This piece by Allister Heath “Global growth has peaked for now – but no need to panic” reads like a movie being watched in fast forward, quite incomprehensible!
IT’S NOT time to panic about the global economy just yet. Yes, equity markets are in freefall left, right and centre but the situation is far from universally disastrous. Growth is slowing after a strong run but isn’t about to end. There’s little chance of broad-based global deflation.
The US economy’s expansion will be slower than expected in the first half of the year. In the UK, by contrast, the slowdown in real money expansion has been limited and GDP growth could run at about three per cent during the first half. The recovery is maturing and parts of the global economy are finally readjusting to a slightly less abnormal monetary policy. It is a major challenge – but one we should welcome, not fear.
I love it when he says “(global) growth is slowing after a strong(!) run”. Maybe that´s the impression you get when ‘writing scenes in fast forward mode’!