What’s Happening to the Global Economy? The Answer Lies in These Data

Global Economy Overview

The global economy is sending various signals, and not all of them are reassuring.
What’s happening in the major world powers, struggling with slow growth, fluctuating inflation, and geopolitical tensions? Let’s dive into the analysis of the latest macroeconomic and financial data in the USA, Europe, China, and other emerging markets to get a comprehensive view of the global context and the challenges yet to be overcome.

USA, From Recession Fears to Calmness

Recent readings on retail sales and unemployment claims have eased some of the concerns about the US economy.
Retail sales increased in July by the most since the beginning of 2023 in a broad advance.
Firm sales indications from Walmart, a growth barometer, also signaled that buyers are becoming more selective but continue to spend.
The US core inflation eased for the fourth consecutive month on an annual basis in July, keeping the Federal Reserve on track to lower interest rates next month.

Eurozone, Labor Focus

Eurozone companies slowed down hiring in the second quarter amid increasing signs of economic weakness.
The Eurozone economy has recently shown signs of distress, with consumers reluctant to spend despite disproportionate wage increases, private sector activity stalling, and confidence in its largest member, Germany, declining.
Labor productivity only marginally improved in the second quarter, once again falling short of the European Central Bank’s expectations, which could negatively impact the rate-cutting path.

Chinese Distrust

Foreign investors withdrew a record amount of money from China last quarter, likely reflecting deep pessimism about the world’s second-largest economy.
China’s direct investment liabilities in its balance of payments decreased by nearly $15 billion in the April-June period, marking only the second time this figure turned negative.

Argentina Puzzle

In the eight months since President Javier Milei took office, prices have risen by over 100%, consumer spending has plummeted, and unemployment has increased.
However, something unexpected has happened under Milei’s supervision: despite all the ongoing misery, he remains as popular as when he came to power.

Lithium Boom in Africa

Chinese miners and refiners are leading a surge in lithium production in Africa, disregarding concerns about excess supply.
The continent is expected to account for nearly 11% of global supply this year, up from almost zero at the beginning of the decade, according to S&P Global Commodity Insights.
This share is forecasted to rise to over 14% by 2028.