The global economy is in a crucial situation, as described by former RBA banker Don Stammer. According to him, the current scenario shows that after a disappointing performance from last year, the economy is “teetering on a knife edge in 2014”.
Various behaviors from major countries have affected the economy in the past year. With US still productive and experiencing improving employment conditions, Europe recovering from a recession and Japan progressing with their economic policies, the global landscape seems to be in an upward trend.
But unfortunately this is not the case. China’s GDP was below expectations, and deflation risks looming from low inflation numbers from progressing countries are all looming ahead.
In Australia, house prices and the low interest rates are a major economic concern. It is forecasted that the nation will experience a slow growth throughout the year, at around 2%, according to the Financial Standard’s Chief Economist Forum.
Read more about this on the Financial Standard website.