Charting the global economy: IMF sees a soft landing for Europe
recession, but getting inflation back to normal levels may take several years, according to the International Monetary Fund.
The growth outlook in Asia looks sour as China struggles to lure foreign investment, Hong Kong growth lags behind and Indonesian exports deteriorate.
In the US, inflation expectations continued to climb as consumers anticipated higher gas prices. Separate data from the Census Bureau show how inflation is still inflicting significant financial stress for many Americans.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
Europe
Europe’s economy is unlikely to crash — even as a more-than yearlong bout of interest-rate increases tames inflation, according to the IMF.
While rising wages are aiding Europe’s economic recovery, they also risk stoking further inflationary pressures — especially if they aren’t matched by improvements in productivity, the IMF said.
Less than a month after the opposition won a parliamentary election, Poland’s central bank is again worried about inflation. The U-turn is set to fan speculation about the role of politics in the governor’s policy calculus.
Asia
China is struggling in its attempt to lure foreigners back as data shows more direct investment flowing out of the country than coming in, suggesting companies may be diversifying their supply chains to reduce risks.
Foreign direct investment fell $11.8 billion in the July-to-September period, marking the first contraction since records started in 1998.
Hong Kong lowered its economic growth forecast for this year in a sign that tough times are still ahead for the financial hub amid a muted post-pandemic recovery. The revision comes after the city reported
