Don't Look Now, But The World Is Decoupling In A Surprising Way

Decoupling. That was a big concept idea to the bust, when people thought the emerging world keep chugging along even if the US sucked wind.

It didn’t happen. Now we’re seeing it in a different way. Emerging market stock exchanges have been ugly. The impact of inflation on the emerging world has been much more painful, and now we’re even seeing some slowdown signs in a way not seen in the developed world.

Rohan Clarke (via PragCap) takes a look at some of the latest OECD leading economic indicators, and finds that if anything it’s the developed economies that are rolling over first.

Here’s an assortment.

China is still positive, but unstead.

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Photo: OECD

The US, by comparison, is looking much more solid.

chart

Photo: OECD

The euro, at least, is stable.

chart

Photo: OECD

Brazil is clearly slowing down.

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Photo: OECD

India is fine, but not blazing anymore.

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Photo: OECD

Japan is very strong looking.

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Photo: OECD

Bottom line: It’s nothing too sharp yet, but the emerging markets that were previously all the rage have some of the less impressive charts here.

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Photo: OECD

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