World
economy not yet out of woods: Experts
Despite some recent signs of a
timid economic recovery and efforts to boost activity, the global
economy is awash with uncertainties and probably will remain
vulnerable for most of 2003, analysts said.
"We expect a gradual recovery of
the global economy next year, with more fiscal stimulus coming
in the USA and Europe eventually following," Deutsche Bank chief
economist in New York, Peter Hooper, said.
"We expect a gradual recovery of
the global economy next year, with more fiscal stimulus coming
in the USA and Europe eventually following," Deutsche bank chief
economist in New York, Peter Hooper, said.
The Organisation for Economic Development
and Cooperation (OEDC) also said in November that the global
economy is heading to wards recovery although not before 2003
at least, and only after a periods of uncertainty.
Worldwide
trade to benefit from G-20 pledge
Worldwide trade stands to receive
a strong boost after a pledge by leading industrialized and
developing nations at a conference in New Delhi to work for
the removal of high trade barriers and subsidies, an analyst
said recently.
Finance ministers and central bankers
of the Group of 20 (G-20) countries agreed to take the steps
after acknowledging in a declaration recently that the benefits
of globalization were yet to spread to every part of the world.
G-20 which includes 19 countries
and the European Union was set up in 1999 as a forum for industrialized
countries and emerging markets to encourage financial stability.
It groups Argentina, Australia,
Brazil, Britain, Canada, China, France, Germany, India, Indonesia,
Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa,
Turkey, the Untied States and the European Union.
At the one-day conference, the
G-20 countries also agreed to strengthen their financial systems
and step up efforts to cut all sources of funding to terrorist
organizations. Sanjaya Baru, leading economist and editor of
the Financial Express said that the declaration held immense
promise.
US
to protect insurance industry
US President George W. Bush says
legislation he signs to shield the insurance industry from catastrophic
costs of future terror attacks is vital to the war on terror
and to U.S. economic security.
"Terrorism insurance will help
get America's hardhats back on the job, create new jobs for
America's workers and spur billions in new investment in construction
projects all across the country," Bush said after Congress gave
final approval to measure. "This bill comes at a critical time,
as commercial construction is at a six-year low."
UK's
recovery hopes dashed
Hopes of a recovery within Britain's
struggling manufacturing sector have been dashed, Britain's
leading business grouping said recently.
In its latest Industrial Trends
survey, the Confederation of British Industry (CBI) said manufacturing
confidence fell in October for the first time since January,
prompting firms to cut both investment and Jobs. "Hopes that
manufacturing is on the brink of recovery have been dashed by
another decline in orders and output," the CBI said.
Australia
to lead industrial tariff reform
Australia pledged champion the
cuase of developing countries in global trade deliberations
over tariff reform for industrial goods.
A spokeswoman for Trade Minister
Mark Vaile said Australia, which will submit its tariff reform
proposal to the World Trade Organisation (WTO) in February,
favoured special treatment to protect developing nations.
"We will have an aggressive proposal
in terms of developing nations, as we've done in agriculture,
as we did in medicines. Developing nations will be important
an we will continue to put them forward," the spokeswoman said.
She refused to confirm a report
that Australia's submission would call for industrialized countries
to scrap tariffs on manufactured goods by 2010.
The Sydney Morning Herald newspaper
cited unnamed government sources as saying the government would
urge industrialized countries to reduce their tariffs to zero
by 2010, five years earlier than a US plan.
Australian industry groups said
the US strategy presented an unfair situation for Australia,
which has already cut may of its tariffs to below five percent
and would therefore have to cut tariffs to zero before many
other countries.
German
deficit 3.2% this year
The shortfall in German public
finances should come to 3.2 percent of output this eyar, clearly
beyond euro-zone limits, with growth limited to a tepid 0.4
percent the country's six leading economic institutes warned
recently.
The groups, which had previously
predicted growth of 0.9 percent this year, also sharply lowered
their forecast for 2003 to 1.4 percent from 2.4 percent.
As a member of the 12 nation euro
zone Germany is obliged to hold its annual public deficit to
three percent or less of gross domestic product and is supposed
to be moving towards a surplus.
Failure to respect the limit leaves
a euro-zone member liable to financial sanctions imposed by
European Union Finance ministers.
France
expects 3% growth
An economic growth of three percent
is not out of the question, Economy and Finance Minister Francis
Mer of France said recently, warning that "everything depends
on how the events in Iraq evolve". Speaking on French radio
channel Radio Classique. Mer said that it was possible "to imagine
a scenario where everything works out all right, (and) we find
ourselves in the spring with a western world ragaining its dynamism
and its drive".
