IMF has just lowered global growth expectations because of slower growth in Latin America, Japan & China. World Bank has lowered its growth estimates for China and East Asia. Markets have also been hit by weak German data.
The markets may have already factored these: Japan has been in recession for long; Europe has been ailing with problems in Portugal, Greece, Spain. The key issue in the European economies seems to be ageing: the ratio of non-productive to productive labor (in these economies) is high. The Chinese economy is stalling; but it should revive soon.
However, the USA and Indian economies should counterbalance. With a command over a quarter of the World GDP by PPP, the two economies could keep the world growth on momentum. The recent employment figures of USA encourage one to be optimistic. The Indian economy seems to have a new direction. One high growth area is Africa though corruption and Ebola may temporarily hold this continent back.
Yet sentiments seem hesitant on global markets. "Fear creates its own ghosts which are more fearsome than fear itself!"
The markets may have already factored these: Japan has been in recession for long; Europe has been ailing with problems in Portugal, Greece, Spain. The key issue in the European economies seems to be ageing: the ratio of non-productive to productive labor (in these economies) is high. The Chinese economy is stalling; but it should revive soon.
However, the USA and Indian economies should counterbalance. With a command over a quarter of the World GDP by PPP, the two economies could keep the world growth on momentum. The recent employment figures of USA encourage one to be optimistic. The Indian economy seems to have a new direction. One high growth area is Africa though corruption and Ebola may temporarily hold this continent back.
Yet sentiments seem hesitant on global markets. "Fear creates its own ghosts which are more fearsome than fear itself!"
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