Subscribe to the BlogAcross the globe, countries are showing some signs of pull back from the global crisis. China is again leading the pack with a robust 8% GDP growth, while Australia is expecting the GDP growth to accelerate to 4% plus. Also India and South Korea are back into high growth path.
But the European zone countries are not showing any signs of recovery at all, and in fact few of them are showing signs of getting into deep trouble. Greece and Iceland are already on ICU and are expecting major and generous help from European friends and IMF.
And England is seeing further correction in housing prices apart from increasing unemployment. And Germany is also not showing any recovery signs, as things are seen only stabilizing at current levels.
So expect another bout of stimulus planning by the European governments as they cannot afford to see their region alone being in a recession, while the rest of the world gets into a growth trajectory.
The European zone is facing the problem a split in the near future, if the economic turmoil continues. UK and Germany are showing weak signs, and it is only a question of another few months, before these two major countries start jacking up interest rates.