The Economist brings us a story today on the overall picture of global economy.
The following infographic gives an interesting outlook for what’s in store.
Though the US and Britain are seeing an upswing, the rest of the global economy heading for what is classically defined as recession.
Virtually everywhere else, however, the news is grim and getting grimmer. The euro zone, the world’s second-biggest economic area, seems to be falling from a feeble recovery back into outright recession as Germany hits the skids. Shockingly weak industrial production and export figures mean Germany’s GDP is likely to shrink for the second consecutive quarter—a popular definition of recession. Japan, the world’s third-biggest economy, may also be on the edge of a downturn, because April’s rise in the consumption tax is hurting spending more than expected. Russia’s and Brazil’s economies are stagnant, at best. Even in China, still growing at a suspiciously smooth 7.5% a year, there are worries about a property bust, a credit bubble and a fall in productivity.
What this means for businesses, both small and corporate, is that an eye must be kept not only on the local but also the international markets in order to understand the overall flux and flow of perceived and predicted spending. With such an eye, as leaders of industry you will be able to keep an eye on your own perceived market for the year.
