A Two-Speed World: Asia and the Rest

A Two-Speed World: Asia and the Rest

 

Weekly balance sheet data from the World’s major Central Banks show aggregate liquidity growth broadly stable at 18.6% (3m ann.). Beneath the stable headline number, there is a divergence with Asian liquidity growth significantly slower than elsewhere. The People’s Bank of China is now level-pegging with the Bank of Japan at just over 1% (3m ann.). Meanwhile, US Fed liquidity expansion has picked up, and, together with the ECB, continues to outpace other majors (30.3% and 39.2%, respectively). This divergence reflects a similar gap in economic activity. China is outpacing other major economies by some margin, and Japan’s export sector is benefitting. Elsewhere, growth is lacklustre, but there are few signs of deterioration despite the recent lockdowns.

 

 

 

 

 

See our latest published research, Weekly Global Liquidity Update 19 February 2021

 

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