Hear directly from RBC Global Asset Management Chief Economist, Eric Lascelles in his monthly and quarterly updates. Representing RBC Investment Strategy Committee’s (RISC) economic views, Eric shares timely insights and the expectations of RBC GAM on the global economy.


Monthly Economic Outlook Webcast

Monthly Economic Outlook Webcast

Growth up / Heeding Minsky / Japan reforms / China shift - December 2017

Eric Lascelles, Chief Economist, RBC Global Asset Management, shares the latest views on the global economy and offers insight into today’s economic issues.

The webcast includes an audio and slide presentation.

Launch Presentation
 
Disclaimer

Key Highlights

  • Global economies are benefiting from market acceleration in the second half of 2017, which has been driven by fading secular stagnation and increasing investor confidence.

  • We have experienced an extended period of very low market volatility and, according to the Minksy financial instability hypothesis, low volatility leads to investors' quest for increased risk and yield.

  • Macroeconomic risks persist, including the late-stage business cycle, protectionism and strained international relations. However, on the positive side, fiscal stimulus, the end of secular stagnation and structurally low inflation continue to support global economic growth.

  • U.S. labour markets are growing – 35% of firms have positions they are not able to fill and almost 70% of new hires are people outside the participating labour force (i.e. those who aren't actively searching for work).

  • The Japanese labour market has been improving with increased participation, particularly by Japanese women. The country's traditional anti-immigration stance is tempering, resulting in rising foreign residency and foreign workers, which should help economic growth.

  • The gap between China's credit growth and GDP growth is narrowing, helped by Chinese policymakers' tightening grip on the shadow banking industry and decreasing excess capacity in the steel and cement industries.

 

Economic Compass

Eric Lascelles

Chief Economist
RBC Global Asset Management Inc.

View Biography >