What's an ‘E-shaped' economy — and where do you fit in it?

Key development: the economy is being described as 'E-shaped' as income and wealth gaps widen between upper, middle and lower classes. The divergence risks weaker aggregate consumption and concentrated asset gains, increasing downside risk to GDP growth and elevating the likelihood of fiscal or regulatory responses. Position for softer mass-market demand and higher policy uncertainty that could disproportionately affect consumer-facing sectors.

Analysis

Key development: the economy is being described as 'E-shaped' as income and wealth gaps widen between upper, middle and lower classes. The divergence risks weaker aggregate consumption and concentrated asset gains, increasing downside risk to GDP growth and elevating the likelihood of fiscal or regulatory responses. Position for softer mass-market demand and higher policy uncertainty that could disproportionately affect consumer-facing sectors.