Heeb, provided by Published 10:16 am, Monday, May 28, 2018 Robert Galbraith/Reuters Economists predict global population growth will slow over the next few decades. Some think that could translate to a fall in worldwide output. But others have argued that automation will be able to offset a declining workforce. Economists predict workforce growth around the world is set for a slowdown, and some worry about what that could mean for the global economy. Recommended Video: Now Playing: U.S. consumer prices rose more than expected in January, with a measure of underlying inflation posting its biggest gain in a year, strengthening expectations the Federal Reserve will have to quicken the pace of interest rate increases this year. The fairly strong inflation report from the Labor Department on Wednesday put more pressure on U.S. financial markets, which were spooked by a surge in annual wage growth in January. Prices of U.S. Treasuries fell on the … [Read more...] about The world’s working-age population is set for a slowdown — here’s what that could mean for the global economy
Putin says sanctions cause the global economy to suffer
Published May 25, 2018 Markets Associated Press Facebook Twitter Comments Print article Russian President Vladimir Putin says the global economy has suffered from politically driven sanctions. Continue Reading Below Speaking Friday at a business forum in St. Petersburg, Putin pointed at "not just erosion but the dismantling of a system of multilateral cooperation that took decades to build." In an apparent criticism of the United States, he said economic sanctions have become a political instrument used to "suppress the competition or extract concessions." Russia-U.S. ties have been strained over the Ukrainian crisis, the war in Syria and accusations of Moscow's meddling in the 2016 U.S. presidential election. The U.S. and its allies have hit Russia with several waves of sanctions that badly hurt its economy. French President Emmanuel Macron, who is also attending the forum, called for improving ties between Russia and the European Union. … [Read more...] about Putin says sanctions cause the global economy to suffer
UN forecasting global economy will expand by over 3 percent
UNITED NATIONS (AP) — The United Nations is forecasting that the global economy will expand by more than 3 percent this year and next year — but it warns that increasing risks could trigger "a shock to investment and trade" and a sharp drop to 1.8 percent growth in 2019.The U.N.'s mid-year report on the World Economic Situation and Prospects launched Thursday says growth in the world economy is surpassing expectations, reflecting further economic expansion in developed countries and broadly favorable investment conditions.However, the report said, "downside risks" have increased including "a rise in the probability of trade conflicts between major economies."Dawn Holland, chief of the U.N.'s Global Economic Monitoring Branch, cited the Trump administration's imposition of tariffs in January and proposed new tariffs against China as well as the renegotiation of the U.S. trade agreement with Mexico and Canada, which has left "a void of uncertainty."There are also negotiations … [Read more...] about UN forecasting global economy will expand by over 3 percent