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A one-stop guide to the key macro/financial indicators

* In an effort to provide a further edge to investors, we introduced a unique presentation on the global economy, covering as many as 39 nations, together accounting for over 85% of global GDP in CY21.

* Our intent to work on this comprehensive and extremely detailed data-oriented presentation is to provide a one-stop shop to all our readers. We hope this presentation will offer a bird’s eye view of how the world economy is evolving.

 * We have attempted to cover the most important macroeconomic indicators to offer our readers an idea of various themes, such as: a) consumption v/s investments, b) linkages between monetary variables and inflation, c) key trends in global debt, d) government finances, e) monetary economics, f) international trade developments, g) the global housing market condition, and h) the labor market situation in developed nations.

*This presentation will be released in the first month of every quarter, covering all published data as of the recently concluded quarter.

Key highlights of 2QCY22

*Global economy has changed dramatically in 2QCY22. As inflation surged higher than expected almost everywhere, several Central Banks (CBs) moved suddenly and sharply to implement monetary tightening in the quarter. Global monetary aggregates (narrow/broad money supply and currency in circulation) have either declined or flattened in recent months.

* Although global headline inflation surpassed 8% level in Jun’21, the core inflation in AEs was stable at 5% for the third successive month. Although most of the major CBs have hiked rates in 2QCY22, some E&DEs such as ID/TH have yet to hike rates, while CN cut rates last in Jan’22.

* Not surprisingly then, financial markets have turned volatile. After stabilizing in 2QCY22, equity markets gained in Jul’22. Further, with the rising US recession fears, 10-yr yield in AEs declined in the recent months, while it remained stable-to-higher in E&DEs.

* With crude oil prices being higher than USD100/bbl, not only headline inflation has risen, but external sector vulnerabilities have also risen in many E&DEs. Going forward, this would remain a key monitorable.

* Finally, while the housing market has started losing some steam in 2QCY22, the labor market (in selected AEs) continues to remain very strong.

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