There have been signs in recent years that the global economy is finally entering into a stage of economic remission. However, this remission is still limited by a number of different factors, from the effect of government borrowing to a slower than expected rate of recovery in some countries. Anyone that wants to stay on top of the current world economic market can do so by using financial reporting software, and by taking the time to review different trends from around the world on a regular basis.
The International Monetary Fund’s recent report into the state of the world economy indicates that we’re still experiencing a period of adjustment and cautious growth – this primarily involves countries having to adapt to new conditions following the financial crisis of 2008, as well as more long term structural issues with debt. For example, China has experienced an account surplus, while government investment in property schemes in the UK are injecting public money into the economy without necessarily lowering the risk of future economic problems.
It’s important to view the global economy as being in remission, rather than full recovery. The US government shutdown is threatening to derail a period of extended economy recovery, while concerns are still being raised over the American debt ceiling. Budget wrangling issues also have an effect on credit lines, and on the value of the dollar. To this extent, the IMF’s Christine Lagarde is suggesting that failure to resolve political infighting could delay the chance of continued economic recovery and confidence in the global market.
At best, recovery is going to be sluggish in most countries, despite stimulus packages. Some positive signs of recovery are being shown in Europe and Japan, with the latter’s quantitative easing programme helping to reverse some negative economic trends. The eurozone’s quarterly growth has been stable, although economic expansion in the US has slowed in the second half of 2013 to 2.3 per cent; unemployment also remains a major concern for the United States.
In the eurozone, debt levels are still being affected by the cost of bail outs for the banking sector, and by cautious approaches to raising interest rates below low figures. Some recent increases in the euro against the dollar – 0.6 per cent at last count – is, however, positive considering the problems faced by the eurozone in recent years.
Optimism over a senate confidence vote for Italian Prime Minister Enrico Letta is also contributing to cautious signs of recovery in some of the worst hit European economies.
Investors that want to stay ahead of market trends for the international economy can do so by ensuring that they sign up to financial reporting software; this can make it possible to receive realtime updates on price indexes and factors such as the cost of logistics. Moreover, it’s worth using software as a way of processing large amounts of data and gaining insights into and comparisons of different markets.
