Global Expansion ‘About as Synchronized as It Gets’By
The global economy might not be winning any 100-meter dashes -- but there’s at least one Summer Olympics event where it’d be sure to take the top spot.
"The economic expansion is about as synchronized as it gets," writes Barclays Capital Chief U.S. Economist Michael Gapen, noting that only two industrial economies experienced negative growth in the first three months of 2017, and none are currently in recession.
"The activity data paint a picture of growth in the industrialized world that has only been achieved twice in the past two decades: during the tech boom of the late 1990s and the mid-2000s," he writes. "The number of industrialized economies that have experienced negative growth in any given quarter has steadily declined since 2012."
Ten-year bond yields, however, have remained relatively static despite the synchronized upturn in growth, staying in a roughly 80 to 100 basis points range. That’s because inflation across the advanced world is failing to make any major waves, according to Gapen, something he doesn’t expect will change any time soon.