Global economy slows

It had been growing by 4% a year, then slumped in 2008/09 and swiftly returned to 4% growth in 2010. Since then it has hovered at around 3%, but now seems to be heading towards just 2%.

All this is captured in the most insightful single line I have ever seen – The Economist magazine’s regular chart on overall global economic growth.

The commentary on 13th September highlighted that:

• Brazil has slipped into recession
• Russia has stalled
• Japan’s new sales tax has depressed consumption
• Euro area growth was a mere 0.7% in the year to June
• China contributed 45% of total global growth.

2.6% is not to be sneezed at, but 4% would be far healthier.