Spanish Minister of Economic Affairs talking with the German Chief of Staff and acting finance minister. Photo: Thierry Monasse/Getty Images
The world may finally be getting out of a global downturn, according to NYT's Peter Goodman. "For the first time since the financial crisis a decade ago, all of the world’s major economies are growing," he writes.
Why it matters: "The world is now enjoying a positive feedback loop, with growing business confidence leading to more hiring, delivering gains in consumer spending. More money in consumer pockets gives businesses more reason to expand," Goodman notes.
Factors that have led to this growth:
- United States: "[G]overnment spending unleashed during the previous administration, plus a recent $1.5 trillion shot of tax cuts."
- Europe: Benefitting from "the effects of cheap money pumped out by its central bank."
- "China has diminished fears of an abrupt halt to its decades-long growth trajectory."
- Russia and the Middle East: rising oil prices
- Mexico has "transcended fears that menacing trade rhetoric from the Trump administration would dent its economy"
- Poland and Brazil have seen an increase in the number of online job listings
What they're saying: As Barret Kupelian, senior economist in the London office of PwC, told NYT: “If something bad happens in one economy, the fact that global growth is spread gives you more assurance that this is more sustainable.”
But, but, but: "Many economists are skeptical that the benefits of growth will reach beyond the educated, affluent, politically connected class that has captured most of the spoils in many countries and left behind working people whose wages have stagnated even as jobless rates have plunged."