Global Recession|Economic Recession|Economic Situation

http://buygoldingrams.com http://goldascurrency.com https://facebook.com/goldascurrency Global economy risks falling into renewed recession "We have identified three major economic risks," said Pingfan Hong, Chief of the Global Economic Monitoring Unit of DESA's Development Policy and Analysis Division, as the World Economic Outlook for 2013 was revealed on 18 December 2012. Mr. Hong pointed to the deterioration of the euro crisis, the US fiscal cliff and a possible hard landing for some large developing countries. Global Recession. "To mitigate these risks, policymakers worldwide are greatly challenged," underscored Mr. Hong, also describing how the world economy is still struggling to recover five years after the eruption of the global financial crisis. The first chapter of the World Economic Situation and Prospects 2013 (WESP) just launched, outlines that growth of the world economy has weakened considerably during 2012 and is expected to remain restrained in the coming two years. "A number of developed economies in Europe and Japan have already fallen into a double-dip global recession," explained Mr. Hong. The report also predicts that global economy is expected to grow at 2.4 per cent in 2013 and 3.2 per cent in 2014, a significant downgrade from the forecast six months ago. This growth pace will not be enough to overcome the continued jobs crisis faced by many countries. With existing policies and growth trends, it may take at least another five years for Europe and the United States to make up for the job losses caused by the Great Recession of 2008-2009. Root of economic slowdown Weaknesses in the major developed economies are at the root of the global economic slowdown. It is stressed that most of them, particularly those in Europe, are trapped in a vicious cycle of high unemployment, financial sector fragility, heightened sovereign risks, fiscal austerity and low growth. Several European economies and the euro zone as a whole are already in global recession, and unemployment here increased further to a record high of almost 12 per cent this year. "The US economy remains sluggish," Mr. Hong pointed out, referring to the trend seen in 2012 and with a predicted growth for 2013 of 1.7 per cent. Mr. Hong continued saying that "several large developing economies such as Brazil, China and India, which managed to recover rapidly in the aftermath of the global financial crisis, are currently also facing a significant slowdown". The economic woes in Europe, Japan and the US are spilling over to developing countries through weaker demand for their exports and heightened volatility in capital flows and commodity prices. Most low-income countries have held up relatively well so far, but are now also facing intensified adverse spillover effects from the slowdown in both developed and major middle-income countries. Global recession The report further assesses that present policy stances fall short of what is needed to spur economic recovery and address the jobs crisis. While policy efforts have tried to redress sovereign debt distress, the combination of fiscal austerity and expansionary monetary policies has had mixed success so far in calming financial markets and even less so in strengthening economic growth and job creation. Several European economies are already in recession. To address the situation, a number of new policy initiatives have been taken by the euro area authorities in 2012, including the Outright Monetary Transactions (OMT) program. But there has been no significant initiative towards boosting growth in the short run or tackling the ever-mounting crisis in the labor markets. The euro area economy is expected to grow by only 0.3 per cent in 2013 and 1.4 per cent in 2014 and because of the dynamics of the vicious circle, the risk for a much worse scenario remains high and could be triggered by deeper fiscal cuts and delayed implementation of the OMT program. Global recession The unemployment rate continued to climb to a record high during 2012. In Spain and Greece, more than a quarter of the working population is without a job and more than half of the youth is unemployed. Only a few economies in the region, such as Austria, Germany, Luxembourg and the Netherlands, register low unemployment rates of about 5 per cent. Unemployment rates in Central and Eastern Europe also edged up slightly in 2012. United States sees weakened economy The US economy also weakened during 2012, and growth prospects for 2013 and 2014 remain slow-moving. On the up side, the housing sector is showing signs of recovery, and further support is expected from the new round of quantitative easing recently launched by the Federal Reserve (Fed). The unemployment rate stayed above 8 per cent for the most part of 2012, but dropped to just below that level from September onwards. Global recession, us economy news,financial problems,global economic collapse,savings and loan crisis,greece economic crisis