There is concern about the economy from China to America and Europe. In America, the figures of jobs and inflation have definitely come down, but the improvement is not yet what was expected. Inflation is again increasing in European countries. German companies are now shifting production to other countries as they are facing the pressure of fuel prices. The kind of economic indicators that are coming out in China, it seems that the government there still needs to do more work. The condition of Britain is also very bad. The meaning is clear that from East to West all the countries have lost their senses.
On the other hand, there is complete enthusiasm in India's economy. The GDP figures of the first quarter are testimony to this. India's service and manufacturing sector is making an important contribution to the country's economy. Even though inflation had reached a 15-month high in the month of July, a decline may be seen in the month of August. The reason for this is the decline in the prices of vegetables. Let us try to understand the economic factors from America to China and Europe.
Inflation pressure in America too
The core personal consumption expenditure price index rose 0.2 per cent for the second month in a row in July. Inflation figures have been found to be a bit soft. The main reason for which is the continuous increase in interest rates in the last more than one year. Even after that, the inflation figures have not come to that level, which is the target of the Fed. The US central bank wants to bring the inflation rate down to 2 percent. On the other hand, fresh job data shows that hiring has been quite strong. Income growth has slowed down a lot. The workforce has returned to the office. After the decline in payroll in the last two months, 1,87,000 jobs were added by the employers in August.
The condition of Europe and Britain is also bad
On the other hand, the condition of Europe and Britain is quite bad. Talking about European countries, inflation figures have started increasing again. Consumer prices have increased by 5.3 percent compared to a year ago, which is two and a half times more than the target of policy makers. On the other hand, the situation is not good in Britain as well. There is a continuous increase in inflation and a continuous increase in Bank of England interest rates. On the other hand, the condition of Germany, which is among the worst countries in Europe, is also looking very bad. Due to rising energy prices, businesses are cutting investment and focusing on production abroad. More than half of the companies surveyed say that the energy transition is having a negative impact on their competitiveness.
China's economy in recession
The world's largest economy is trying to get out of recession. By the way, there has been a slight improvement in the manufacturing sector in the month of August and new orders have also increased. By the way, PMI figures have not been seen so well. There has been a decline in the property market and a decline in consumer expenditure.
India's economy picks up pace
The kind of enthusiasm that is being seen in India's economy can be clearly gauged from the GDP figures of the first quarter. Even after the increase in interest rates, the service sector is witnessing a boom. The manufacturing sector is also holding a slow pace. The job situation has improved in both the service and manufacturing sectors. There was an increase in GST collection. There is definitely a concern about inflation, but it is also likely to improve in the coming days.
Emerging economies
Mexico's economy grew at a slightly slower pace in the second quarter than previously estimated. The country has benefited from its trade with the US and a strong labor market. On the other hand, Zambia's inflation has reached a 16-month high in August, a week after which the central bank has increased the policy rate for the third time in a row to control price pressure. Which is predicted to continue till the first half of 2025.
No comments:
Post a Comment