India has been the star performer among major EMs over the past several quarters and the latest data suggest that the strength of economic activity has continued through to the general election. Headline inflation is grinding back to the RBI’s 4% target …
20th May 2024
The political turmoil in Vietnam, which has led to a number of key leaders being sacked from their posts, is undermining the country’s reputation for stability, which until now has been one of its key selling points to foreign investors. The political …
Future global macro markets leadership …
14th May 2024
A strong start to the year The 1.9% q/q rise in Chile’s GDP in Q1 confirms that the economy is gathering momentum following a weak 2023 and has prompted us to revise up our (once above consensus) 2024 GDP growth forecast to 2.8% (from 2.3%). It also …
The death of Iran’s President Ebrahim Raisi yesterday creates greater uncertainty over the succession planning for the next Supreme Leader. But, taking a step back, the balance of political power within Iran means that there is unlikely to be a major …
If there was any lingering doubt as to whether the ECB could cut rates ahead of the Fed, they have surely been extinguished by a series of recent remarks by central bankers. Speaking at an event in Amsterdam last week Klaas Knot, the head of the Dutch …
Aggregate EM GDP growth will enter a slower phase over the coming quarters. But the headline figure masks large variation in prospects at the country level, with many EMs experiencing a reversal of last year’s fortunes. While we expect the EM monetary …
Having soared to a record high level under the Biden administration, we expect US shale oil output to peak this year before contracting in 2025, driven by a combination of further industry consolidation, productivity improvements running out of steam, and …
Whilst export values of the “New Three” fell for the sixth consecutive month in y/y terms in April, export volumes remained close to their record peak. Meanwhile, the sharp drop-off in China’s exports of solar panels to India following the re-tightening …
The next German federal election will be crucial in determining how Germany will respond to its structural economic challenges. This Update answers some key questions on what to expect from the election and its implications for economic policy and …
While the economy has only narrowly avoided a recession, activity should rebound over coming quarters as real household incomes recover. Indeed, with inflation set to remain above the Bank’s 2% target this year and wage growth accelerating, we expect the …
Thailand’s economy rebounded in Q1 and we expect steady, if unspectacular, growth this year driven by a further rebound in tourism and strong government spending. The 1.1% q/q rise in Q1 GDP, following the 0.4% decline in Q4, was well above consensus …
In the latest episode of The Weekly Briefing from Capital Economics, Group Chief Economist Neil Shearing addresses the White House announcement of higher tariffs on Chinese goods and what that signals about the direction of the global economic system. He …
17th May 2024
Economy running hot in Q1, inflation pressures build further The 5.4% y/y rise in Russian GDP in Q1 was a touch stronger than expected and, taken together with the rise in inflation in April, adds further evidence to the view that the war effort is …
The US dollar has eased back in the wake of somewhat better news on US inflation this week, which has seen US interest rate expectations fall back a bit further. Between this week’s inflation news, the recent softening of activity figures (including this …
The further evidence of softer activity this week might not be enough to persuade the Bank of Canada to cut interest rates in June, but they add to our sense that rate cuts are coming very soon. Momentum fading going into Q2 The recent data suggest that …
At our recent roundtable we shared our view that strong rental prospects mean residential property is likely to outperform other commercial property sectors over the next five years. The slides from the event are available on our website . Across the …
Abinader again The Dominican Republic’s general election on Sunday is likely to buck Latin America’s anti-incumbency wave. Opinion polls point to current president Luis Abinader comfortably winning re-election. Indeed, some of the latest surveys put him …
New measures to support China’s property sector have brought more cheer to Chinese equities. But, while we continue to think they will fare well in the coming months, we ultimately expect them to lose ground to stocks elsewhere over the next year or so. …
The second consecutive monthly reduction in the International Energy Agency’s (IEA) 2024 oil demand growth forecast this week further widened the wedge between the IEA’s and OPEC’s near-term outlooks. Against the backdrop of the recent falls in oil prices …
SA: NHI bill signals looser policy post-election South Africa’s President Ramaphosa approval of the controversial National Health Insurance (NHI) bill this week was a clear effort to bolster the ANC’s support ahead of the election. But it also signals …
The recent sharp drop in industrial REIT prices appears to have been tied to Prologis’ Q1 earnings call, which referred to especially weak leasing in Q1 and a cut to expected year-end net operating income. We aren’t too alarmed by either – slow Q1 …
New tariffs much ado about nothing The Biden administration’s announcement this week of an increase in tariffs on hi-tech & green-related goods imports from China will have little impact. The biggest change ostensibly was the announcement that the tariff …
Putin’s political shake-up and meeting with Xi There were two big developments in Russia this week. The first was the cabinet reshuffle, in which long-serving defence minister Sergei Shoigu was replaced by economist Andrei Belousov. A lot of ink has been …
We’ll be discussing the outlook for UK inflation and interest rates in a 20-minute online briefing at 9.30am BST on Wednesday 22nd May shortly after the release of April's CPI data. (Register here .) Next Wednesday’s release of April’s CPI inflation data …
The US decision to hike tariffs on Chinese EVs from 25% to 100% and to also raise tariffs on EV batteries, semiconductors and solar panels, raises the question how Europe will respond. Europe is in a different position from the US because imports of these …
Property support ramps up The PBOC today announced major changes to property controls, including removal of regulatory floors for mortgage rates and a lowering of the minimum downpayment to 15% for first homes and 25% for second homes, 5%-pts lower than …
Weak growth a concern for the central bank Bank Indonesia is the only central bank in the region with a mandate to ensure currency stability. While we had not been expecting the central bank to raise interest rates at its April meeting , the move didn’t …
There will be some upward pressure on services inflation in the coming months from tourism-related items and the pass-through of higher oil prices. But we think that this will be more than offset by the impact of lower gas prices and slower wage growth, …
Improving sentiment towards Chinese equities has sparked a further rebound over the past month, with stocks there having generally outperformed those elsewhere over this period. While we continue to see near-term upside, we think they will ultimately …
Non-aligned policy to be tested in US-China divide This week we took a deep-dive into a topic that regularly comes up in our conversations with clients: how India positions itself in a fragmenting global economy. (See here .) Our analysis makes the point …
BoJ starting to scale back bond purchases The 0.5% q/q fall in Q1 GDP was the second fall over the last three quarters. With GDP unchanged in Q4, Japan barely escaped a recession. What’s more, with real consumption falling for four consecutive quarters, …
The second estimate of Q1 GDP confirmed that the economy rebounded last quarter but we continue to expect below-trend GDP growth this year as a whole. The softening labour market, tighter fiscal policy and soft foreign demand are all likely to weigh on …
This page has been updated with additional analysis since first publication . Recovery hits a speed bump Industrial production continued to accelerate thanks to strong exports, but growth on most other indicators slowed, pointing to softer domestic …
Budget leaves much to be desired The headlines this week were dominated entirely by the contentious 2024/25 Federal Budget , which some commentators have described as “smoke and mirrors”. We certainly sympathise with those who take umbrage at Treasurer …
Detailed state, regional and provincial level data for the US, China, Canada, and the UK. If you have subscriber access to the data underlying this dashboard, you can download it via the menu options in the top right of each chart or table. If …
Curated, interactive, and customisable data and charts designed to make your climate reporting easier and faster. If you have subscriber access to the data underlying this dashboard, you can download it via the menu options in the top right …
Explore alternative scenarios of the long-term drivers of emissions to visualise risks to your strategies and asset holdings. If you have subscriber access to the data underlying this dashboard, you can download it via the menu options in the …
This dashboard is our new go-to resource for keeping track of key developments in the EU ETS market and carbon price. If you have subscriber access to the data underlying this dashboard, you can download it via the menu options in the top right of each …
Although the “big-tech” sectors have been out of favour compared to others so far this quarter, we expect them to regain the lead before long and help the US stock market outperform those elsewhere. The S&P 500 reached a new all-time high yesterday, and …
16th May 2024
An interactive guide to r* in the post-pandemic economy, including our forecasts for the major advanced economies out to 2030. This dashboard was last updated on 17th October 2023. If you have subscriber access to the data underlying this dashboard, you …
An interactive guide to how artificial intelligence will transform the global economy, including our AI Economic Impact Index. If you have subscriber access to the data underlying this dashboard, you can download it via the menu options in the top right …
For much of the past year, the dollar has strengthened against emerging market (EM) currencies even as EM sovereign dollar bond spreads have narrowed. One way or another, that is unlikely to last. One relatively unusual feature of the strengthening of the …
Saudi’s gigaprojects stick or twist moment Comments from Saudi Arabia’s Finance Minister Mohammed Al-Jadaan this week have added to the growing discourse of whether the Kingdom can afford, both literally and figuratively, to continue with its vast suite …
Financial conditions have loosened somewhat in advanced economies this year, suggesting that the peak drag from monetary tightening is behind us. However, outside Japan, they remain tight by past standards and are likely to contribute to below-trend …
India is benefitting economically from maintaining its historical non-aligned stance in response to tensions between the West and Russia, and Iran to a lesser extent. But notwithstanding a potential universal tariff on all US imports under a second Trump …
We discussed the outlook for UK inflation and interest rates in an online briefing just after the release of April's CPI data. Watch that briefing here . Our forecast that CPI inflation will fall from 3.2% in March to below 2.0% in April and below 1.0% …
