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K-shaped economy
Trends
- 1
Discussion is focusing on how US consumer spending is splitting into two tracks: higher-income households continue to spend freely, while lower-income households pull back under pressure from prices and borrowing costs. Analysts describe this divergence as a 'K-shaped economy', and retailers are watching the gap closely as it reshapes demand across sectors.
- 2El-Erian warns the K-shaped economy will dominate debate●Mohamed El-Erian on why we’ll be talking more about the K-shaped economy
Economist Mohamed El-Erian says the 'K-shaped economy' will be an increasingly important topic. The term describes diverging trajectories in which some sectors and households keep growing while others stagnate or decline. Writing for CNBC, El-Erian argues the split is becoming more pronounced, with policymakers and markets likely to focus more on these widening disparities in the period ahead.