Although world GDP growth is projected to decelerate in 2019, there are still pockets of the global economy that continue to expand at high, and potentially unstainable, rates.
We examined the classic signs of overheating - accelerating inflation, rapid GDP growth, credit expansion, rising real interest rates and tightening labor markets and included the impact from capital inflows and short-term debt. Using eight potential warning signs, we compiled an overall index that provides an early warning system for countries that are at risk of overheating.
While this index does not necessarily suggest that these countries face an imminent threat of crashing, there are signs that economic growth may be exceeding potential and a correction might occur in the near future.
Download: S&P Global ranks country vulnerability to economic overheating
