An enigmatic slowdown
The usual economic troubles in unusual places
By Simon Cox | BNY Mellon
Simon Cox is Investment Strategist for Asia-Pacific at BNY Mellon Investment Management in Hong Kong.
THE chart below shows growth and inflation in an unidentified economy. Even without naming the place, it is clear that all is not going well. The country is no stranger to deflation, having suffered several months of falling prices in 2009. In more recent quarters, it has endured a steady slowdown in economic growth. As a consequence, inflation has remained below the official target for well over two years. Last month price pressures fell sharply again.
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