Oct 14, 2019

Report: Key global economic indicators hit lowest level since 2016

Illustration: Aïda Amer/Axios

Headline economic indicators have hit their lowest levels since spring 2016 as the global economy sinks into a "synchronised stagnation" period, research by the Brookings Institution and the Financial Times published Sunday shows.

Why it matters: The Tracking Indexes for the Global Economic Recovery research shows weak growth in some major economies and "essentially no growth or even mild contraction" ahead of International Monetary Fund and World Bank meetings in Washington, D.C., this week — the first with Kristalina Georgieva as the IMF’s new managing director.

  • The findings build on similar gloomy outlooks from the International Monetary Fund and the Institute of International Finance, which on Thursday lowered its growth forecast for 2019.

The big picture: Georgieva warned this month that the global economy "is now in a synchronized slowdown." The IMF now expects slower growth in 90% of the world and that "growth this year will fall to its lowest rate since the beginning of the decade."

  • Per Axios' Dion Rabouin, "The IMF and World Bank ... said they expect to write down their 2019 growth projections again — the third downward revision this year — at their meetings next week."

Yes, but: IIF deputy chief economist Elina Ribakova told Axios the organization remains upbeat on the outlook despite its revision, and it expects central banks to "continue easing against the backdrop of slowing growth and assume no further deterioration in trade tensions."

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Protests for George Floyd continue for 10th day

Thousands of protesters march over the Brooklyn Bridge on June 4 in New York City. Photo: Angela Weiss/AFP via Getty Images

All four former Minneapolis police officers have been charged for George Floyd’s death and are in custody, including Thomas Lane, J. Alexander Kueng and Tou Thao, who were charged with aiding and abetting second-degree murder and aiding and abetting second-degree manslaughter.

The latest: Crowds gathered in Portsmouth, New Hampshire on Thursday evening and in Atlanta, Georgia, despite the rain. Atlanta Mayor Keisha Lance Bottoms joined demonstrators on Thursday. Demonstrators in Washington, D.C. dispersed following a thunderstorm and rain warning for the region.

Trump says he will campaign against Lisa Murkowski after her support for Mattis

Trump with Barr and Meadows outside St. John's Episcopal church in Washington, D.C. on June 1. Photo: Brendan Smialowski/AFP via Getty Images

President Trump tweeted on Thursday that he would endorse "any candidate" with a pulse who runs against Sen. Lisa Murkowski (R-Alaska).

Driving the news: Murkowski said on Thursday that she supported former defense secretary James Mattis' condemnation of Trump over his response to protests in the wake of George Floyd's killing. She described Mattis' statement as "true, honest, necessary and overdue," Politico's Andrew Desiderio reports.

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The president vs. the Pentagon

Trump visits Mattis and the Pentagon in 2018. Photo: Brendan Smialowski/AFP via Getty

Over the course of just a few hours, President Trump was rebuffed by the Secretary of Defense over his call for troops in the streets and accused by James Mattis, his former Pentagon chief, of trampling the Constitution for political gain.

Why it matters: Current and former leaders of the U.S. military are drawing a line over Trump's demand for a militarized response to the protests and unrest that have swept the country over the killing of George Floyd by police.