Group of 20 leaders pledged over the last weekend to do everything possible that will help in boosting the global recovery. The latest descent is Japan entering into the recession and how elusive their goal is going to be.
Been less than 24 hours after the head of state gathered in Brisbane, Australia, and agreed to take measures that would boost their economies by a round-about amount of $2 trillion by 2015. The Cabinet Office of Japan delivered this news in Tokyo that Japan’s GDP has unexpectedly gone on a toll by 1.6 percent annually in the last three months through September, after the second straight contraction.
Disappointment is being a routine for the global economy, with the International Monetary Fund last month cutting its 2014 world-growth outlook for the sixth time since January 2013. There is a lot of pressure on the policy makers including the European Central Bank President Mario Draghi who has already been pushing his limits of monetary stimulus and government that are reluctant to spend even a single penny.
According to the Chief Economist for Mizuho Securities USA Inc, Steven Ricchiuto, “there has been a misreading of the strength of these economies by the people.” He also said that there is a need of proper fiscal policies and nowhere in the world are we applying proper fiscal policies.
International Monetary Fund‘s last month estimate for global expansion was 3.3 percent, and for this year, it is 3.6 percent. The institution, whose next World Economic Outlook update next comes in January, previously agreed to make similar cuts to forecasts for 2012 and 2013 growth as incoming data trailed expectations to a higher scale.
