Global vulnerabilities, inflation, credit and labour markets

The world economy’s underlying vulnerabilities have been in sharp focus over the past few weeks, but more deep-seated wounds with longer-lasting scars have been avoided, at least for now. Still, the avoidance for now of bigger wounds does not mean that these vulnerabilities have been erased.

In our charts this week we focus on:

• Negative global growth surprises
• The recent strength of the US dollar
• Slowing euro area inflation
• Weaker bank credit growth in the US and Europe
• Mixed messages from the US labour market
• Increased youth unemployment in China