A steady stream of pieces from global economists over the last few weeks have described the current global malaise affecting all economic regions. Be it slower growth in the US, a lack of demand in Emerging Markets or the huge debt hangover impacting the EU. It seems the symptoms are easy to identify as are the causes - but will anyone be able to make decisions required to get to the right solution?
The International Monetary Fund and others have recently revised down their forecasts for global growth – yet again. Little wonder: the world economy has few bright spots – and even those are dimming rapidly. Among advanced economies, the US has experienced two quarters of growth averaging 1%. Further monetary easing has boosted a cyclical recovery in the eurozone, though potential growth in most countries remains well below 1%. In Japan, so-called Abenomics is running out of steam, with the economy slowing since mid-2015 and edging close to recession. In the UK, uncertainty surrounding the June referendum on continued EU membership is leading firms to keep hiring and capital spending on hold. And other advanced economies – such as Canada, Australia and Norway – face headwinds from low commodity prices.