14-11-2025

Global Economy Faces Uncertainty and Risks

Date: 14-11-2025
Sources: economist.com: 7

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Summary

The global economy is facing various challenges, including the potential risks of a stock market crash, the impact of AI on job applications, and the dominance of the US dollar. Experts warn about high valuations of tech companies, and investors are bracing for a potential downturn. Meanwhile, older investors are driving the surge in the US stock market, and recessions have become increasingly rare in modern economies.

Key Points

  • The US tech sector's high valuations pose a risk to the global economy
  • Older investors are driving the surge in the US stock market
  • Recessions have become increasingly rare in modern economies
  • America's 'shutdown economy' is causing concerns about reliable data
  • India's diverse economy and democratic institutions contribute to its relative stability

Articles in this Cluster

Finance & economics | Latest news and analysis from The Economist

The Economist's finance and economics section features various articles discussing global economic trends, challenges, and analysis. Topics include the impact of AI on job applications, the dominance of the US dollar, the future of global trade, and the potential consequences of prolonged low interest rates. Other articles touch on personal finance, the effects of recessions becoming rare, and the challenges posed by America's shutdown economy. The section also includes insights from the head of the IMF on global uncertainty.
Entities: The Economist, IMF, US dollar, AI, personal financeTone: analyticalSentiment: neutralIntent: inform

How markets could topple the global economy

The article discusses the potential risks of a stock market crash, particularly in the US tech sector, and its possible impact on the global economy. Experts have warned about the high valuations of tech companies, and investors are bracing for a potential downturn. The article suggests that if the AI bubble bursts, it could lead to an unusual recession. It highlights the concerns of central bankers, investors, and the IMF, and notes that some investors have positioned themselves for another 'big short' similar to 2007-09.
Entities: America, IMF, NASDAQ, Central bankers, Bank bossesTone: analyticalSentiment: negativeIntent: inform

Old folk are seized by stockmarket mania

The article discusses how older investors, particularly grandparents, are driving the surge in the US stock market, despite the potential risks of exacerbating a crash. While investing in equities may make sense for individuals, the trend is concerning as it may lead to a market downturn. The article highlights that Generation Z has been associated with flashy investment trends, but it is actually older investors who are having a significant impact on the market.
Entities: Generation Z, US, America, Washington, IndiaTone: neutralSentiment: negativeIntent: inform

Recessions have become ultra-rare. That is storing up trouble

The article discusses how recessions have become increasingly rare in modern economies, particularly in rich countries. Historically, economies were volatile with frequent recessions and recoveries, but as capitalism matured and policymaking improved, recessions became less frequent. The article argues that the current rarity of recessions may be storing up trouble for the future, as continuous growth can make economies 'fat and slow'. The author references historical data from England and Britain to illustrate the trend of decreasing recession frequency over time.
Entities: England, Britain, America, Washington, IndiaTone: analyticalSentiment: neutralIntent: inform

The problem with America’s shutdown economy

The article discusses the issue of America's 'shutdown economy' caused by gridlock in Washington, which has prevented the release of official data. The Bureau of Labor Statistics (BLS) is used as an example, where the appointment of a partisan figure as its head raised concerns about its independence. The article highlights the importance of reliable data for understanding the economy and making informed decisions. It also touches on the potential consequences of a lack of trust in official statistics and the impact on the economy.
Entities: America, Washington, Bureau of Labour Statistics (BLS), President Donald Trump, E.J. AntoniTone: analyticalSentiment: negativeIntent: inform

Tree murders and the economics of crime

The article discusses a dispute between two wealthy individuals, Amelia Bond and Lisa Gorman, over trees on their adjacent properties in Camden, Maine. Bond poisoned Gorman's 70-foot oak trees to improve her view, leading to a public spectacle and legal action. The article uses this incident to explore the economics of crime, highlighting how wealthy individuals may engage in destructive behavior to achieve their goals.
Entities: Amelia Bond, Lisa Gorman, Camden, Maine, L.L. BeanTone: neutralSentiment: negativeIntent: inform

What explains India’s peculiar stability?

The article discusses India's relative stability amidst turmoil in its neighboring countries, including Nepal, Bangladesh, Sri Lanka, and Pakistan. While these countries have experienced protests, revolutions, and economic crises, India remains calm. The article explores possible reasons behind India's stability, highlighting its diverse economy, democratic institutions, and leadership. It also touches upon the challenges faced by India's neighbors, including inequality, corruption, and poor governance.
Entities: India, Nepal, Bangladesh, Sri Lanka, PakistanTone: analyticalSentiment: neutralIntent: inform