All articles tagged with #stagnation
Japan's once vibrant economy experienced a sudden halt in the early 1990s, leading to decades of economic stagnation. The recent decision by Japan's central bank to raise interest rates for the first time in 17 years signifies a potential turning point in this unnerving story. Once one of the fastest growing countries, Japan's predicament has changed our understanding of modern economies and provided new tools to address such challenges.
The BBC's Ros Atkins delves into the lack of movement in the Ukraine war front line, highlighting three key locations to illustrate the stagnation of the conflict, nearly two years after Russia's invasion.
Nobel economist Paul Krugman warns that China is entering an era of stagnation and disappointment due to its unsustainable economic model, characterized by ultra-low consumer spending and heavy reliance on investment. He compares China's situation to Japan's economic struggles in the 1980s but expresses concern that China may not emerge as unscathed. Krugman attributes part of the problem to President Xi Jinping's interventions and emphasizes the need for China to address its economic woes without resorting to military adventurism.
The U.K. economy experienced no growth in the third quarter, signaling a period of stagnation and potentially leading to a recession. The housing industry has been hit hard by high interest rates, causing the services sector to contract. The manufacturing industry also slumped, while repairs helped offset the decline in new work in the construction sector. In comparison, Europe is facing similar stagnation, while the United States continues to experience strong economic growth. The Bank of England predicts minimal growth for the U.K. economy in the coming months, with high interest rates expected to further impact business investment and consumer spending. The government plans to introduce measures to bolster the economy, but substantial changes to taxes or spending are not expected at this time.
BlackRock strategists predict that U.S. corporate earnings growth will remain stagnant in the third quarter, despite hopes for a positive turnaround. They believe that the market narrative of a resilient economy is masking a "stealth stagnation" trend that has gone unnoticed due to strong consumer spending, GDP, and job growth. With interest rates expected to stay higher for longer, the team is overweight on short-dated Treasurys and favors quality in equities and fixed-income. They also see potential in artificial intelligence, the rewiring of globalization, the transition to a low-carbon economy, and the future of finance.
California's population, which had been steadily growing for 170 years, is projected to stagnate for the next four decades, according to recent data released by the state Finance Department. The state has experienced a reversal in population growth due to factors such as declining fertility rates, an aging baby boomer generation, and increased outmigration. The high cost of living, housing crisis, and growing economic divide have contributed to the state's challenges in attracting and retaining residents. The projected population stagnation could have implications for California's political influence, consumer spending, and labor force. However, California still remains the most populous state in the nation and retains its foundational industries, offering some hope for its future.