The future of global growth is in peril. [It was already in peril *before* the pandemic, as energy-constraints in particular were biting – we were just papering over that reality with totally unsustainable amounts of debt.].
“Climate change, COVID, and ensuing supply-chain disruptions have created a perfect storm that will retard economic growth [ie we are bumping up hard against the *limits to growth*] and development unless we unite to act quickly…
“…the most eye-opening development of the past three months has been the dramatic increase in the frequency, severity, and global scope of extreme weather: storms, droughts, heat waves, higher average temperatures, fires, and floods.” [None of that’s getting any better!]
The IMF will distribute about $650 billion in new Special Drawing Rights to its members on Monday, providing a “significant shot in the arm” for global efforts to combat the COVID-19 pandemic, Managing Director Kristalina Georgieva said.
“The International Monetary Fund’s largest-ever distribution of monetary reserves will provide additional liquidity for the global economy…”
Wealthy nations under pressure to pass IMF stimulus on to poor countries.
“Wealthy countries are under mounting pressure to hand over their share of a historic IMF support package to the world’s poorest economies, which are struggling with the impact of the coronavirus pandemic.”
Today, 56% of US moms that need childcare still don’t have access to full-time, reliable care.
“…childcare is often the second-largest monthly expense for families after their mortgage or rent payment… we review some of the factors causing the perfect storm that is the childcare crisis.”
UK plunges towards supply chain crisis due to staff and transport disruption.
“Britain’s economy has been plunged into a supply chain crisis, with major retailers’ stock levels at their the lowest since 1983 as a result of worker shortages and transport disruption caused by Covid and Brexit… stock levels in relation to expected sales fell to their lowest level in August since [records began] almost four decades ago.”
German exports to China fall for first time in nearly a year.
“German exports to China declined for the first time in nearly a year in July, easing by 3.9% year-on-year to 8.4 billion euros ($9.9 billion), the statistics office said on Wednesday.”
Covid shutdowns at Chinese ports squeeze container rates. Pandemic problems at Yantian caused container prices to triple between June and August, Container xChange says.
“Weary shippers are likely to encounter reduced container availability and rising prices at key maritime hubs in the coming weeks, thanks to a continuing spate of Covid-19 outbreaks at ports in China and Vietnam…”
Covid surge triggers fresh travel slump in China.
“China’s aviation and hospitality sectors have suffered a sharp drop in demand amid a return of Covid-19 restrictions after leading the world’s pandemic recovery for more than a year.”
China to ensure ‘appropriate money growth’ after credit, economic slowdown… China’s economy decelerated more than expected in July..
“New credit expanded in July at the slowest pace since February 2020, driven by a sharp slowdown in shadow banking and government bond issuance.”
South Korea’s youth debt binge shows no sign of slowing as rate hike looms.
“A debt binge fuelled by young Koreans… desperate to invest is one of the trends worrying the country’s central bank, which could deliver its first interest rate rise in three years on Thursday… One particular concern for policymakers is the fact that recent curbs appear to have had little immediate impact on such borrowing.”
Is South Korea headed for asset bubble collapse?
“…Today, amid Korea’s snowballing household debt in fast-surging asset markets from housing to stock, critics have been ringing the alarm and suggesting Asia’s fourth-largest economy might be following in Japan’s footsteps. A bubble burst is imminent here, they say.”
The coronavirus disease (COVID-19) pandemic has pushed an estimated 75 million to 80 million more people in developing Asia into extreme poverty as of last year…
“The ”Key Indicators for Asia and the Pacific 2021” says the pandemic is threatening Asia and the Pacific’s progress toward critical targets under the Sustainable Development Goals (SDGs).”
“Coronavirus: Asia’s economic recovery losing momentum as Delta variant knocks wind out growth… The rapid spread of the highly infectious Delta variant and low vaccination rates have caught much of Asia off guard.”
Chip Shortage Set to Worsen as Covid Rampages Through Malaysia…
“Now Covid-19 infections are soaring in the country, jeopardizing plans to lift lockdowns and restore full production capacity.”
Recession possible as ‘profound’ economic downturn driven by COVID lockdown hits Australia.
“Last year, the pandemic induced an acute economic crisis which ultimately led to a recession. We’re in a different type of economic struggle now: It’s less acute, more drawn out and with deep-seated anxiety.”
Africa: Concern Over Rising Debt As Africa Faces First Recession in 30 Years.
“Regional borrowing induced by macro economic impacts of the Coronavirus pandemic – which has led to the first economic recession in Africa for thirty years, is placing citizens at great risks, the African Forum and Network on Debt and Development (AFRODAD) has noted.”
South Africa Unemployment Rate Rises to Highest in the World… South Africa’s unemployment rate surged to the highest on a global list of 82 countries monitored by Bloomberg.“
The jobless rate rose to 34.4% in the second quarter from 32.6% in the three months through March…”
Is Afghanistan-made methamphetamine about to flood Europe?
“…In some parts of Afghanistan, methamphetamine output already appears to be outpacing that of opium. But, researchers have argued, not enough attention has been paid to the burgeoning illegal drug trade.”
Fuel shortages bring Lebanon to a standstill…
“The economic collapse that has caused Lebanese mounting hardship for two years hit a crunch point this month with fuel shortages paralyzing even essential services and miles-long queues forming at gas stations with little or no petrol to sell.” [photos]
Haiti’s heartbreak as chronic political and economic crises hamper disaster response after quake…
“A debilitating power vacuum compounded by a devastating earthquake — a grim reality fuelling growing resignation that the help so many need may never arrive.”
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.
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