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Economic Hightlights from July
Although the global economy has mounted a superficial rebound from the trough hit in 2009, increasing risks remain, both intermediate- and longer-term.
The intermediate-term risks are based primarily on faulted economic policies intended to deal with the economic collapse. These actions have resulted in a reflation of the global credit bubble.
The longer-term risks are also related to this reflation, in addition to a definite scaling down in public spending for various programs in advanced and certain emerging nations.
Despite this superficial economic progress, the “recovery” remains uneven with advanced nations lagging far behind the progress made in emerging nations. Most notably, advanced nations continue to experience persistently high rates of unemployment. Germany remains as the only notable exception in terms of advanced economies that are doing well. However, even Germany will soon be pulled down due to weakness in the EU.