Photo above: The Hertford Bridge in Oxford, England. Used by Permission. © Tom Ley 01302 782837

Sunday, January 31, 2010

RSG World Economic Brief - February 2010 by Dr. Douglas O. Walker

The latest RSG World Economic Brief looks at the global outlook for 2010 and the recovery of world stock markets from their lows of last year.

Here are some highlights from the Brief:
  • World stock markets have recovered somewhat from the sharp drop during the second quarter of 2009. The still remain well off their highs. Of all the developed countries, the market in the United States fell less than other economically advanced countries while the Euro Area was hardest hit.

  • The United Nations has just released its semi-annual forecasts for the world economy. The picture presented is a world economy on the mend, with an increasing number of countries registering positive growth in production and trade. As above, world equity markets seem to have recovered from their lows. Nevertheless, the global recovery is seen as fragile and conditions in financial markets are not supportive of rapid growth. A table of forecasts for economic growth in 2010 for main world countries and regions is provided.

  • Some important global financial market and regional economic developments are highlighted.

  • Finally, the Brief looks at the possibility that the Chinese economy may be overheating, and asks students "Questions to consider" about the risks and effects of a growth rate in China that is too rapid to be sustained and that is associated with real estate and credit "bubbles". Students are urged to ask themselves these questions, think about them, and discuss them with the Brief’s Editor, Mr. Frederick Poorbaugh, Teaching Assistant for the economics courses, during his office hours from 2 to 4 pm on Thursdays in the Political Caucus Room on the Third Floor of Robertson Hall. Distance students may contact Erick by e-mail at and by phone during his office hours at 757-352-4723.
The world economy appears to be recovering from one of its deepest downturns in decades. February's Brief summaries the outlook as now assessed by the United Nations and World Bank. These institutions point to the year 2010 as one of recovery, but they also stress that the current revival is weak in many world regions and remains uncertain everywhere.

1 comment:

  1. Thank you for this informative economic brief.