Downtrend still persists in global economy as a whole. This has forced the experts to forecast that complete recovery in the economy is still not anywhere near and it may in fact take a long time. Meanwhile, the economy has to face the challenges and it is only by resolving them that further improvements can be ascertained. The experts have forecast a gloomy economy for many countries with industrial activities not so encouraging.
According to the financial experts, the economic circumstances in many European countries are still worrisome. Most of the nation in this region is suffering from high debts and the situation has not improved significantly despite all out efforts. This has created worsening circumstances in many other countries as well. Financial activities in the developing and developed countries have suffered a lot due to persisting Euro zone crisis.
Unemployment rate has been up in many parts of the world and this has been cited as the chief reason for the global economy suffering for so many years. The experts are of the opinion that one of the reasons for worsening unemployment situation is that banks and households are not spending much and this has restricted cash flow in the market. The cash flow has been well below than expectation. Moreover, public debts also have been increasing and have worsened the financial sector further. The policy makers in the government must do all that they can ensure to strengthening of financial sector. To stimulate the global economy, the governments should take steps to initiate new financial strategies and avoid fiscal austerity. The governments must make renewed efforts to create more jobs so that the people can spend more money in the market to start a cycle of improvement in the economy. Certainly, a lot has to be done for improvement of the economy in many countries.
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