From Bad to Slightly Worse- No luck for World Economy

If the influential Ifo Business Climate Index is to be believed, all that the world economies are doing to elevate their domestic markets in light of the recent economic slump isn’t amounting to much. The latest assessment calculated by this global economic indicator paints a lacklustre view of the current economic situation and a grim prediction in terms of the six-month economic outlook. While the situation shows an upward trend as compared to the last quarter, the momentary hike experienced this quarter isn’t expected to be carried forward to, or impact the final leg of the year- i.e., last quarter of 2013.

Breaking down the numbers, the economic prediction for Asia fell well below its long term average value. The major culprit for Asia’s showing is China’s trouble with the rebuilding of its economy- thereby affecting both the current indicator and future outlook for this Asian giant. On the other end of the scale, North America showed remarkable improvement, showing a strong positive trend in both metrics that symbolises the continued economic recovery in the North American region. Across the Atlantic, Europe recorded a positive run too. This as a result of the concrete economic steps undertaken by the EU that promises the next six months to be economically fruitful for Europe.

Economic experts are fully confident of a moderate value growth in the flagging fortunes of the US Dollar over the course of the next six months, while other world economies will have to content with domestic economic turmoil or issues carrying forth from other bigger, troubled economies. Experts at WES are confident that the short-term interest rates will continue to remain stable over the next six months; the long-term interest rates are expected to rise. In all, the world needs to sit out such a bleak economic forecast, keep building economic reforms into its existing systems and hope that most of them stick and are impactful.