First world recovering better than emerging economies

<p>Kia ora,</p><p>Welcome to Wednesday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news markets are waiting for some US Fed tapering signals.</p><p>In the meantime we should note the IMF has <a href="https://blogs.imf.org/2021/10/12/a-hobbled-recovery-along-entrenched-fault-lines/" target="_blank"><strong>trimmed their global growth estimates for 2021</strong></a>. Basically they see the developed world handling the Delta pandemic better because of substantial income and fiscal support measures, and they expect this group of advanced economies to fully recover in 2022. But the story is not positive for the emerging economies, for China, nor the low-income developing world. The rich/poor fault-line is worse now, they say.</p><p>The IMF's review does seem to be good news for Australia and their minerals sector. It identifies nickel, copper, lithium and cobalt as the top four energy transition metals likely to see surges in prices and production as the world works towards net zero emissions by 2050.</p><p>The IMF also reappointed its managing director after <a href="https://www.imf.org/en/News/Articles/2021/10/12/pr21297-statement-by-imf-exec-board-on-its-review-on-investigation-of-wb-doing-business-2018-report" target="_blank"><strong>questions were asked</strong></a> about her role in the now-disgraced World Bank "Doing Business" report.</p><p>After hitting an all-time high in July, <a href="https://www.bls.gov/news.release/jolts.nr0.htm" target="_blank"><strong>US job openings shrank</strong></a> in August and by more than expected. It was their first decline in eight straight months of expansion.</p><p>US consumer <a href="https://www.newyorkfed.org/newsevents/news/research/2021/20211012" target="_blank"><strong>inflation expectations</strong></a> rose again in September to a series-high 5.3%, the eleventh consecutive monthly increase. This news weighed on Wall S