Europe Remains the Wildcard in the Global Economy
The muted growth in Europe is far-reaching and negatively impacting the global economy…and the evidence for this is mounting.
Six eurozone countries are in a recession, and Germany and France could join in next year.
China, the world’s second largest economy, may still be heading for a hard landing, albeit, the government will likely do whatever it can to prop up its economic growth and make sure the growth is given help. The country’s 2012 gross domestic product (GDP) is estimated at a 7.5% GDP growth rate, according to Premier Wen Jiabao. This would be the lowest economic growth since 1990. Other pundits feel that China could still expand at over eight percent this year; however, much of the growth will be dictated by what happens with the debt crisis and muted economic growth in Europe and the eurozone, which has lessened the demand for Chinese-made goods.Japan, the world’s third largest economy, is also in an economic stalemate that is negatively impacted by the lack of economic growth in Europe. Contrarian Investing