The Japan News on Nostr: Global Economy: Discerning Turn of Inflation’s Tide Will Be Important / Keep Eye on ...
Global Economy: Discerning Turn of Inflation’s Tide Will Be Important / Keep Eye on China’s Real Estate Slump
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Inflation is subsiding around the world as major countries and regions that have been raising interest rates rapidly will enter a phase of cutting rates. The policy management of governments and central banks will be tested. The United States and Europe have seen a decline in the rate of price increases. However, monetary tightening measures tend to cool the economy, and the real economic growth rate for the world as a whole is expected to slow down in 2024. Central banks in Western nations are likely to cut interest rates. The U.S. Federal Reserve Board is expected to cut rates within this year, but there is a risk of inflation flaring up if rates are cut too hastily. The Chinese economy, particularly the real estate sector, is a risk factor in 2024. Falling housing prices and financial crises in major real estate companies could have a significant impact on the economy. China's CPI fell 0.5% in November 2023, and fears of deflation are growing. The global economy will also be affected by the intensifying confrontation between the U.S. and China, as well as situations in Ukraine and the Middle East. Strengthening economic security and diversifying supply chains are important for advanced nations like Japan. However, excessive protectionism is harmful to the global economy, and the importance of free trade should not be overlooked.
#Inflation #InterestRates #EconomicGrowth #CentralBanks #UsFederalReserve #China'sEconomy #RealEstateSector #GlobalEconomy #Trade #Protectionism
https://japannews.yomiuri.co.jp/editorial/yomiuri-editorial/20240111-161352/
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Inflation is subsiding around the world as major countries and regions that have been raising interest rates rapidly will enter a phase of cutting rates. The policy management of governments and central banks will be tested. The United States and Europe have seen a decline in the rate of price increases. However, monetary tightening measures tend to cool the economy, and the real economic growth rate for the world as a whole is expected to slow down in 2024. Central banks in Western nations are likely to cut interest rates. The U.S. Federal Reserve Board is expected to cut rates within this year, but there is a risk of inflation flaring up if rates are cut too hastily. The Chinese economy, particularly the real estate sector, is a risk factor in 2024. Falling housing prices and financial crises in major real estate companies could have a significant impact on the economy. China's CPI fell 0.5% in November 2023, and fears of deflation are growing. The global economy will also be affected by the intensifying confrontation between the U.S. and China, as well as situations in Ukraine and the Middle East. Strengthening economic security and diversifying supply chains are important for advanced nations like Japan. However, excessive protectionism is harmful to the global economy, and the importance of free trade should not be overlooked.
#Inflation #InterestRates #EconomicGrowth #CentralBanks #UsFederalReserve #China'sEconomy #RealEstateSector #GlobalEconomy #Trade #Protectionism
https://japannews.yomiuri.co.jp/editorial/yomiuri-editorial/20240111-161352/