Japan Data Response Economy Watchers Survey (Dec.) The small improvement in the Economy Watchers Survey (EWS) in December suggests household spending was slow to recover from October’s sales tax hike. Both household-related activity and employment... 14th January 2020 · 2 mins read
Bank of Japan Watch Chances of policy easing diminishing The Bank of Japan will almost certainly leave policy settings unchanged when its forthcoming meeting concludes on 21st January as recent data have mostly been reassuring. And while we expect the... 14th January 2020 · 7 mins read
Emerging Markets Economics Update Lower for longer: EM interest rates after the golden era This decade is likely to be marked by slower growth and softer inflation in emerging markets. One consequence is that interest rates will probably be lower than most currently anticipate. 13th January 2020 · 3 mins read
UK Data Response Monthly GDP & International Trade (Nov.) The sharp decline in GDP in December is partly due to some activity being brought forward before the 31st October Brexit deadline. Nonetheless it leaves the economy on course to stagnate or contract... 13th January 2020 · 3 mins read
Asia Economics Focus Taiwan: what to expect from Tsai’s second term and beyond The two key economic challenges facing Tsai Ing-wen in her second and final term as Taiwan’s president are the deteriorating demographic outlook and the long-term decline in productivity growth. A... 13th January 2020 · 14 mins read
India Data Response Industrial Production (Nov.) The sharper-than-expected turnaround in industrial production growth in November is a breath of fresh air for India’s economy and supports our view that the economic slowdown has probably bottomed out... 10th January 2020 · 2 mins read
Latin America Data Response Brazil IPCA (Dec.) & Mexico Ind. Production (Nov.) Strong Brazilian inflation – which jumped to 4.3% y/y last month – and signs that the economy is on a firmer footing, suggest that the further interest rate cuts some still expect in early 2020 won’t... 10th January 2020 · 2 mins read
Long Run Economic Outlook EM catch-up to slow as globalisation stalls 10th January 2020 · 1 hr, 9 mins read
Japan Economics Weekly Diminishing capacity shortages won’t prompt rate cuts Capacity shortages remained pronounced on the eve on the sales tax hike. And even though we expect the output gap to decline a bit over the coming months, that probably won’t trigger additional easing... 10th January 2020 · 5 mins read
Australia & New Zealand Economics Weekly Some good news for Q4 but 2020 still looks soft Trade and retail sales data for November both provided some reason to be optimistic about GDP growth in Q4. But looking past the positive headlines, we still think the outlook for domestic demand in... 10th January 2020 · 3 mins read
India Economics Weekly Fiscal stimulus increasingly likely A ramping up of anti-government protests and advanced estimates showing GDP growth dropped to its weakest rate since the global financial crisis in FY19/20 increases the pressure on the finance... 10th January 2020 · 5 mins read
Australia & New Zealand Data Response Australia - Retail Sales (Nov.) The strongest rise in retail sales in two years could be a sign that tax refunds and interest rate cuts are finally boosting spending. But with consumer confidence falling to fresh lows, we doubt it... 10th January 2020 · 2 mins read
US Economics Update Recession Watch (Jan.) The chances of a recession in 2020 are still barely higher than the normal background risk. Our composite 12 month ahead probit model – based on the yield curve, financial conditions and various... 9th January 2020 · 4 mins read
Europe Economics Update France a European bright spot despite slower growth The French economy is likely to continue to perform reasonably well this year as solid consumer spending growth partly offsets fiscal tightening and a slowdown in investment. Moreover, the pensions... 9th January 2020 · 3 mins read
Latin America Data Response Mexico CPI (Dec.) & Brazil Ind. Production (Nov.) Mexican inflation eased again in December, supporting our view that policymakers will continue to cut rates this year. Elsewhere, the larger-than-expected 1.2% m/m fall in Brazilian industrial... 9th January 2020 · 2 mins read
Africa Economics Update South Africa: Another technical recession looks likely South Africa’s manufacturing sector was struggling even before December’s power cuts, so production almost certainly fell in Q4. Given weakness in other sectors, we think that South Africa slipped... 9th January 2020 · 3 mins read
