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The global economy is under serious pressure. What should be on your radar?

On Point

TODAY’S NEWS. TOMORROW’S INSIGHTS.
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Edited by Katy McLaughlin
Senior Editor, Southern California

Watching the world economy

In the news

•

Seismic activity. The global economy faces structural changes due to aging populations, the climate crisis, and a retreat from globalization. Each of these drivers cause a chain reaction: aging populations, for example, mean fewer workers, which could trigger inflation and provoke tighter monetary policies. Fallout from these tectonic shifts can only be mitigated by deep reforms to education, healthcare, the energy system, and investments in innovation, all with the goal of improving efficiency and productivity. [Reuters]

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Spotlight on India. What’s gone up while everything else has gone down? The Indian economy, which is expected to grow at least 7% this year—more than twice the amount the world economy is projected to grow. The country’s rebounding economy drew strength from a massive COVID-19 vaccination effort that helped to revive investment and consumer spending. While other large economies face slowdowns and possible recessions, India’s economy is looking like a global bright spot. [NYT]

Global indicators are reflecting the general slowdown, with a noticeable time lag, as disruptions crowd one upon the other.

On McKinsey.com

•

Falling back. In most of the world, signs of slowing growth are proliferating. US GDP contracted 0.6% on an annualized basis in the second quarter of 2022, following a –1.6% decline in the first quarter. GDP growth in China slowed to 0.4% in the second quarter, after growth of 2.5% in the first half of 2022. The eurozone outpaced expectations, with GDP growth at 0.6% in the second quarter and 1.1% growth in the first half. But growth expectations for the rest of the year are unusually fraught, as Europe in particular faces surging energy prices as a consequence of the war in Ukraine.

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Springing forward. Energy independence is proving costly to Europeans: on August 26, Europe’s benchmark natural gas price reached 30 times the level of two years ago, which has helped drive consumer inflation in the eurozone to 8.9% in July. Elsewhere, inflation declined slightly from the prior month, to 8.5% in the US, 10.1% in Brazil, and 6.7% in India. In China, inflation ticked up to 2.7%. Dive into McKinsey’s data-rich analysis of the world economy.

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:27 - 19 Sep 2022

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The week in charts

A leader’s guide to social responsibility

The global economy is under serious pressure. What should be on your radar?

Watching the world economy

In the news

Global indicators are reflecting the general slowdown, with a noticeable time lag, as disruptions crowd one upon the other.

On McKinsey.com

Archives

in

info@learn.odoo.com

The week in charts

A leader’s guide to social responsibility

The global economy is under serious pressure. What should be on your radar?

﻿Watching the world economy

In the news

Global indicators are reflecting the general slowdown, with a noticeable time lag, as disruptions crowd one upon the other.﻿

On McKinsey.com﻿

Watching the world economy

Global indicators are reflecting the general slowdown, with a noticeable time lag, as disruptions crowd one upon the other.

On McKinsey.com