Signs have become apparent of a weakening of economies in England, America, Brazil and China. Conversely, economies in the Euro Zone are showing signs of strengthening. According to the OECD indicator though, the drop for the US was only slight, from 99.6 in April to 99.5 in July. In Europe however, it stayed stagnant for the third consecutive month at 100.7. There was a slight drop in the UK from 100.00 to 99.8. Japan’s index also remained stable.
Perhaps it is therefore not surprising that the red carpet was pulled out for the visit of China’s Premier, Li Keqiant who said that “China and Europe should expand mutual investment and even make joint investments.” What is helpful for this endeavor is the establishment of the AIIB.
Further, without pro-activity, the US economy could be headed for substantial downfall. The economy contracted by almost 1 percent according to the revised IMF outlook, and for the first time since 2006 there was a decline for two quarters in US productivity. Plus, the reality is, a staggering 37.1 percent of Americans are jobless.
America needs to act fast if its economic downfall is to turn around.