David Kohl (Julius Baer) | US growth appears to be more resilient than feared. Trade-related uncertainty and weaker global industrial activity dampened business investment, but private consumption remained strong and the return of residential investment as a positive growth contributor improves the 2020 growth outlook.
Caixabank Research consider recent trends in human capital and the outlook for the future. The quality of the US workforce has undergone a remarkable transformation: over the past 70 years, the level of training has consistently improved. However, several studies also indicate that over the next few years, the contribution of human capital to growth could be more marginal. One of the main reasons for this is the retirement of the baby boomers.
James Alexander via Historinhas | It’s taken a while but the evidence is now in. Euro Area NGDP growth has overtaken US NGDP growth. Congratulations to the ECB, commiserations to the Fed. Go Europe!
SAO PAULO | By Marcus Nunes via Historinhas | Why? According to the “accountants”: “It’s no secret that spending cuts (and tax hikes) have retarded America’s growth for the past four years. But data from the Bureau of Economic Analysis suggests that the era of austerity may finally have ended.” See the “flagship chart” above.