Growing Economies are back: Economies around the world showing strength
Leaders are Germany and Canada
Germany and Canada are picking up pace. The rest of the G7 countries are growing at a stable pace, the Organisation for Economic Co-operation and Development said.
Its leading indicators, which predict future growth, also show Brazil and Russia’s economies picking up pace while China and India grow at a stable rate – meaning the BRIC nations are joining the global recovery.
Analysts at the OECD look at measures including business orders, corporate confidence and stock market moves to try to anticipate moves in the economy in the coming six to nine months.
Rising inflation is putting pressure on household spending, but companies are still hiring workers and businesses – particularly exporters – are confident, so economists expect growth to pick up over the rest of the year.
The global recovery should help this happen as growth abroad should boost demand for British goods.
Some of the smaller economies monitored by the OECD are showing signs of slowing momentum. These include Greece, Mexico and Portugal.
The Global Cleansing
From our experience, the “cleansing” that has happened over the last decade, while excruciatingly painful to most, has, as expected, lead to a cleaner books and stronger companies. Many of the businesses that were built on “less than solid frameworks” have now collapsed. The businesses that have replaced them are stronger, but more importantly, wiser. The percentage of companies that provide applications for financing are now of a higher quality than ever seen before. Best of all, the number of fraudulent applications has dropped as well, partially because we have learned how to build in barriers to deter fake applications as well. We are now concentrating on many more “doable deals” because we do not have as many fraudsters to deal with.
What do you think? Do you believe the destruction of the global economy has created as stronger breed of business leaders and entrepreneurs? Share you comments below, it should be a good discussion.