A perfect storm of unemployed youth, political gridlock in Europe and the United States, and declining energy prices are causing more economists to warn that an economic slowdown could cause upheaval in developed and emerging nations.
Japan’s current leader, Shinzo Abe, has discovered that his country is falling even further into economic troubles lately, instead of rising out of them. At first, it seemed his methods of ‘Abenomics’ could work, with the stock market increasing by three fifths. However, this excitement quickly died down when overshadowed by the underwhelming numbers in consumer spending.
Global growth is going to decelerate while American workers get fewer jobs as employers expect more for less.
The true state of Uganda’s economy has been under some debate for a while now, as government officials struggle to assess its health. Some observers believe that the economy is crumbling slowly, with unemployment rates growing, businesses closing, and a sharp fall in government revenues.
Gold dipped below $1,200/oz. last week before recovering above that level in trading Monday, as inflation hedges lose favor amongst investors fearing low growth and lackluster monetary policies could yield deflation in the world’s most advanced economies.
The new economy minister for France has declared the country to be ‘sick’ in response to the economic crisis plaguing the French people. He has appealed for immediate reforms to urgently tackle the soaring rates of unemployment in an economy that has remained stagnant for over six months.
Although the current stagnation is only six months old, the economy minister suggests that France has been suffering ill health for some years now as a result of mass unemployment. At this point, there seems to be no other option for the country, but to completely reform the economy.
A bearish trend in U.S. equities was disrupted last Friday on better U.S. employment data, but a recent study on income and poverty shows better employment is benefiting men more than women and unmarried households over married ones.
The Bureau of Labor Statistics reported an increase of 248,000 jobs in September, while employment for August was revised up from a gain of 142,000 to a gain of 180,000. The headline unemployment rate fell below 6% for the first time since the financial crisis of 2008, reaching levels last seen in 2004.
Over 5 million people between 15 and 25 years of age are unemployed in the European Union, and youth unemployment trends are worsening in many parts of the eurozone. That joblessness amounts to around $150 billion annually in lost wages and spending as young Europeans remain unable to purchase basic services and goods such as food, housing, and health care.
A quarter of young Europeans cannot find a job, according to a European Commission study on youth unemployment. That number is twice as high in Greece and Spain, where youth unemployment has surpassed 60% in some areas.
In the second quarter of this year, Turkey’s economy has grown a smaller amount than had been expected, sending the value of the Lira to its lowest estimation in over five months. The finance minister has released a warning suggesting that the estimated growth of 4% could be missed this year.
Both manufacturing and construction in the U.S. saw anemic growth in September, counter to expectations for a steadily improving American economy.
The Institute for Supply Management released its September 2014 PMI, which fell 3.4 points to 56.6% from the prior month. This is the second consecutive month of steep declines in the ISM index, indicating that demand for manufactured goods in the U.S. and abroad is weakening.
