Global economy slows
It had been growing by 4% a year, then slumped in 2008/09 and swiftly returned to 4% growth in 2010. Since then it has hovered at around 3%, but now seems to be heading towards just 2%.
All this is captured in the most insightful single line I have ever seen – The Economist magazine’s regular chart on overall global economic growth.
The commentary on 13th September highlighted that:
- Brazil has slipped into recession
- Russia has stalled
- Japan’s new sales tax has depressed consumption
- Euro area growth was a mere 0.7% in the year to June
- China contributed 45% of total global growth.
2.6% is not to be sneezed at, but 4% would be far healthier.