Britain may have escaped another downturn, but "recovery remains elusive" throughout Europe, according to the International Monetary Fund. Gross Domestic Product showed an increase of 0.6 percent for the second quarter, according to London officials, and growth was more broadly based, they said, even as they warned of more economic headwinds.
For its part, the IMF said "extreme market stresses have subsided," but an elusive recovery means euro area GDP "is expected to contract by 0.6 percent for a second consecutive year in 2013, before expanding modestly by 0.9 percent in 2014."
Moreover, with unemployment, especially among the youth, at record levels, the IMF pointed out, "there is a risk of long-term damage to potential growth and to political support for reforms."
Add to that picture a report that the Asian economy, which had been booming, is beginning to sputter.
Meanwhile, hopes for the American economy may brighten -- or not -- tomorrow with the release of the first estimate of second quarter GDP. It grew by 1.8 percent in the first three months of this year, after a minimal growth of 0.4 percent in 4Q12.
And on Wednesday, President Obama began his barnstorming tour of the U.S. to drum up support for his economic plan even as he took potshots at the Republican opposition for attempting to block his every move.
All in all, it looks like we're living in interesting times.
No comments:
Post a Comment