Global Economics

Global Synchronized Growth: Why Now?

The global economy is running on all six cylinders. It may not be a global synchronized boom, but it is the most synchronized expansion of economic activity that the global economy has had since the recovery from the 2008/2009 recession. The direction of change can be seen in the titles of the pa ...

Canadian Economy Surprises with Strong GDP Growth in 2Q

Canada’s economy unexpectedly accelerated at a 4.5 percent pace in the second quarter — tops among Group of Seven countries — led by the biggest binge in household spending since before the 2008-2009 global recession. Annualized growth was the fastest in six years and topped the 3.7 percent a ...

Should Central Banks Go Negative Now?

Tim Wallace of The Telegraph reports, Prepare for negative interest rates in the next recession, says top economist:Negative interest rates will be needed in the next major recession or financial crisis, and central banks should do more to prepare the ground for such policies, according to leading ...

Second-quarter GDP growth in the developed economies: mostly good news

The summer is a good time to review the recent quarterly data for economic growth published in the leading developed economies. In most cases, these are preliminary estimates so they may be subject to adjustment in coming the months. The data concerned applies to second-quarter growth. An analys ...

The growing economic clout of the biggest emerging markets in five charts

Global economic growth is accelerating. After registering the slowest pace since the 2007-2009 financial crisis in 2016, global growth is expected to rise to a 2.7 percent pace this year and 2.9 percent over 2018-19. While much has been said about better economic news from the major advanced econom ...

Europe’s Long‑Term Economic Outlook: Better Now, Challenges Ahead

When PIMCO professionals gather for our annual Secular Forum to discuss the long-term global economic outlook, views on Europe invariably gravitate on two themes: anemic GDP growth and political risk. However, recent developments are challenging these views. The eurozone’s economic expansion is e ...

Periphery Leads Euro zone Bond Yields Down as Flash PMI Dips

Euro zone flash composite PMI dips Bond yields lower, reverse early rise Mersch: unlikely that easy policy will remain too long Bond yields in Italy and Portugal hit their lowest levels in around a month on Monday, leading a fall in euro zone borrowing costs as signs of slowing growth in business ...

IMF Sees U.S. Fading as Global Growth Engine

Fund lowers forecast for U.K. growth after soft first quarter Growth seen picking up in China, Japan, euro zone, Canada The world is leaning less on its biggest economy to sustain the global recovery, according to the International Monetary Fund. The fund left its forecast for global growth unc ...

A Firming Recovery

By Maurice Obstfeld July 24, 2017 A building in Tokyo, Japan. The global recovery is on a firmer footing, with growth revised up for Japan, the euro area, China, and for emerging and developing economies more generally (photo: Issei Kato/Reuters/Newscom) The recovery in global growth tha ...

Political Risk Jitters

Bloomberg News said Robert Mueller, the special prosecutor looking into claims Trump’s campaign worked with Moscow to sway the presidential election, would look into past transactions involving the tycoon’s firms and Russians in the past. “Just last week President Trump said expanding the inv ...