Global trade growth collapses, sending unambiguous signal of economic slowdown25 September, 2012, 21:35. Posted by Zarathustra
But certainly, no one will ever say that the global economy is in good shape. The European economy is still showing weakness, and the Chinese economy is not rebounding as there is no stimulus coming through, contrary to what the market has been expected. The US has been in a relatively good shape, as we expected. Still, no one will say that the US economy is doing fantastically.
So while the tail risks have been removed, the fact that the global economy is slowing is unambiguously clear. One of the clearest sign we see is the chart below, which shows the global trade growth (% yoy) from Morgan Stanley. Without a doubt, it is collapsing.
Source: Morgan Stanley