Global Economics…Wrestling with debt

From Japan-lite stagnation in the West to sustained growth in the East…how the debt crisis is transforming the world economy.

They thought it was all over…
Whatever happened to the sunny uplands? At the end of 2009 and the beginning of this year, it appeared that the global economy was well on its way to delivering a standard economic recovery. No longer does this seem to be the case. Admittedly, the numbers in the first half of this year have offered a welcome improvement in some parts of the world, allowing us to upgrade our 2010 growth forecasts for the likes of the US, Japan and Brazil. Nevertheless, the medium-term prognosis, at least in the Western developed
world, remains poor. Increasingly, the financial economy is leading the real economy. Last year’s financial news was mostly good, with huge confidence effects coursing through the world’s markets. This year’s news has been mostly bad, suggesting that policymakers are struggling to cope with the huge debts that form the bedrock of this crisis.

This report is only available to members of The Luxury Marketing Council