“The global economy has entered a period of “synchronised stagnation” with weak growth in some countries and no growth or a mild contraction in others, according to research by the Brookings Institution think-tank and the Financial Times.
“Headline economic indicators have slipped to their lowest levels since the spring of 2016, with real activity in both advanced and emerging economies losing momentum, compounded by falling economic confidence, the latest update of the tracking index has found.
“Only relatively strong performance in financial markets stopped the index from falling further into negative territory.”
“Global authorities gathering in Washington this week must stand ready to address emerging risks including a global economic downturn and Brexit, the leading body for global financial stability has warned.
“The Financial Stability Board – which was formed after the 2008 banking crisis that brought the financial system to its knees – said that while much has been achieved in the past decade, its job was “far from complete”.”
“Cuba’s President Miguel Díaz-Canel has said the island is currently operating with 62% of the petrol it needs, and announced emergency measures to “disrupt the plans of imperialism”.
“Across the island, production has been cut and stopgaps found, so that fuel can be prioritized for hospitals, schools and food distribution.”
“Huge crowds sang and danced in the streets of Port-au-Prince [Haiti] on Sunday as part of an anti-government rally organized by the art community.
“Protesters are calling for President Jovenel Moise to resign amid corruption allegations, rising inflation and food and fuel shortages. Many blame him for the economic crisis, but Moise has denied any wrongdoing.”
“Ecuador President Lenin Moreno on Saturday ordered the capital Quito and surrounding areas placed under curfew and military control, on the 11th day of deadly protests against government austerity measures.
“The order would “facilitate the work of public forces against intolerable outbreaks of violence,” he announced on Twitter.”
“A series of protests from opposition groups in recent weeks — sparked by the [Korean] president’s appointment of Cho Kuk as the justice minister tasked with carrying out the reforms…
“…have dealt the latest blow to the Moon government.
“On Monday, Mr Cho, a close aide to the president, stepped down just weeks after taking office.”
“A slide in China’s exports picked up pace in September while imports contracted for a fifth straight month, pointing to further weakness in the economy and underlining the need for more stimulus as the Sino-U.S. trade war drags on.”
“Chinese auto sales fell in September for the 15th month in 16, extending their unprecedented slump despite government efforts to support the world’s largest car market.
“Sales of sedans, sport utility vehicles, minivans and multipurpose vehicles dropped 6.6% from a year earlier to 1.81 million units, the China Passenger Car Association said in a statement Saturday.”
“…the problems aren’t just cooling global growth, but also more sluggish domestic activity, reflecting both anemic production and demand.
“This has ignited hopes for a forceful economic stimulus package from Beijing, as the world has relied on during previous periods of weakness over the past decade. But this time, it appears such hopes are in vain.”
“The World Bank joins a parade of multilateral institutions, rating firms and brokerages in cutting economic growth estimates for India, after Asia’s third-largest economy grew at the slowest pace in six years in the June quarter because of a demand slump.”
“Iran’s economy is expected to contract further by 8.7% in 2019-20 due to external shocks to oil and gas output.
“The plummeting exports comes after the expiration of US waivers to major importers of Iranian oil and tightening of banking restrictions in addition to new sanctions being imposed on the country’s petrochemical, metals, mining and maritime sectors.”
“The global economy is wobbling and whether it topples over is the big question in financial markets, executive suites and the corridors of power.”
“The world’s finance ministers and central bankers will be in Washington this week for the annual meetings of the International Monetary Fund and World Bank amid growing concerns that the global economy is heading towards stagnation.
“Predictions of a sharp downturn fill policymakers with anxiety, knowing that job losses and lower tax revenues can only lead to social unrest.”
“Investors are flocking to the relative safety of money market funds at the highest level since the financial crisis-era collapse of Lehman Brothers in 2008.
“The industry has pulled in $322 billion over the past six months, the fastest pace since the second half of 2008, bringing assets to nearly $3.5 trillion, according to data from FactSet and Bank of America Merrill Lynch.”
“Analysts at the International Monetary Fund (IMF) are comparing current global financial conditions to the types of conditions that sparked the global financial crisis of 2008 – a crisis that stemmed from the US mortgage market.
“The report shows that US-induced vulnerabilities are still present, representing a widespread economic threat.”