Thursday, October 7, 2021

World growth slows from strong rebound

 The chart shows the GDP-weighted average of PMIs for 8 key regions/economies in the world―the USA, UK, China, Japan, the EU, Brazil, Russia and India.  Each national PMI was individually extreme-adjusted before the total was calculated.  




The rebound from the covid crash low was stronger than from the GFC low in 2009/2010, and although growth has slowed a little, it's not very much.  Implication: emergency measures to stimulate economies are likely to be withdrawn.  World discount rates (bank rates) have already started to rise.




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