Marquis Benedict Reyes 9 - 7 - 23

9 - Clara Lim - Sylianco

Article # 2

The intersection of declining price pressures and rising wage pressures is

significant for economies, leading to a more balanced debate between hawks
and doves in central banks. Labor markets in several countries are showing signs
of loosening, which is expected to result in lower wage growth in the near future.
Global economic growth in the first half of the year exceeded expectations due
to strong consumer demand, but recent vulnerabilities in the services sector,
particularly in Europe, may pose economic challenges.
As a result, financial markets anticipate central banks to soon stop raising
interest rates and adopt accommodative monetary policies, similar to what
some Latin American economies have already done.
In China, economic challenges extend beyond post-pandemic dynamics, with
deep-rooted structural imbalances. A significant portion of China's economy
relies on investments, while household consumption lags behind. This has led to a
long-term weakness in domestic demand, requiring substantial policy and
institutional reforms. Despite efforts to shift focus from investments to
consumption, progress has been slower than expected. Short-term fiscal support
is being used to address immediate demand issues, but more profound reforms
will likely be necessary. Consequently, China's economy is expected to
experience a period of adjustment with further slowing growth, continuing a
decade-long trend of declining growth.

SOURCE: https://www.holoniq.com/ ←-