The dynamics of the global market vis-à-vis all those markets where a global liquidity that in 2019 reached 130 trillion dollars, well above the global GDP of 80 trillion dollars, is looking for a way out, tends to be the most decisive for the developments in the global economy. There are estimates that today this …
Tag: economy
The US “Productivity Paradox” appears again
The recent release of data on non-farm labor productivity in the US economy confirmed concern about a continued downward trend in this critical indicator. Labor productivity fell in the second quarter of 2022 by 4.6% as output fell by 2.1% and total hours worked increased by 2.6%. Compared to a year ago productivity fell by …
Stagnant Inflation Management
In recent times, the global economy has entered a strong inflation component based on ever-increasing energy and food prices. If the causes of price increases are limited to the region of Europe, and given that the EU is purely an importer of energy, one could argue that this is an “imported inflation” over which monetary …
Where are the Economies and Businesses going after the Pandemic and War crises?
The West is also involved in the conflict between Russia and Ukraine, imposing successive sanctions on Russia, while Russia threatens to close the energy supply tap to Western countries. Transiently continuing volatility in the stock markets is normal and expected. After all, the big fluctuations also result in the big benefits-profits, for those, of course, …
The South Eurozone on the red line due to the Explosion of Borrowing Costs
Due to rising global and mainly European inflation, interest rates are generally rising as central banks fight inflation and this is certainly not a time when investors want to increase their exposure to government bonds. Trust Economics points out that Greece’s public debt (Eurozone / EU country) remains viable despite rising borrowing costs and estimates …
Big Problems for the European Economy
The development of the war in Ukraine leaves no room for optimism for the European economy. It is clear that the longer the war lasts, the greater its economic impact. At the moment we have the terrible accuracy that comes from inflation, which in turn is due in large part to the energy crisis intensifying …
What Can trigger a Prolonged Global Recession?
With Russia’s war in Ukraine a month away, Trust Economics (https://trusteconomics.eu) has its estimates for the global economy outlook this year. Within this short period of time, forecasts shifted from a limited recovery after COVID to an increasing chance of a full-blown global recession. The chances of a recession are rising, given the volatile inflation …
New Challenges for EU Member-Countries Economies
The war in Ukraine has entered a new phase and according to the estimates of the Americans, who have shown that they correctly record and interpret the movements of the Russians, it is going to be quite long. The Russian war machine proves to be inferior to its reputation. A month of hostilities has been …
The De-dollarization of the World Economy
In 1971, the US government, faced with stagnant inflation and a major global financial crisis, announced the US withdrawal from the Bretton Woods system of agreements, which meant that, in technical terms, all currencies became coin-to-currency currencies. to be regulated in the financial markets. Of course, the changes brought about by the abandonment of the …
The German Economy Is Heading for a New Recession
The scenario of stagnant inflation in the German economy is visible, which is the worst possible at this time. Extremely worrying are the data for the German economy for the fourth quarter of 2021. In fact, the forecast of Trust Economics (https://trusteconomics.eu) is that, if the problem of the pandemic continues and Q22022 the next …