There seems little doubt that the global economy is now entering a new downturn. Pessimists may worry that it has already begun in Q3. Optimists might hope it will be delayed till Q4, or even Q1. But almost all major indicators are pointing in the same direction. • On the macro-level, the latest American Chemistry […]
Tag Archives | OECD
The IeC Downturn Alert has hopefully done the job for which it was intended. It was launched at the end of April, when the blog became convinced that the global economy was highly likely to enter a new downturn. It also realised from its experience in 2007-8, when it later became known as ‘The Crystal […]
German Chancellor Merkel’s recent comment that “I don’t see anything which signals a recession in Germany” is just one sign of the current complacency about the global economy within the Western political elite. Long-standing readers will remember Profs Eichengreen and O’Rourke 2009-10 work comparing today’s Great Recession with the Depression of the 1930s. Worryingly, the […]
The latest American Chemistry Council (ACC) weekly report has worrying evidence that the global economy may be at a turning point, as stimulus programmes are replaced by austerity. The chart shows the latest leading indicators from the OECD (Organisation for Economic Co-operation and Development). As the ACC warn: “The CLI (green line, Composite Leading Indicator) […]
The blog’s recent visit to Singapore included several discussions about the slow start to the New Year in China. And these concerns were confirmed last week in the downturn reported by the OECD’s leading indicators for China (Organisation for Economic Co-Operation and Development). Separately, as the chart shows, the Baltic Dry Index of ocean freight […]
The OECD’s leading indicators for the global economy suggest that GDP growth is continuing to slow. As the above chart from the American Chemistry Council shows, the OECD’s three key indicators have all slipped from H1 2010′s peaks. The composite indicator (blue) has fallen sharply to +5% from +13%, whilst industrial production (red) is down […]
China’s government tends not to like surprises. Its usual tactic is therefore to talk about policy changes well in advance. And this is what seems to be happening with regard to the real estate bubble. Back in September, premier Wen Jiabao said it would probably take 2 – 3 years to cool the bubble properly. […]
Leading indicators are useful reference tools, but sometimes they can also mislead. The chart above, from the ACC’s excellent weekly report, seems to provide a good example of this problem. The blue line shows the official Leading Indicator for the OECD area plus the 6 major non-OECD countries. It suggests that a strong recovery is […]
Leaders of the G-20 represent 85% of the global economy, and 65% of world population. Set up by Finance Ministers after the Asian crisis in 1997/8, they first met at Heads of Government level in the USA last November. Sadly, although their communiqué was filled with earnest promises, few of these have since been enacted. […]
Prof David Blanchflower, of the Bank of England, is not optimistic that the current recession will end soon. He notes that “few macro-economists actually spotted the greatest financial crisis in a hundred years”. And in the chart above, showing OECD forecasts for the UK economy during the last recession, he demonstrates that forecasters kept predicting […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.