The latest news in the economic calendar indicates that as of May 2023, the global economy is steadily recovering from the impact of the COVID-19 pandemic. While in some countries like the US and the UK the economy is coming round faster than expected, in others such as China and India growth is slowing down due to restrictions on international trade.
In addition, investors remain cautious about the risks associated with economic uncertainties. This leads to lower stock prices and higher bond yields. Concerns persist regarding the sustainability of economic growth and the potential for future crises.
The US economy continues to grow, despite some challenges related to the coronavirus pandemic and the economic consequences of the trade war with China. The Consumer Price Index (CPI) has seen a stable increase throughout 2023 albeit against the background of a decline in consumer spending, income, and increase in unemployment.
Also, in March the index of economic expectations rose to 99.5%, its highest since 2015, signifying that the US economy continues to strengthen and that investors expect further growth.
Thus, the latest economic news from the United States indicates that there are still some problems caused by the pandemic and trade disputes with China and other countries, yet still the country's economy goes a positive way.
In China, economic growth has experienced a slowdown, marking the first deceleration in the last few years. This can be attributed to a reduction in investment in infrastructure and a downturn in consumption growth. However, the increase of job opportunities has offset some of these effects, but the number of people living below the poverty line in China has surpassed 70 million, as reported by the United Nations in 2023.
Despite this, China continues to be one of the fastest growing economies in the world. In addition, China is actively developing its infrastructure, including the construction of new roads, bridges, and airports. This helps to increase the volume of international trade and attract foreign investment.
One of the main problems facing China is environmental pollution. The Government is taking measures to reduce emissions of harmful substances into the atmosphere, but it has not yet been possible to achieve the desired results.
China's Consumer Price Index is also declining amid a relative cooling in relationships with Western countries and rising unemployment.
In general, the latest economic news from China indicates that the country continues to develop and attract investment from around the world. However, it is necessary to keep working on improving the environmental situation and ensuring social protection of the population.
Shifting focus to the United Kingdom, the country has faced economic problems between 2022 and 2023. However, there have been some positive trends recently. The UK government plans to reduce taxes on companies that invest in the national economy, aiming to attract more investment and stimulate economic growth.
Another important announcement is the decision of the UK government to reduce spending on social programs such as healthcare and education to address budget deficits, while increasing allocations for defense and infrastructure.
Well, despite some positive news, the UK still faces a number of economic challenges, such as high unemployment and inflation. The Government continues to work on solving these difficulties and finding new sources of funding.
The UK consumer price index at the same time shows stable growth.
In Europe, the situation remains tense. Germany and Italy have witnessed increases in the consumer price index, primarily driven by rising energy and food prices. Both countries also face unemployment growth and declining living standards. France, on the other hand, experiences inflation and unemployment due to reduced demand for its industrial products and frequent strikes in Paris.
Nevertheless, Switzerland stands out as an exception in Europe. The country exhibits economic growth, improved living standards, low unemployment rates, and low inflation.
The latest economic news in Europe proves that the situation in the region remains acute, yet the degree varies depending on the country – some face serious problems, while others are not that hardly hit.
Overall, the latest economic news reveals a gradual global economic recovery, albeit with lingering uncertainties and risks. By the end of May, the economic situation in the world is expected to improve. In particular, experts predict oil price hike, which may enhance the financial conditions of oil and gas companies and states heavily dependent on oil and gas exports.
However, developed countries should expect a certain decline, associated with rising inflation and rising interest rates taking toll on investment and economic growth. Anticipated policy changes by the US Federal Reserve, including potential interest rate hikes to curb inflation, may further contribute to this slowdown.
It's important for investors to stay vigilant, monitor economic trends, and base decisions on data analysis and forecasts.