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Economic Updates

Read economic updates from Alexander Funds' Chief Economist Stephen Roberts

Posts about Economic Roundup:

Economic Roundup - May 2022

Economic Roundup - May 2022

Global economic growth is losing pace weighed by lessening monetary and government budgetary policy support as well as rising cost of living pressures. Downside risks to economic growth abound from rising interest rates, disruption to food and energy supplies as the war in Ukraine continues and China’s reliance on lockdowns to contain Covid outbreaks. Yet the underpinnings for economic growth remain firm from low unemployment rates in many major economies as well as the past build-up of household savings. If global recession lies ahead, it is not on the cards for another year at least.

Economic Roundup - March 2022

Economic Roundup - March 2022

Global economic growth remains strong although concerns about weaker future growth are increasing with the Ukraine war adding to high inflation and central banks under increasing pressure to act more forcefully to contain inflation. Government bond yields are rising fast with bond markets starting to recognise that the prolonged period of disinflation is over, and that inflation will settle longer term at a higher annual rate than it has in recent decades at cycle low points. While business and consumer sentiment are weakening, strong past economic growth still has momentum reinforced by a build-up of household savings through the Covid pandemic that could be spent, as well as greater growth in government spending than is usual in strongly recovering economies.

Economic Roundup - February 2022

Economic Roundup - February 2022

Global economic growth was resilient in the face of the Omicron wave in February, but with high inflation a threat to growth prospects. Central banks are talking tougher in terms of quick removal of unconventional monetary policy support, but most have not started to lift emergency-low official interest rates and when they do start are indicating a slow passage back to normal or neutral interest rate settings. The Omicron wave is fast subsiding reducing one threat to global growth prospects, but the outbreak of war in the Ukraine with its attendant risk of a wider European and global conflict presents risks of lower global growth and higher inflation.

Economic Roundup - January 2022

Economic Roundup - January 2022

High inflation and mostly strong economic growth featured among the world’s major economies during January although immediate economic growth prospects are softer because of the Omicron wave. Also, key central banks, including the US Fed, are promising to act tougher on inflation words not matched by actions so far that have been modest, or non-existent. The threat of higher official interest has unsettled financial markets but has not undermined still strong medium-term growth prospects for the real global economy. Those firm growth prospects may be enhanced as China’s slowing growth rate through 2021 returns to stronger footing helped by more stimulatory policy settings.