Much of the world was shrinking in December

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Last night’s news from Europe of Q4 GDP has confirmed what was virtually a global recession. It’s only six weeks ago and the current surge of optimism makes it seem like it never happened but the majority of the world was in recession in December with Japan, the Eurozone and the US all shrinking in the quarter:

That’s roughly 55% of the global economy. History now of course but if does put in context the current share market rebound. The steep trajectory is similar to 2009 for a good reason.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.