Charting the World Economy: The Scars of Protectionism

(Bloomberg) -- The first full working week of 2020 was a reminder of the economic fallout across the globe from political battles over trade and Brexit.

The hit to the U.S. from its dispute with China was laid bare by Commerce Department data, while the latest jobs report showed a modest softening in the labor market. Bloomberg Economics put some numbers on the damage to the U.K. over the past three years.

While tariffs have exacted a toll across the global economic landscape, massive wildfires are Australia’s most-immediate challenge.

Here’s some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy.

U.S.

The U.S. labor market ended the year with a little less momentum, adding fewer jobs than forecast in December. Wage growth cooled too, and Bloomberg Economics said it was a “reality check” for the 2020 optimists.

Crunching data, the U.S. Chamber of Commerce concludes that more than half of U.S. states are facing retaliatory tariffs on at least 25% of their exports to the European Union and China.

Europe

German industrial production rebounded in November after two months of declines, in a cautious sign that Europe’s largest economy may be near the bottom of its manufacturing slump.

The U.K.’s lackluster growth relative to its peers suggests Brexit has cost the economy 130 billion pounds ($170 billion) since the 2016 referendum, according to calculations by Bloomberg Economics -- and the number is going to keep getting bigger.

Asia

Australia’s economy is likely to be further weighed down by wildfires that have scorched an area larger than the Republic of Ireland and could intensify in coming months with more hot, dry weather predicted.

Emerging Markets

Iran’s economy has been squeezed by U.S. sanctions, suggesting it can’t afford further military escalation, according to Bloomberg Economics.

World

Lower energy intensity and inflation means $100 a barrel wouldn’t feel the same as when crude oil rose to that level in 2010 and 2011 -- instead it will feel like $76.

--With assistance from Ziad Daoud (Economist), Tom Orlik (Economist), Jamie Murray (Economist), Dan Hanson (Economist), Michael Heath and Reade Pickert.

To contact the reporters on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net;Vince Golle in Washington at vgolle@bloomberg.net

To contact the editor responsible for this story: Fergal O'Brien at fobrien@bloomberg.net

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