Talk Money: October 7, 2015
There are reasons to be cheerful – or worried – about the economy this morning.
Prices have risen for the fourth time in a row at the Fonterra's GlobalDairyTrade (GDT) auction. The GDT index prices rose 9.9 percent and Whole Milk Powder prices were up 12.9 percent.
But the International Monetary Fund (IMF) has cut its forecast for global growth to 3.1 percent. That is its weakest forecast since the global financial crisis. That 3.1 percent figure is very near the 3 percent rate below which the IMF used to say the world economy was in recession.
The IMF says the slowdown in China and other developing economies is offsetting a recovery in developed nations like the United States and the United Kingdom.
Lower productivity growth, high public and private debt and ageing populations are all contributing to the weaker growth figures.
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