The Globe and Mail reports in its Saturday, Jan. 19, edition that global economic growth is slowing under the weight of feuding politicians, growing trade tensions and rising interest rates. The Globe's Ian McGugan writes that last week, China injected $84-billion (U.S.) into its banking system in an attempt to boost lending in its decelerating economy. Germany revealed its output barely grew in the fourth quarter of last year, Britain stumbled through yet more Brexit-related chaos and the United States government remained largely shuttered as President Donald Trump continued to butt heads with Congress.
A gauge of leading indicators maintained by the Organization for Economic Cooperation and Development has slid to its lowest level since 2012, suggesting even more weakness is likely over the next few months. Meanwhile, 60 per cent of money managers surveyed by Bank of America Merrill Lynch expect growth across the world to weaken this year, the most pessimistic such reading since 2008. Jennifer McKeown of Capital Economics foresees a broad slowdown in North America, the euro zone and China, with growth in advanced economies tumbling from 2.2 per cent last year to a mere 1 per cent next year.
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