Filtered by Subscriptions: The Long Run Use setting The Long Run
You can use the "Table of Contents" feature, found on the top right of the webpage, to navigate this publication quickly. Summary: The rally in equities over the past year or so, driven in no small part by hype around AI, has left stock markets looking …
24th April 2024
The slump in the yen has resulted in Germany overtaking Japan as the world’s 3 rd largest economy at market exchange rates. We expect Japan to overtake Germany yet again in the early 2030s as the yen strengthens and Japan benefits from higher productivity …
9th April 2024
One of the key problems for countries with ageing populations is how to tackle the associated fiscal costs. Those countries which have a good record for structural reform and/or scope to raise taxes should be able to mitigate or absorb those costs. But …
26th March 2024
Sub-Saharan Africa’s enormous demographic tailwind means the region will see the fastest GDP growth rates (4-5%) of any region between now and 2050. By the middle of the century, the region’s overall GDP will probably be larger than any single economy bar …
21st March 2024
There are so many uncertainties that it remains unwise to get carried away by the potential economic boost from the latest wave of weight loss drugs. Nonetheless, if use of the drugs continues to grow rapidly, it could ultimately give a significant boost …
14th March 2024
EMs will account for over half of global GDP within the next decade and almost 60% by 2050. Headlining this, India will become the world’s third-largest economy as soon as 2026. More generally, EMs with rapid population growth, the potential to develop …
11th March 2024
The green transition will deal a significant blow to EM oil producers that have failed to save their windfalls (Nigeria, Colombia, Angola), but boost the export revenues of economies such as Chile and South Africa that are endowed with the raw materials …
4th March 2024
The AI revolution should deliver substantial productivity gains in the coming decade, particularly in advanced economies. But with working age populations falling in key areas and China’s economy in structural decline, we expect global growth to slow …
20th February 2024
Although the recent transition to a higher interest rate climate has not caused any lasting or systemic financial flare ups, it is probably too soon to sound the all-clear. And while a higher interest rate climate in the medium-term will reduce …
8th February 2024
The high profile announcements from COP28 around renewable capacity pledges and fossil fuel usage are ambitious, but strike us as either overly optimistic or vague. While we think renewable energy consumption will increase markedly, fossil fuel usage is …
21st December 2023
Most major DMs need to shrink their primary budget deficits significantly and, for various reasons, most are likely to find it hard to do so. This will exacerbate growing worries about fiscal sustainability. Fiscal deficits increased significantly in …
20th December 2023
In this Global Economics Update , we describe eight of the biggest risks to our economic forecasts for 2024. The unusual nature of this cycle and uncertainties surrounding the transmission of monetary policy mean that the biggest risks relate to central …
30th November 2023
During the past decade, the global economy has transitioned out of an era in which globalisation was the key driver of economic and financial relationships into one shaped by geopolitics. Previously, most governments had believed that closer economic …
16th November 2023
This dashboard shows our latest forecasts for stock market indices, government bond yields and exchange rates for emerging economies. If you can't see the full interactive experience, including all of the charts and tables, and would like to enquire about …
This dashboard shows our latest forecasts for policy rates across emerging market economies. If you can't see the full interactive experience, including all of the charts and tables, and would like to enquire about upgrading, contact …
This dashboard presents our inflation forecasts for emerging economies. If you can't see the full interactive experience, including all of the charts and tables, and would like to enquire about upgrading, contact sales@capitaleconomics.com … EM …
This dashboard presents our GDP growth forecasts for emerging economies. If you can't see the full interactive experience, including all of the charts and tables, and would like to enquire about upgrading, contact sales@capitaleconomics.com … EM GDP …
Our Long Run Returns Monitor provides our updated long-term projected returns for major asset classes. All projections in this publication are as of 1st November 2023. Our latest projections have been influenced by the recent body of work that we’ve done …
2nd November 2023
The full report is available to download from the button at the top right to Global Economics, Global Markets, Asset Allocation and The Long Run subscribers, as well as to CE Advance clients. If this is outside of your current subscription and you would …
17th October 2023
Chapter 4: Financial market implications …
Chapter 3: Where will inflation (and nominal rates) settle? …
Chapter 2: How will the savings/investment balance affect r*? …
Chapter 1: Will stronger potential growth boost r*? …
Introduction and framework …
r* and the end of the ultra-low rates era: executive summary …
The sell-off in bond markets has taken a breather today, helped in part by softer data on the US labour market. However, the scale of the moves over the past week has invoked comparisons to previous financial crises that have been caused by sharp moves in …
4th October 2023
Saudi Arabia’s labour market has strengthened markedly in its post-pandemic recovery and the headline figures mask a dramatic shift in the size and composition of the labour force. In particular, social reforms have helped the female participation rate to …
Investment in the green transition is unlikely to rise quickly enough this decade to help achieve net zero by 2050. But a greater focus on areas including renewables and electric vehicles will still probably push up investment’s share of global GDP by …
25th September 2023
The G20 summit which concluded yesterday in New Delhi supported our view that the global economy is fracturing into US and China-led blocs, and that India still leans to the former. While the statement was light on explicit policies, calls to increase …
11th September 2023
China’s push to develop the BRICS bloc into a geo-political counterweight to the G7 is likely to be thwarted by the competing interests and priorities of other member states. Nonetheless, positioning ahead of this week’s BRICS summit will provide some …
21st August 2023
Global energy consumption has increased in most countries over the past century (1) and has long been dominated by fossil fuels (2) . Energy consumption typically rises in tandem with income. We forecast that global incomes will rise in real terms over …
The message from electric vehicle sales data is now clear: the EV revolution is alive and kicking and poses important implications for oil demand. We are slightly more optimistic on the pace of EV adoption than other forecasters and suspect the drag on …
31st July 2023
The rollout of electric vehicles is the greatest structural shift facing the oil market. The message from the stark increase in EV sales over the last few years is clear: the EV revolution is alive and kicking. In the US, there has been a clear …
Egyptian policymakers’ commitment (or lack of) to economic orthodoxy continues to provide cause for concern and, while we don’t share the view that sovereign default is a serious risk, the near-term economic outlook is challenging. Over a longer …
20th July 2023
Our Long Run Returns Monitor provides our updated long-term projected returns for major asset classes. All projections in this publication are as of 7th July 2023. We publish more detailed explanation of our views in our annual Long Run Asset Allocation …
11th July 2023
EMs will account for over half of global GDP within the next decade and almost 60% by 2050. India will become the world’s third-largest economy before 2030. More generally, EMs with rapid population growth, with potential to develop into manufacturing …
26th June 2023
A series of high-level diplomatic meetings this week have raised hopes that strains in US-China relations will start to ease. But the politics of fragmentation was never likely to proceed in a linear direction. And even if there is a thaw in political …
20th June 2023
Note: We’re talking inflation and the BOJ, slowing Indian growth, and regional monetary easing in our Asia Drop-In on Thursday, 22 nd June. Register now . The female participation rate has surged over the past decade but more favourable attitudes among …
19th June 2023
How low Fed and ECB policy rates will go, when they are eventually normalised, is at least as important for financial markets as the precise timings of the ends of tightening cycles, in our view. We think both central banks will cut deeper than investors …
16th June 2023
In theory, there is plenty of scope for those countries set to age most rapidly over the coming few decades to cushion the impact on their workforces via migration and a rise in both female and older participation rates. However, in many cases, this will …
4th May 2023
The global energy market is in the early days of a radical redesign due to the need to cut greenhouse gas emissions. In this Focus , we introduce our long-term energy market forecasts, which are characterised by continued growth in energy consumption and …
27th April 2023
The physical risks facing commercial property are substantial with extreme weather events like floods and wildfires set to increase in both the US and Europe over the coming decades. Property markets have yet to fully price these in, especially in areas …
21st April 2023
The economic impact of the Oxford malaria vaccine, which has now been approved by regulators in Ghana and Nigeria, will depend on the pace and breadth of the rollout and how long immunity lasts for. But it could potentially have a large positive impact on …
20th April 2023
As countries age, falling working-age populations will make it harder to sustain growth in the size of the labour force. Lessons from countries that are already advanced in the ageing process suggest that the drag can be offset by raising female labour …
28th March 2023
While the Credit Suisse rescue might draw a line under that particular institution’s problems, it is clear that confidence in the financial sector overall is still extremely fragile. So regardless of whether more financial institutions run into trouble, …
20th March 2023
The numerous “plans for growth” that have been announced by the Government, the Opposition, and various commentators in recent months vary in their analytical rigour but all miss one crucial point: many of the reforms required to lift the UK’s pitifully …
9th March 2023
The current economic downturn will mean that short-to-medium term property performance is under-par. But over a longer horizon, we expect real estate returns to reassert their traditional position somewhere between bonds and equities. Last year was an …
2nd March 2023
While it is in America’s strategic interests to build stronger economic ties with allies to counter China’s growth, its protectionist tendencies could undermine those goals and blunt the effectiveness of its interventionist foreign policy. Our work on …
22nd February 2023
The big sell-off in both equities and bonds that was a feature of 2022 has arguably created scope for them to fare a bit better in the coming years by reducing their valuations. Nonetheless, we don’t think they will provide spectacular returns over the …
21st February 2023
This dashboard provides an overview of our key long-term macroeconomic forecasts for the world's largest economies including GDP growth, inflation and policy rates. If you can't see the full interactive experience, including all of the charts and tables, …
