Semi-out of the Woods (KLAC)
We’re in a state of great fluctuation with no grounding. Just last week the World Bank slashed global economic growth for 2023 to 1.7%, down from 3%. This comes off the back of the US economy growing an estimated 0.5% this year, down from an earlier projection of 2.4%. Considering inflation is still running faster than Usain Bolt in his prime leads to what we can dub as tremendous deterioration of real economic growth.
To add fuel to the flame, the driving force of global growth, China, is expected to grow at a measly 3%, its slowest growth figure since 1976. With an average growth rate of 9.5% for the last 30 years, 10 of which have cleared 10% growth, 3% is quite the significant drop. China’s population has also been reported to have shrunk for the first time since 1961, dropping by 850,000 to reach 1.412b citizens. Though 850,000 is a drop in the bucket when considering the total population, it’s only the start to a cascading drop in working age individuals.
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