Global Economic Review

Global Economic Review

Since the global economy has been experiencing a severe downturn, immediate prospects for growth in Europe are not positive for the first half of 2002. Analysts in most nations concur that recovery will begin to gain ground in the second half of 2002 which means that GDP growth this year is expected to rise by about only 1.2% Analysts are also reporting that in some nations, there are early indications that a low point has been reached and conditions for recovery are in place. The U.S. is an example of this model, where a analysts show a sizeable fiscal stimulus coupled with rapid monetary loosening. They expect this to contribute to starting a recovery from Q2 into coming months. Market watchers predict recovery probably will be slack as compared to previous economic crises. Some positive movement in consumer confidence is being felt now. Experts reveal capital goods orders are on the increase and business inventories shrunk turn-around in the stocks cycle. This is predicted to assist the manufacturing industry, specifically. On the negative side, unemployment is rapidly growing in the U.S. Other areas such as Mexico, Canada and Southeast Asia have also been pummeled by the economic downturn in the U.S. This crisis has also worsened severe problems in Japan and Argentina. Emerging economies are also feeling the pinch, which has just intensified their downturns. Meanwhile, effects are also being felt globally due to Argentina's economic woes.