RSG World Economic Brief for November 2009

The World Economic Brief for November focuses on three key developments that have taken place in the world economy in recent months:

• Significant changes are taking place in the pattern of foreign purchases of U.S. government and corporate assets, with the previous rapid pace of foreign accumulation of U.S. assets declining dramatically at the summer’s end. This is in response to an increase in private saving in the U.S. as households and business rebuild their balance sheets.
  
  
• There are signs that the world economy is starting to recover from the deepest contraction of the post-World War II period. An increasing number of countries are reporting positive growth since the second quarter of 2009. International trade and commodity prices have also strengthened in recent months. The global recovery, however, is seen as fragile, and financial conditions across the world remain in a state of distress. Forecasts for countries and regions are given in the Brief.
  
  
• Prices on world oil markets have stopped their recent rise and may have begun to fall again. Some of the recent rise was attributable to financial transactions unrelated to oil fundamentals rather than supply and demand considerations in this key market, which may be unfavorable at this time to high oil prices.