New Normal (business)

New Normal is a term in business and economics that refers to financial conditions following the financial crisis of 2007-2008 and the aftermath of the 2008–2012 global recession. The term has since been used in a variety of other contexts to imply that something which was previously abnormal has become commonplace. It has been described as a cliché.[1]

The term arose from the context of cautioning the belief of economists and policy makers that industrial economies would revert to their most recent means post the 2007-2008 financial crisis.[2] The 2010 Per Jacobsson lecture delivered by the head of PIMCO, Mohamed A. El-Erian, was titled "Navigating the New Normal in Industrial Countries". In the lecture El-Erian stated that "Our use of the term was an attempt to move the discussion beyond the notion that the crisis was a mere flesh wound...instead the crisis cut to the bone. It was the inevitable result of an extraordinary, multiyear period which was anything but normal".[2]

The term has subsequently been used by ABC News,[3] BBC News,[4] the New York Times, and formed part of a question by Candy Crowley, the moderator of the Second U.S. presidential debate of 2012.[5]

The Australian newspaper gave the term the title "Cliche of the week" noting that its use had increased from 50 uses a month in 2002 to 700 by May 2011.[1]

China's New Normal

Since 2012, China's economy has shown a marked slowdown, with growth rates declining from double digit levels (before the 2007-2009 financial crisis) to around 7% in 2014. In 2014, a statement by Xi Jinping - General Secretary of the Communist Party of China - indicated that China was entering a 'new normal' (Chinese: 新常态). [6] This term was subsequently popularised by the press and came to refer to expectations of 7% growth rates in China for the forseeable future. It was indicative of the Chinese government's anticipation of moderate but perhaps more stable economic growth in the medium-to-long term.

External links

References

  1. 1 2 Pash, Chris (16 May 2011). "Use of the label 'new normal' on da rise". The Australian.
  2. 1 2 Navigating the New Normal in Industrial Countries. International Monetary Fund. 15 December 2010. pp. 12–. ISBN 978-1-4552-1168-5. Retrieved 18 October 2012.
  3. ↑ Gomstyn, Alice (15 June 2009). "Finance: Americans adapt to the 'New Normal'". ABC News.
  4. ↑ "Is America's high jobless rate the new normal?". BBC News Online. 10 August 2012.
  5. ↑ Johnson, Glen (16 October 2012). "Candidates aggressive in 2nd debate". Boston Globe.
  6. ↑ Saggu, A., and Anukoonwattaka, W. (2015). "China's 'New Normal': Challenges Ahead for Asia-Pacific Trade". United Nations ESCAP. Retrieved 9 July 2015.
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