NewsBite

Ruchir Sharma

September

Why it’s dangerous to be super rich in China

The number of billionaires has fallen 35 per cent in China, and corporate leaders may be devaluing their wealth, amid fears the state is targeting the rich.

July

Productivity growth in the EU’s big four economies has collapsed.

Why Europe is becoming poorer than America

Oversized governments in Britain and on the Continent have crushed productivity growth, allowing US incomes to grow twice as fast.

June

Markets fear that Mexico’s Morena party, having returned to power, will double down on its socialist agenda. But what Claudia Sheinbaum will do in office has yet to be seen.

Why markets like to see new political faces

Whether a government is weak or strong, left or right, doesn’t seem to matter much for economies, but new leaders are associated with higher growth and returns.

Joe Biden

It’s not the economy, stupid. Voters blame Biden for inequality

It’s unfair to blame the US president alone for imbalances that have been widening for decades, but nor will selling the good news harder make any difference.

April

Wall Street finished flat to open its week.

America’s ‘supercharged’ economy can’t last

One overlooked reason for US resilience is a tonne of stimulus still coursing through the economy.

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March

Bitcoin’s comeback is remarkable for defying the general shape of the current bull market.

Bitcoin fanatics are rightly feeling vindicated

The most popular cryptocurrency is starting to look like more than a passing fad.

February

US tech companies are getting older and larger and sucking the life out of other stocks.

AI mania tells a tale of two bull markets

While the US rise in share prices is all about tech, India’s boom is more broad-based.

January

The debate about Joe Biden centres on why he gets such low marks despite relatively strong recent economic data, including lower inflation.

Why political leaders are so unpopular now

Politicians need to recognise that the connection between headline economic data and political support has broken. Voters are reacting to long-term decline, and are looking for fresh fixes.

  • Updated

November 2023

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China’s rise as an economic superpower is reversing

China’s real long-term potential growth rate — the sum of new workers entering the labour force and output per worker — is now more like 2.5 per cent.

October 2023

Financial markets have mostly been subdued in reaction to the conflagration brewing in Gaza.

Why markets are relatively calm in the geopolitical storm

Investors as a group don’t act like individuals — their collective mind recognises risk as a historical constant.

September 2023

Shoppers wait in line outside the Apple Fifth Avenue store in New York for last week’s launch of the new iPhone. The US consumer has proved particularly resilient.

America’s mini economic miracle may be fleeting

Biden-era spending has turbocharged growth — but the resulting debts may bring pain. When the stimulus and other temporary boosts wear off, the American economy could settle into a long, slow grind.

Growing anxiety over China’s economic outlook is sapping investor confidence

China’s property bubble will cause drama, one way or another

Property bubbles fuelled by surging debts tend to end in sharp economic downturns, so a crisis scenario is more probable than a big bounceback.

  • Updated

July 2023

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The problem with tech giants riding the AI wave

The fact that the behemoths are dominating another wave of digital innovation points to deep dysfunction. No contribution they make can compensate for declining competition.

Joe Biden has used a sense of post-pandemic crisis to launch a latter-day New Deal, building infrastructure and industry ostensibly to compete with China and combat climate change.

America’s new exceptionalism is debt-financed

The US has started to look exceptional in a bad way. Once typical, it is now the biggest deficit spender in the developed world.

June 2023

LVMH’s Dior luxury clothing boutique in Paris. Europe is finally making sizeable money from an industry that it has ruled for centuries.

From Louis XIV to Arnault: why Europe’s luxury success is not all good

If it’s not clear how much smartphones boost productivity growth, it is safe to say French perfume and Italian handbags contribute even less.

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May 2023

Analysts who called for a China reopening boom find it more opportune to stay the course than to reverse themselves.

Wall Street’s rosy talk on China’s economy a charade

Analysts’ forecasts are now even more optimistic about China’s economy than Beijing’s unreachable growth target, leading to major losses for investors.

 A food stall in the state capital Bengaluru. The city’s growing wealth has spread to the countryside.

An economic miracle in India’s tech state

India is best understood as many countries, not one, too complex to be dominated by a single party or leader. The state of Karnataka shows that capitalism and democracy still have a future.

April 2023

The heavy gold buyers are central banks, which are sharply reducing their dollar holdings and seeking a safe alternative.

What strong gold says about the weak $US

Too confident in the indomitable dollar, the US saw sanctions as a cost-free way to fight Russia without risking troops. But it is paying the price in lost currency allegiances, with gold left as the main safe haven.

March 2023

Recent bank runs have been compared to the savings and loan crisis of the 1980s.

Bank rescue culture is feeding zombies and weakening productivity

While government intervention eases the pain of crises, constant state rescues also undermine capitalism.

February 2023

A Thai investor reads a newspaper in front of an electronic board displaying live market data.

The untold story of the world’s most resilient currency

After Thailand became ground zero in the Asian financial crisis, the baht achieved a long-running stability.

Original URL: https://www.afr.com/by/ruchir-sharma-p536h0