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Five big economies are at risk of recession. It won't take much to push them over the edge. While growth has been dragged lower in each country by a specific cocktail of factors, a global manufacturing slump and a sharp drop in business confidence have made matters worse.
Mexico just dodged a recession-usually defined as rwo consecutive quarters of contraction-and its economy is expected to remain weak this year. And data suggest that Brazil slipped into recession in the second quarter. The Bank of Italy sees a slowdown in the Italian economy this year, with expansion of just 0.1%, and a modest recovery thereafter, when growth is seen at 0.8% in 2020 and 1.0% in 2021, it said that it its quarterly economic bulletin. In UK, GDP for the three months ended June contracted 0.2% compared to the previous quarter, as experts had expected growth to be flat. Prime Minister Boris Johnson ahs committed to leaving the bloc on October 31 even without an exit agreement in place to protect trade. That would plunge the economy into recession according to government forecasts.
Germany nears recession with GDP 2nd quarter of 2019 -01.% on the previous quarter. The German carmakers Volkswagen, Daimler and BMW all earn at least a third of their revenue in China, where auto sales have been slipping after years of explosive growth. A major factor in the slide is the barrage of trade threats that have unsettled Chinese consumers, discouraging them from buying big-ticket goods.
In China, factory output in July fell to its slowest pace in 17 years, according to government data, the industrial output figure wa another sign that China’s overall growth rate continues to slow under the weight of the trade war and the country’s debt problems.
However, for most of us, the individual is powerless to change above figurers and situation, what we should do? Good days or bad days, let us focus on every day.