Last week saw the publishing of additional commentaries expressing concern about global growth. The FT’s monthly “nowcasts” indicate a lower rate of growth is on the horizon:

The world economy is still very far from a recession, but the nowcasts show clearer signs of a slowdown in global activity growth.This probably started in early 2015, but the downward momentum has gathered pace since the beginning of 2016. The model’s estimates of global GDP growth (blue line) have declined from 3.4 per cent in late 2015 to 2.9 per cent now, a development which warrants careful monitoring.

It is clear that the advanced economies have slowed significantly since last November.

RBA head Stevens observed similar developments in the RBA’s policy announcement:

Recent information suggests that the global economy is continuing to grow, though at a slightly lower pace than earlier expected. While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging market economies. China’s growth rate has continued to moderate.

…..

Financial markets have once again exhibited heightened volatility over recent months, as participants grapple with uncertainty about the global economic outlook and policy settings among the major jurisdictions. Appetite for risk has diminished somewhat and funding conditions for emerging market sovereigns and lesser-rated corporates have tightened.

Everyone seems to be jumping on the “slow growth is ahead” bandwagon. The reason is simple: there is scant evidence to support a strong growth argument. The BRIC meme is dead; China is slowing while Russia and Brazil are in a recession. The global commodity rout has negatively impacted a large number of smaller emerging economies. Japan contracted in the 4^thquarter, the US saw a sharp 4Q slowdown and the EU is barely growing.  India is the only potentially positive story, and it isn’t large enough to make a dent in the negative news.