Weak economic growth persists across Advanced Economies six years on from the financial crisis
Weak economic growth persists across Advanced Economies six years on from the financial crisis. As time passes it is becoming clearer this is the new normal for the developed world as the balance sheet recession continues - little real progress has been made on the deleveraging front outside of the US where debt levels have stabilised. While policy makers have gone to extraordinary lengths to stimulate demand, the problem is a less well known supply side phenomenon. Falling workforce participation, an aging capital stock and weak productivity has left the OECD with structurally lower growth. High indebtedness along with anaemic growth in productive capacity points to a protracted period of weaker growth ahead - this is most evident in Europe and Japan. The September quarterly from ALF discusses the implications for shares in a low growth environment facing the prospect of rising interest rates. (VIEW LINK)
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