The global economy faces an exceptional moment of uncertainty. High and persistent inflation has led central banks to raise interest rates rapidly. Monetary tightening has caused banks to fail in America and house prices to wobble across the rich world. China has reopened its economy, having abandoned its “zero-covid” policy, but has not yet grown as fast as investors predicted. Still, many economies are proving surprisingly resilient to the forces that are buffeting them. The euro zone has technically entered a recession but remains stronger than feared, helped by the partial reversal of the surge in energy prices that followed Russia’s invasion of Ukraine. And labour markets continue to be strong. Read our latest economy news and analysis below to understand what is going on, why, and what may happen next.
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The US economy
Watch Wall Street, not Washington
It is not just borrowers who face a return to reality
Americans’ opinions about the state of the economy have diverged from reality
Two financial giants look likely to crush the competition
Bob Iger is not the only one hanging around for too long
Workers are taking on more American firms—at home and abroad
Zhengzhou’s experience suggests that local problems will be hard to fix
The prime minister is weak and the president frugal
Xi Jinping has the tools to escape Japan’s fate. He should use them
Governments are rushing to limit the damage
Now ten years old, China’s global infrastructure-building plan enters a new stage
An increasingly autocratic government is making bad decisions
Vladimir Putin will be unable to protect citizens from the pain
The Kremlin tries new tactics to keep proceeds afloat
What does the currency’s collapse mean for Vladimir Putin’s ability to wage war?
Restrictions are bringing easy bucks to those who do not observe them
The price-cap scheme has created opportunities for middlemen
The country’s creditors decide they have no choice but to freeze out China
Links between the region’s countries are getting stronger. But America’s loss is not entirely China’s gain
The continent’s future will involve less Western influence
In the next decade regional tensions will build in India
Uday Kotak, one of the past century’s great bankers, retired on September 1st
Stability and development is a tempting formula, but it has been tried before
A series of policy blunders is to blame
The construction industry is being strangled by rising costs and remorseless red tape
The figures used to look abysmal. Now they’re only poor
Will policymakers still lift interest rates?
Politicised governance and a diminished private sector undermine competitiveness
Brexiteers’ plan to choke off immigration from Europe, to boost productivity, has not worked