In Europe, the latest signals are that Spain will not take a bailout in the immediate term. Jay Bryson, a global economist with Wells Fargo Securities, says that politics may be to blame for the delay, “there’s an important election coming up in Catalonia, which has talked about succeeding from Spain, in November, and so it’s kind of politically embarassing to get a bailout right now.”
Outside of Europe, there are also economic concerns about China’s slowing economy. Bryson doesn’t expects a soft landing over a hard crash,”I don’t think we are going to be looking at a China growing ten percent again, if ever,” says Bryson, but the Chinese economy “is not overly levered, you look at consumers, they are not like American consumers back in 2007 with the housing crash.”
Increasingly though, consumer spending rather than investment is driving growth in China, which, says Bryson, “tends to grow slower.”
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
