Charting the global economy: China’s growth stalls, Europe slips towards recession
Central bankers in China and Turkey bucked a global trend of raising interest rates, with officials easing policy amid signs of an economic slowdown in those countries.
China is battling a worsening property downturn as well as sluggish retail sales and rising youth unemployment. In Turkey, where inflation is running at the fastest pace in 24 years, policy makers said they’re only responding to a possible slowdown in manufacturing.
Elsewhere, growth is diverging. The euro-area and Chile are under heightened recession risk, while strong consumer spending in Japan propelled the country to its pre-pandemic size in the second quarter. Still, Japan’s economy has been slower to recover than other nations, economists said.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
China’s economic slowdown deepened in July due to a worsening property slump and continued coronavirus lockdowns, with an unexpected cut in interest rates unlikely to turn things around while those twin drags remain. Retail sales, industrial output and investment all slowed last month and missed economists’ estimates. China’s central bank cut both one-year and seven-day lending rates by 10 basis points.
Japan recovered to its pre-pandemic size in the second quarter, as consumer spending picked up following the end of coronavirus curbs on businesses. Gross domestic product for the world’s third-largest economy grew at an annualized pace of 2.2% in the second quarter.
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