Bridgewater Associates explores how aging developed economies, high debt, weak productivity, and limited monetary policy flexibility are reshaping the investment landscape. With developed world potential growth near 1%, the paper argues that income generation and emerging market growth may matter more as traditional growth engines fade.
As Economies Lose Potential Energy, Investment Considerations
Bridgewater
Erin Miles, Bob Prince
Article
1 Pages
Key Takeaways
Developed Growth Slows: Potential GDP growth across the developed world has fallen near 1%, its lowest level in roughly a century.
Debt Constrains Expansion: Historically, growth was roughly one third lower when debt to GDP was flat or falling versus periods when debt burdens were expanding
Emerging Markets Diverge: Some emerging economies could generate 4% to 6% productivity growth and 5% to 10% annual nominal GDP growth over the coming decade.
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