Politics is all about the economy in India,China, Europe, and the US and elsewhere. The ongoing United States’ Presidential Election is also mostly based on the economy and in reality that actual policy making has been out of map for few months as its highly concentrated on campaign and other election related stuffs. It’s also not possible to worry about the current financial system and do something drastic to address the issue at the same time.
Regardless of the obvious concentration on economic affairs, an important aspect about world economic condition seems to have been missed. It sounds odd, but it’s the truth that has to be dealt with.
In theUnited States, market experts examine through the timid signals of improvement in the labor market, building higher house prices and customer confidence. Looks like it is picking up, but the fear in European countries over the looming fall down of the currency system has collapsed since European Central Bank and governments said that they had never let that occur. But they are not sure how to keep the promise, but still they are trying their best to keep the economy stable, though it is going deteriorate.
New estimations have been released by the International Monetary Fund where it states that fourth quarter is excepted to see just 0.3% improvement, which is too less than previous year’s 3.2% and shortage from the 3.7% are already forecasted by IMF’s officials. They predicted the growth in the United States to be by 0.3% and believe that US economy to grow much slower than last year. Last year, it grew by 2% and this year, it’ll by just 1.7%.
Similar things are predicted in Japan; the UK’s forecasts about 6 months ago were 1.5%, but the new prospect says is for nil. The estimated growth in smaller advanced economies is down to 2.3% from 3.6%, which stood at 2.4% last year. For developing and emerging economies it has plunged to 5.5% from 6.3%, compared to 5.7% in the year 2011.
The analysts believe that 2013 will be far better than 2012, but global growth will be just 4% or less. For the US, especially the Britain and other euro area, the forecasts look worse than they looked in the early 2012 and the blame goes to political incompetency.
America and Europe stand betrayed, not just by the current political leaders, but by their entire supporting class.