The world copies Japan’s economic meltdown
It feels like the world economy has found itself in Japan-style downtime, as some financial analysts state. Apparently, economic activity throughout the world keeps deflating, showing undershoots in both inflation and growth.
The given shortfalls resemble Japan’s well-known difficulties, faced by this Asian country in the 1990s. Indeed, we observe lots of Japan-style economic problems literally everywhere. For instance, these dropping bank stock prices, low bond profits, not to mention deleveraging.
Apart from that, both the US and Great Britain demonstrated a relatively low growth dymanics since the world financial meltdown of 2007-2008. This year both economies seem to be growing by approximately 2.6% and 2.2% respectively, as the IMF states.
This year, a couple of financial institutions have already warned of growing risks to the world economy, that’s seen currently expanding by about 3.4%.
Furthermore, the overall probability of a world meltdown within the next year has been hiked to approximately 30% from 20%, and the IMF requested governments to take adequate measures to withstand rising economic threats.