In the past two months the world economy appears to have lost considerable momentum, reawakening similar fears to the early summer of 2010. Is the much feared yet anticipated “double dip” on its way?
Apart from the return of past culprits, two new factors have emerged this year. First, some of the “growth economies” are slowing because their policymakers are deliberately trying to slow growth from above trend. This is especially true for China. Second, and the really intriguing one, the supply chain consequences of the Japanese earthquake and tsunami. In this regard, what happens to the fortunes of the Japanese chipmaker Renesas Electronics might be one of the more important things to watch in coming weeks. Continue reading »