The Intelligence from The Economist The new mediocre: the world economy
Apr 9, 2019
Simon Cox, Emerging Markets Editor for The Economist, and Jonathan Rosenthal, Africa Editor, dive into today's global economic landscape and the rising jihadist threats in the Sahel. They discuss the IMF's cautious growth forecasts, signaling a new era of low economic growth rather than recession. Cox highlights the complicated dynamics of global recovery, while Rosenthal examines the challenges of training local troops to counter terrorism, raising moral questions about foreign military interventions. Together, they navigate pressing issues like climate concern's fleeting nature.
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Global Economic Slowdown
- The IMF predicts a global economic slowdown, revising its growth forecast down from 3.5%.
- However, they do not anticipate a recession, expecting the slowdown to bottom out by mid-year.
Reasons for Economic Slowdown
- Several factors contribute to the global economic slowdown, including China's credit slowdown and trade tensions with the US.
- The Federal Reserve's interest rate hikes and the Eurozone's persistent weakness also play a role.
Policy Responses to Slowdown
- Policymakers have tried to address the slowdown. The Fed has paused interest rate hikes, and China is now working to boost growth.
- Increased spending from Germany, with its strong economy, would also be beneficial.