Charts of the Week

As we move beyond the pandemic, economic growth rates have become less synchronized and have not yet recovered to pre-shock trends. While, for example, growth is strong in the USA, Latin America, or India, it is one step lower in some regions and countries such as China, and the Euro Area. Inflation Rates Comparison Global inflation surged during the pandemic recovery, but recent trends reveal varied inflation rates, with some countries managing to stabilize prices more effectively than others. The 0%-2% range of inflation in the past has now shifted to 2%-4%, even in Japan. Monetary Policy Divergence Monetary policies diverge as countries tailor their approaches to unique economic circumstances. For instance, the US is expected to cut rates, while Japan plans to raise rates by October. US Economic Performance The US economy has outperformed other developed markets, growing at or above trend. However, inflation, particularly driven by housing prices, remains a significant concern. European Economic Struggles Europe's economic performance has lagged, with weaker GDP and consumer spending. Climate change, demographics, and Brexit continue to hinder growth. Japan's Economic Prospects Japan is set to raise interest rates in October, driven by efforts to create domestic inflation and a virtuous cycle...