The World Economy: Trouble Ahead
Report from the Economic Front
Economic conditions are not good and the signs are for more trouble. The post-Great Recession recovery has been incredibly weak and it appears that it will soon come to an end. And here I am writing about all the advanced capitalist economies, not just the United States. Perhaps the key indicator: investment and productivity trends.
Here is the International Monetary Fund [IMF] writing in 2015: “Private fixed investment in advanced economies contracted sharply during the global financial crisis, and there has been little recovery since.”
The sharp contraction in private investment during the crisis, and the subsequent weak recovery, have primarily been a phenomenon of the advanced economies. For these economies, private investment has declined by an average of 25 percent since the crisis