Global Economy

Stay up to date with insights into the global economy.

World Economy

What’s Really Going on in the World Economically

(Reading time: 1 - 2 minutes)

...Without the Bullshit

The Global Financial World has had a lot going on over recent years. Ever since the Global Financial Crisis, interest in the economic situation has peaked among the general public, although it is easy to get lost in the financial jargon.

So what's really happening in in the economy?

Global economic data was largely positive in August as the post-Brexit recovery continued. In the main, economic data showed signs of stabilising and surprising to the upside, pointing towards continued, gradual economic growth.

China's economic data was also better than expected in August, supporting the view that the economic growth has stabilised at about 7%. Industrial production, power consumption, retail sales, investment and growth in credit all notched higher.

In the UK, the Bank of England left monetary policy on hold while in Europe, the industrial production made a reasonable comeback from declines in July.

US economic data was soft as retail sales and industrial came in weaker than expected and small business confidence edged lower. However, the soft tone may well reduce the likelihood of a US rate rise, reducing some of the uncertainty deeply disliked by markets everywhere.

In Australia, business confidence was up although jobs data were mixed. However, Australia has a seldom-discussed positive in its corner. Amid global concerns of developed economies running out of monetary policy rope, the Reserve Bank has never resorted to quantitative easing, yet still, has 1.5% up its sleeve.

So in short, although there is constant volatility, things seem to be getting a little better around the world, and the share markets generally seem reasonably good value.

 

Still have some questions?

If you want to discuss your investment portfolio with one of our advisors. Call us to arrange an appointment on 02 9328 0876.

 

General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.