Since the global financial crisis, credit to the private nonfinancial sector in emerging markets and developing economies (EMDEs) has surged. Credit to the nonfinancial private sector increased to 60 percent of GDP. A large literature has identified credit booms as an early warning indicator of macroeconomic or financial stress. Source: WEF
U.S. and Chinese senior officials spoke by phone this week, the second call since the late June summit at which the two sides agreed to a truce in their ongoing trade conflict. Source: Bloomberg
The Bank of Korea’s rate cut today is a mere reversal of a 25 basis point hike in November 2018 rather than a real policy stimulus for the economy, which is close to or already in recession. We believe this is just the beginning of the easing cycle. Source ING
Japan logged a goods trade deficit of ¥888.8 billion ($8.2 billion) in the first half of 2019, weighed down by sluggish exports to other Asian countries amid intensifying trade tensions between the United States and China, government data showed Thursday. Source Japan Times
