Property Bubble in the SCANNZ economies?

In this video we look at the “SCANNZ economies” – carrying on the tradition of other country acronyms such as the BRICS or the PIIGS! Specifically, the video walks you through a couple of slides of a recent edition of the Weekly Macro Themes report. In the video we talk through what the acronym encompasses: Sweden, Canada, Australia, Norway, and New Zealand. These 5 economies share a few key traits, and chief among them is that they have considerably overvalued property markets. They also all share the trait of relative export sensitive economies – particularly on the commodity side. This commodity sensitivity helps explain the monetary policy settings, and how the new wave of a potential shared property bubble emerged. The SCANNZ economies are particularly vulnerable to the major theme of a global turning of the tides in monetary policy. A coming full circle of the trends and statistics mentioned in the presentation will surely present domestic risks for each of the SCANNZ economies but also could present financial system and economic risks at a global level.