In light of recent stock market volatility and the ongoing expansion, Anil Puri, director of the Woods Center for Economic Analysis and Forecasting, and Associate Professor of Economics Mira Farka, Woods Center co-director, presented their annual spring update of the Economic Outlook and Forecast at the Hotel Irvine on May 3, examining the state of the global, national and local economies.
After several years of relative tranquility, especially in 2017, financial markets have been caught in increased volatility in recent months, which has dominated headlines despite a continuing economic expansion resulting in some of the highest employment rates in the post-World War II era and a historically long slog of continuous GDP growth.
“2017 was a remarkable year. Stock markets around the globe soared, volatility was at historical lows, inflation remained subdued, and monetary policy continued to remain accommodative across the world,” report Puri and Farka.
“Alas, 2018, has ushered in a dourer mood. Retail sales slumped for the third straight month in February, vehicle sales have plateaued, construction took a step back earlier this year and home sales continue to struggle. More importantly, market volatility is back with a vengeance as if making up for lost time last year when it was conspicuously absent,” they say. Read More