Global Economy: Transition year

by: Nick Kounis

The potent combination of declining systemic risks, unprecedented monetary expansion and private sector healing continues to sow the seeds for economic recovery. Despite these positives, aggressive fiscal consolidation means that the improvement in global economic conditions will not be very significant this year, but foundations are being set for a stronger recovery in 2014 and beyond. The eurozone economy will lag behind in this process, as it suffers from bank deleveraging, rising unemployment and the fall-out from the weaker yen. Overall, the transition from the anaemic growth rates that have followed the Great Recession to above-trend growth rates next year is on track.