Japan’s economy shrank at the fastest pace in almost six years in the December quarter as last year’s sales tax hike hit consumer and business spending, highlighting a fragile outlook made worse by growing coronavirus risks.
The UK government fightback against the next recession should include pumping as much as £50 billion into green projects, in a move that would help reboot the economy and tackle the climate emergency, according to a left-leaning think tank.
The eurozone economy has avoided a recession, according to a Reuters poll of economists who were reasonably confident of that outcome, but their growth and inflation outlook remains very modest for the coming years.
GDP figures for the second quarter showed the UK economy going into reverse as some of the stock building that took place in the first quarter unwound and investment continued to fall. Exports also fell back, though this was offset by an even sharper drop in imports.
Singapore slashed its full-year economic growth forecast on Tuesday as global conditions were seen worsening and data confirmed the slowest growth rate in a decade amid mounting fears of recession in the city-state.
German industrial output fell more than expected in June, driven by weaker production of intermediate and capital goods, adding to signs that Europe’s biggest economy contracted in the second quarter as its exporters get caught in trade disputes.
A recession in Germany’s manufacturing sector worsened in July with the performance of goods producers dropping to the lowest level in seven years, a survey showed on Wednesday, suggesting a deteriorating growth outlook for Europe’s largest economy.
Australia may be destined for another two years of sub-par economic growth as debt-laden households keep their wallets shut tight, though analysts are hopeful lower interest rates and tax handouts would help it dodge a recession.