Economic Switcheroo: from Unbridled Optimism to Deep Pessimism

Jon Blogosphere, Economy, Energy, Market Commentary

‘In the global economy, there are not many bright spots around the world.’
– Jim Yong Kim, President, World Bank
‘It is worse than in 2008… Freight rates are lower… The external conditions are much worse.’
– Nils Andersen, CEO of shipping giant AP Mller-Maersk
I pay scant attention to the International Monetary Fund (IMF) and the World Bank when they gush about how great the global economy is doing… which is almost always. However, I do pay careful attention to them whenever their near-perpetual optimism turns negative.
The IMF lowered its 2016 global growth forecast for both 2016 and 2017 by 0.2% and 0.1%, respectively. Specifically, it is worried about the drop in oil prices, a sharp economic slowdown in China, rumblings about trade wars and tariffs, disease epidemics, refugees crises, and military conflict.

This post was published at Mauldin Economics on MAY 3, 2016.