In this episode, we will be discussing an article published on March 16th in the Economist Magazine, titled “Is the global investment boom turning to bust?”
The article describes how companies worldwide are scaling back their investments due to various factors, reversing the investment boom that emerged after the COVID-19 pandemic. In other words, the boom (which was the post-COVID increase in spending) has decreased substantially, so the boom as turned to a bust.
The sub-title gives us more information and introduces us to another key expression: “Why capex spending is now heading in the wrong direction.”
Capex refers to Capital Expenditure. Capex: Capital Expenditure. So, if there is a ‘bust’, capital expenditure is “heading in the wrong direction.”
Listeners of this podcast seem to be enjoying the idiomatic expressions I have been teaching. So, let me share one with you that deals with a situation when a boom turns into a bust. It is: “Riding the roller coaster.” This idiomatic expression is used to describe the ups and downs or fluctuations in investments, reflecting the unpredictable nature of market cycles and the potential for both rapid growth and sudden declines. The term “roller coaster” refers to a thrilling amusement park ride with steep inclines, sharp turns, and sudden drops. When used metaphorically in this expression, a roller coaster symbolizes the dramatic changes and uncertainty often experienced in the world of investments and capital expenditure.
Now, if issues related to investment interest you, you might also want to check out a somewhat related English lesson I did last October about a similar situation. It was titled: “Fintech Financing Slump.“
Now, before we review the vocabulary one last time, I have two important reminders for you: if you are someone who needs to give presentations in English, I offer a very good video seminar on this topic. It will teach you how to organize your presentation to make it easier to understand. That video is on the webpage. Also, let me know if you would like to have some private English conversation classes with me. Even just one or two hours of class a week can really improve your fluency in English.
Thank you for listening to “English for Economists”. Today you heard the titles: “Is the global investment boom turning to bust?” and “Why capex spending is now heading in the wrong direction.” You have learned that:
A “boom” refers to a period of rapid growth or expansion in an economy, often characterized by increased investments, high demand, and job creation.
A “bust” is the opposite of a boom, representing a period of economic contraction, often marked by reduced investments, low demand, and job losses.
“Capex” or “Capital Expenditure” refers to the money a company spends on acquiring, maintaining, or upgrading its physical assets, such as buildings, machinery, and equipment, to increase its capacity or efficiency.
Take care, and I’ll be back soon with another lesson.
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Photo credit : Gabriel Valdez in Unsplash
Article: https://www.economist.com/finance-and-economics/2023/03/16/is-the-global-investment-boom-turning-to-bust
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