We all thought, including myself, that our current economic state was developing for the better. But today the IMF (International Monetary Fund) has brought our hopes crashing down. They announced that the previous global economic growth of 4% will decrease down to 3.25%. This slight change will have a dramatic effect on the global markets.
This revised forecast decrease is due to the eurozone still not being sorted out, with countries such as Italy still in financial hardship. The eurozone is sucking these markets down with it and until the eurozone has had dramatic reform and development, these figures will continue to get worse.
In a time where the recent unemployment figures for the UK weren’t as hoped for, there is no reassurance to investors that the UK economic markets are worth investing in. But as the eurozone continues to threaten our markets, growth and trade will not increase any time soon.
But the has been much protest about the way in which the IMF has gone about sorting out the eurozone. Many believe that their approach is trapping poor countries into a life of debt.
Even economic stable countries, such as Germany, has a decrease in economic growth predictions, 0.3% down from 1.3%. This shows how wide spread this economic news is – everyone is affected and it is a problem needing urgent attention.
This is something the Prime Minster, David Cameron, needs to think about. These figures should be a wake up call and we need to employ the ‘bull dog’ approach to the eurozone more often to stop markets from crashing and heading into yet another economic recession.
