Global economy: fighting for fiscal future | Pakistan Today | Latest news, Breaking news, Pakistan News, World news, business, sport and multimedia: Uncertainty
The world economy faces exceptional – perhaps, even unprecedented uncertainty. A growing prevalence of convenience and snacking will make eating on-the-go, the new “normal” as it enters 2012. The rebound in output among developed countries has proven feeble, yet fiscal austerity, especially in the eurozone. The collective austerity of developed economies will likely bring on one of the most severe fiscal contractions in many years. These effects will be partly offset by developing countries, although growth is moderating as global financial conditions deteriorate.
Global perspective
Euromonitor International has forecasted a turbulent period ahead. It wrote, “World growth will slow down in 2012 amid ongoing sovereign risk and austerity programme. The by 3.8 per cent in real terms in 2012, down from 3.9 per cent in 2011 and 5.2 per cent in 2010. The slowdown might be attributed to financial instability and fears of sovereign risk, which threaten to spread beyond a few European economies. In other developed countries (such as the USA), policy indecision exacerbates uncertainty. As a result, stimulus programmes launched in 2010-2011 are being replaced by austerity measures.” Euromonitor expects developed countries to grow by 1.6 per cent in 2012 in real terms. Such an outcome would be below historical trends and several economies are likely to experience sharp slowdowns, notably in the eurozone, where sovereign risk is high. Collectively, advanced economies will slip into a synchronised slowdown as the loss in confidence spreads to consumers, bankers and investors.
The world economy faces exceptional – perhaps, even unprecedented uncertainty. A growing prevalence of convenience and snacking will make eating on-the-go, the new “normal” as it enters 2012. The rebound in output among developed countries has proven feeble, yet fiscal austerity, especially in the eurozone. The collective austerity of developed economies will likely bring on one of the most severe fiscal contractions in many years. These effects will be partly offset by developing countries, although growth is moderating as global financial conditions deteriorate.
Global perspective
Euromonitor International has forecasted a turbulent period ahead. It wrote, “World growth will slow down in 2012 amid ongoing sovereign risk and austerity programme. The by 3.8 per cent in real terms in 2012, down from 3.9 per cent in 2011 and 5.2 per cent in 2010. The slowdown might be attributed to financial instability and fears of sovereign risk, which threaten to spread beyond a few European economies. In other developed countries (such as the USA), policy indecision exacerbates uncertainty. As a result, stimulus programmes launched in 2010-2011 are being replaced by austerity measures.” Euromonitor expects developed countries to grow by 1.6 per cent in 2012 in real terms. Such an outcome would be below historical trends and several economies are likely to experience sharp slowdowns, notably in the eurozone, where sovereign risk is high. Collectively, advanced economies will slip into a synchronised slowdown as the loss in confidence spreads to consumers, bankers and investors.
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