Economy
Our coverage of global economics, from inflation-fighting central banks to apprehensive financial markets
The global economy faces an exceptional moment of uncertainty. High and persistent inflation has led central banks to raise interest rates rapidly. Monetary tightening has caused banks to fail in America and house prices to wobble across the rich world. China has reopened its economy, having abandoned its “zero-covid” policy, but has not yet grown as fast as investors predicted. Still, many economies are proving surprisingly resilient to the forces that are buffeting them. The euro zone has technically entered a recession but remains stronger than feared, helped by the partial reversal of the surge in energy prices that followed Russia’s invasion of Ukraine. And labour markets continue to be strong. Read our latest economy news and analysis below to understand what is going on, why, and what may happen next.
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The US economy
Why American manufacturing is becoming less efficient
The unfortunate reversal of a long-standing trend
America’s bad auto loans could have nasty consequences
The country’s credit unions are particularly exposed
America’s economy is booming. Why aren’t its bosses happier?
Companies’ earnings calls have hardly been celebratory
Why America’s banks need more capital
Though imperfect, regulators’ plans are necessary to keep the system safe
To understand America’s job market, look beyond unemployed workers
Why talk of a skills shortage is overblown
Forget the shutdown. America’s real fiscal worry is rising bond yields
Watch Wall Street, not Washington
China’s economy
China’s economy is a mess. Why aren’t firms going under?
The government’s desire to avoid bankruptcies is another drag on growth
Xi Jinping steps up his attempt to rescue China’s economy
The president unleashes stimulus, appoints a finance minister and visits the central bank
China’s banks may be loaded up with hidden bad loans
The industry’s covid-era hangover could be about to intensify
China’s economy may be growing faster, but big problems remain
None is more unnerving than the threat of deflation
How China’s Belt and Road Initiative is changing
The many motivations behind Xi Jinping’s key foreign policy
How economists have underestimated Chinese consumption
The surprising relevance of state-subsidised spicy cucumber
Russia’s economy
The costs of Russia’s war are about to hit home
Vladimir Putin will be unable to protect citizens from the pain
A higher global oil price will help Russia pay for its war
The Kremlin tries new tactics to keep proceeds afloat
Russia will struggle to cope with a sinking rouble
What does the currency’s collapse mean for Vladimir Putin’s ability to wage war?
How Russia dodges diesel sanctions
Restrictions are bringing easy bucks to those who do not observe them
Buyers of Russian crude are exporting refined oil to the West
The price-cap scheme has created opportunities for middlemen
Asia’s economies
How Japan poses a threat to the global financial system
Huge, reliable buyers of overseas bonds may be about to close their wallets
Sri Lanka shows how broken debt negotiations have become
The country’s creditors decide they have no choice but to freeze out China
What Asia’s economic revolution means for the world
Links between the region’s countries are getting stronger. But America’s loss is not entirely China’s gain
How Asia is reinventing its economic model
The continent’s future will involve less Western influence
Modi’s “one India” goal is good for the economy, but not for politics
In the next decade regional tensions will build in India
The end of a remarkable era in Indian finance
Uday Kotak, one of the past century’s great bankers, retired on September 1st
Europe’s economies
What markets are trying to tell Europe—and why it should listen
There’s gold in them thar market signals
Despite Brexit and the government, British manufacturing is doing well
But food and drug firms have fared better than carmakers
Europe should not copy Bidenomics
It needs a deeper, greener single market—not more state handouts
Rising bond yields are exposing fiscal fantasy in Europe
Italy’s budget plans look irresponsible
What should Ireland’s government do with a huge budget surplus?
The country’s economy has long been prone to manic mood swings