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Global economy still struggling – Scotiabank

By FXStreet Analysts at Scotiabank explained that the global economy is still struggling to generate stronger growth.

Key Quotes:

“Aggregate demand has yet to revive despite very supportive monetary conditions internationally.”

“World trade volumes lost considerable momentum at the end of last year, with sub-par readings on manufacturing activity and bulk shipping persisting in the opening months of 2016.”

“Much of the continuing underperformance can be attributed to China’s plan to eliminate overcapacity in many of its traditional industrial and manufacturing sectors as it transitions to higher-valued production and service-related output, and the cascading effect on suppliers throughout Asia-Pacific and Latin America.”

” In addition, most commodity-dependent countries and regions are still responding to the collapse in prices, particularly for energy and metals, through sizeable cutbacks in investment and hiring. Structural adjustments are dampening activity globally, and in the emerging market economies in particular. At the same time, the renewed volatility in financial markets, now aggravated by unsettled politics in the U.K. and the U.S., threatens to aggravate the already elevated level of economic uncertainty. “
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Source:: FX Street

      

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