- Inflation continues to creep higher and is close to or at 2% in major developed markets, although core measures of inflation remain below target.
- Despite slower-than-expected March-quarter growth in the US, there are signs of a stronger June quarter, including improved consumer spending and business investment.
- Tariff threats between the US, China and Europe are yet to be resolved and risk escalating into a trade war that could damage global trade.
- In Italy, the political impasse was finally broken, with a coalition government formed between the two popular right parties, Lega Nord and the Five Star Movement.
- Japan’s economy contracted in the March quarter, bringing into question the efficacy of the Bank of Japan’s quantitative easing measures.
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