Shaw Capital Management Korea: World Economy and Raw Material Shortages

Shaw Capital Management Korea: World Economy and Raw Material Shortages Shaw Capital Management Korea: World Economy and Raw Material Shortages - We have seen major developing economies like China and India apply the brakes earlier this year, as inflation... More

Shaw Capital Management Korea: World Economy and Raw Material Shortages Shaw Capital Management Korea: World Economy and Raw Material Shortages - We have seen major developing economies like China and India apply the brakes earlier this year, as inflation grew on the back of commodity shortages. World growth was running at 4. 5%, only 1% or so below the record growth rates of the mid2000s. This was too fast for raw material supplies to accommodate with current technology. Shaw Capital Management Korea: - World productivity growth has been slowed down by this raw material shortage … this in our view was the cause of the sharp slowdown in 2006 which in its turn caused the collapse of demand for houses in the US and so the sub-prime crisis. It will take a decade for new technology and possibly new supplies to allow renewed productivity growth; with plentiful supplies of raw materials this was the era of computer-led growth in productivity. As growth has been slowed worldwide, so alre Less