Strategic Intelligence: Global Economic Outlook Executive Briefing (13th Edition)
Description
Strategic Intelligence: Global Economic Outlook Executive Briefing (13th Edition)
Summary
The global outlook is being reshaped by a persistent energy shock, at best delaying the expected 2026 demand recovery and at worst pushing the global economy into recession. Risks in this shock are tilted toward weaker volume growth rather than a wage-price spiral, though the US faces a greater risk of persistence of inflation, even though the economy is among the least exposed to high energy prices.
Key Highlights
Summary
The global outlook is being reshaped by a persistent energy shock, at best delaying the expected 2026 demand recovery and at worst pushing the global economy into recession. Risks in this shock are tilted toward weaker volume growth rather than a wage-price spiral, though the US faces a greater risk of persistence of inflation, even though the economy is among the least exposed to high energy prices.
Key Highlights
- Higher energy and commodity costs will compress real incomes and corporate margins, while weakening labor markets limit wage pass-through, despite structural labor shortages and push adjustment toward employment rather than prices.
- At the same time, constrained central bank policy and generally rising term premia are tightening financial conditions, reducing the effectiveness of bonds as hedges and exposing growing stress in private credit, making capital preservation more complex and reliant on diversification. In FX, currencies are currently driven by energy dynamics, but the dollar’s safe-haven status is eroding structurally, while the euro and yen will appreciate if energy prices ease.
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Table of Contents
98 Pages
- Executive Summary
- Global Economic Outlook
- Sector Analysis
- Appendices
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