Columbia International Affairs Online: Working Papers

CIAO DATE: 07/2013

The global economy: Healing or still hurting?

Leo Abruzzese

June 2013

Economist Intelligence Unit

Abstract

*After a series of setbacks, the global economy is slowly mending

*US economy is strengthening; star performer

*Jobs market is on a modest upswing

*Housing is bouncing back

*China is recovering from a slowdown

*Boom years are over, but so is the slump

*European debt crisis is stabilising...

*...but austerity is killing the economy

*Euro zone remains big drag on global growth

*Japan is showing signs of recovery under a new government

*Central banks are supporting the bounce back in a big way

*Don't expect a brisk recovery, though; many risks remains

*Debt levels still high; asset prices are volatile; tensions in Middle East, China, Korea