Woman World Web

April 27th, 2009 by Professional editor working for frbiz.

Ming Chinese Academy of Social Sciences pointed out that the impact of global economic recovery is the most important factor in the future direction of the U.S. economy. Fed to buy bonds, the market is expected deflation to inflation expectations, if the United States before the economy recovers suddenly rising commodity prices, and the Federal Reserve to curb domestic inflation and interest rates, it will drag the world economy growth in the next two years.

Recently, a comprehensive foreign treatment, IMF is anticipated to down turn in 2009 in the international finances of 0.5-1%, it will be the first time in 60 years to shrink the international finances and the international finances in 2010 is anticipated to be a stepwise recovery, an boost of 1.5-2.5% of anticipated Inter.

Chinese Academy of Social Sciences Institute of World Economics and Politics, deputy director of the international financial research to the NEW YORK Ming said that in 2009 the United States, the European Union, Japan’s economy will continue to decline, the fastest growing U.S. economy is expected to be the resumption of the fourth quarter of 2009 is growth in the euro zone and Japan as early as bottomed, slow in the first quarter of 2010, the resumption of positive growth, but to restore to pre-crisis levels may take 3-5 years, is the relatively slow recovery.

For emerging markets, China’s first quarter may not be able to rebound the trend continued in the first half may be repeated the next few months, GDP growth is expected to occur in the second half compared rebound significantly. Other emerging market countries, the situation with China is similar to or later than the Chinese economic growth.

Ming sharp out that the influence of international financial recovery is the most significant component in the future main heading of the U.S. economy. At present, indications of warmer U.S. finances, but a lesser number of signs, not to work out if there is continuity. When the Federal Reserve to purchase treasury bonds, the market is anticipated deflation to inflation anticipations, inflation will not sway U.S. proficiency to command exchange rates and buying power is furthermore significant that if the United States before the finances retrieves abruptly increasing product charges, and the Federal Reserve in alignment to constrain household inflation The rate hike, it will pull the world finances development in the next two years.

Jean-Claude Trichet, the Bank for International Settlements in the organization from a central bank governors meeting said that while global economic growth in 2009 will be close to stagnation, but as a result of oil and raw material prices decline, as well as governments and central banks to take a series of stimulating the economy We believe the global economy in 2010 will be a noticeable recovery. Underestimated the financial markets these positive factors on the role of economic recovery.