Wall Street Journal (September 15)
“The world’s second-largest economy is faring worse than previously thought, with government stimulus measures proving too short-lived to counter China’s sharp real-estate downturn or to prop up flagging factory output.” The slowdown in growth was highlighted by a slump in industrial production which fell to levels last seen during the financial crisis. “The falloff comes as Europe is stumbling and the U.S. recovery looks more moderate than expected, leaving the world in search of economic growth.”
Tags: China, Downturn, Economy, Europe, Factory output, Financial Crisis, Government, Growth, Industrial production, Real estate, Recovery, Stimulus, U.S.
The Economist (August 30)
“If Germany, France and Italy cannot find a way to refloat Europe’s economy, the euro may yet be doomed.” With inflation “perilously low” at just 0.4%, “the euro zone stands (or wobbles) in stark contrast with America and Britain, whose economies are enjoying sustained growth.”
The Economist (July 19)
The weak recovery continues in the U.S. with many economists estimating potential growth of 1.75%-2.0%. “Evidence is mounting that America’s potential growth rate has plummeted…. Solving the short-term problem means boosting demand, so the Federal Reserve should keep interest rates low. But to pep up long-term growth, America also needs to address the supply side. In particular, it needs more workers and faster increases in productivity.”
Tags: Federal Reserve, Growth, Interest rates, Productivity, Recovery, U.S., Weak, Workers
Wall Street Journal (June 6)
Mario Draghi is again being pressed “to rescue Europe’s politicians from their own economic failures. If only the politicians would give him pro-growth economic reform in return for all of his monetary exertions.” Under Draghi’s leadership, the EU Central Bank taken additional measures to stimulate the economy, including charging banks interest on funds deposited with the central bank, in the hope that bankers will be more inclined to lend their funds to businesses and individuals.
Tags: Banks, Draghi, Economy, EU Central Bank, Europe, Failures, Growth, Interest, Lending, Monetary stimulus, Politicians, Reform
The Economist (May 3)
“After years in the doldrums, big mergers and acquisitions (M&A) are making a comeback. Optimists hope this is a sign of bosses daring to be bold because of improving economic prospects. Sceptics wonder if the managers are in fact doing deals to conceal a worrying lack of growth opportunities—or just cutting costs by merging with companies in kinder tax jurisdictions.”
Tags: Bold, Bosses, Comeback, Costs, Doldrums, Economic prospects, Growth, Jurisdictions, M&A, Managers, Opportunities, Tax
Wall Street Journal (April 10)
“The U.K. and U.S. economies are recovering, and pessimistic predictions that fiscal consolidation was incompatible with economic recovery have turned out to be comprehensively wrong,” writes George Osborne. The UK’s chancellor of the exchequer is equally upbeat that the both countries will surpass the “gloomy arguments” being put forth by pessimists of secular stagnation. Free markets continue to be the “engines of progress…. we can secure lasting economic growth and ensure that all of our citizens benefit.”
Tags: Chancellor, Citizens, Economies, Free markets, George Osborne, Growth, Predictions, Progress, Recovering, Recovery, Secular stagnation, U.K., U.S., Upbeat
Forbes (March 13)
“Like Iceland in its heyday, Singapore’s economic stability and vitality – on the surface at least – has made it the envy of the world at a time when most Western economies are languishing with feeble growth, and high rates of unemployment and poverty.” And, just like Iceland, the Switzerland of Asia will suffer when its economic bubble is punctured. In the meantime, “Singapore’s bubble economy may continue inflating for several more years if the U.S. Fed Funds Rate and SIBOR continue to be held at such low levels.”
Tags: Asia, Bubble, Economic stability, Fed, Growth, Iceland, Poverty, SIBOR, Singapore, Switzerland, U.S., Unemployment, Western economies
Financial Times (March 4)
The Chinese Government appears to be getting serious about tackling air pollution. “The danger is that the leadership of the Communist party will conclude that it needs fast growth more than it needs clean air, clean soil and clean rivers. That would be a mistake.”
Tags: Air pollution, China, Clean air, Clean rivers, Clean soil, Communist party, Government, Growth, Leadership
The Economist (January 25, 2014)
“In some ways, China’s market is still the world’s most enticing. Although it accounts for only around 8% of private consumption in the world, it contributed more than any other country to the growth of consumption in 2011-13.” But China is proving vexing to foreign firms as they find themselves subject to government whims, strong local competition, a tighter labor market and slowing growth. Some are scaling down. Others stumbling or even pulling out. “China is still a rich prize. Firms that can boost productivity, improve governance and respond to local tastes can still prosper. But the golden years are over.”
Tags: China, Competition, Consumption, Enticing, Foreign firms, Golden years, Governance, Government, Growth, Labor market, Productivity, Slowing
Financial Times (December 31, 2014)
“Japan is no longer a backwater for investors…. The authorities are saying the right things and doing most of them.” Japan outperformed in 2013 and despite concerns over the consumption tax increase in 2014, Japan’s prospects remain robust. “With a wide range of one-off stimulus measures in force to counter a shock that may not come, we think growth could surprise significantly to the upside.”