Long Run Focus How inequality affects the long-run outlook Substantial fiscal support helped to prevent a big rise in income inequality within developed economies during the pandemic. But inequality was rising in many DMs before then and could revert to that... 3rd May 2022 · 18 mins read
Africa Data Response South Africa Manufacturing PMI (Apr.) The plunge in South Africa’s manufacturing PMI in April suggests that there was a large blow to activity from flooding in a key province and renewed power cuts. One consequence of this economic... 3rd May 2022 · 2 mins read
Middle East & North Africa Data Response Saudi Arabia GDP (Q1, Flash Estimate) Saudi Arabia’s economy expanded by a robust 2.2% q/q in the first quarter of the year, which translated into year-on-year growth of 9.6% – the fastest pace recorded since 2011. With oil production to... 3rd May 2022 · 2 mins read
China Data Response Hong Kong GDP (Q1 Preliminary) Hong Kong’s GDP contracted in the first quarter of the year, and although there are signs that activity is rebounding, we expect the recovery to prove weak. While virus containment measures are being... 3rd May 2022 · 3 mins read
Asia Data Response Manufacturing PMIs, Korea Trade (Apr.) Regional Manufacturing PMIs point to a further worsening of industry conditions, chiming with Korean trade data which suggest a major softening of external demand. Both reinforce the view that... 3rd May 2022 · 3 mins read
Global Economics Update PMIs: Activity weakening as price pressures strengthen The latest manufacturing PMIs suggest that activity got off to a weaker start in Q2, as lockdowns in China led to a sharp fall in activity there. Forward-looking components of the surveys – including... 2nd May 2022 · 2 mins read
US Data Response ISM Manufacturing Index (Apr.) The decline in the ISM manufacturing index to a 20-month low of 55.4 in April, from 57.1, is mostly due to weakening demand amid a broader slowdown in global manufacturing, rather than a renewed... 2nd May 2022 · 2 mins read
Commodities Prices to stay high for longer The war in Ukraine and its negative impact on commodities supply has prompted us to revise up our forecasts for the prices of most commodities in 2022. Regardless of the outcome of the war, we think... 29th April 2022 · 40 mins read
Africa Economics Weekly SA’s privatisation push, Africa’s growing food insecurity Momentum appears to be building within South Africa’s ruling ANC party to shift towards a more private sector-led economic model. But given the party’s track record, we wouldn’t hold our breath... 29th April 2022 · 5 mins read
Canada Economics Weekly Business surveys strong, but clouds gather for housing The CFIB Business Barometer remained very strong in April and seems to bode well for the short-term outlook, but signs of a sharp slowdown in the housing market suggest that higher interest rates may... 29th April 2022 · 5 mins read
Asia Chart Pack Tightening cycles to be gradual Central banks across the region have recently turned more hawkish. Over the past month or so, policymakers in Korea, Taiwan, Singapore, Sri Lanka, India and Pakistan have all tightened policy... 29th April 2022 · 14 mins read
Emerging Europe Economics Weekly Hungary’s growing imbalances, Russian gas flows Comments from Hungary's central bank this week suggest that policymakers are moving closer towards a joint tightening of monetary and fiscal policy to cool demand and narrow the twin deficits... 29th April 2022 · 7 mins read
China Chart Pack China will barely grow in dollar terms this year President Xi has reportedly told officials to ensure that China’s real GDP growth exceeds that of the US this year. This is likely to happen on paper. The published data usually confirm that growth... 29th April 2022 · 12 mins read
Asia Economics Weekly Indonesia palm oil ban Indonesia has caused turmoil in global commodity markets over the past week with its decision to ban exports of palm oil. However, given the importance of the sector to Indonesia’s economy and the... 29th April 2022 · 5 mins read
Canada Data Response GDP by Industry (Feb.) The jump in GDP in February means that, despite the Omicron wave, the economy was even stronger than expected in the first quarter. But signs of a sharp slowdown in the housing market in April suggest... 29th April 2022 · 2 mins read
US Economics Weekly Fed to ignore Q1 GDP and hike regardless We doubt that the unexpected 1.4% annualised decline in first-quarter GDP will stop the Fed from hiking its policy rate by a bigger 50bp next week or from launching quantitative tightening. The Fed... 29th April 2022 · 8 mins read
