Global economic scene in 2014 – Pessimists feel optimistic about the economy

As we prepare to step into 2014, every consumer is concerned about his personal financial condition. What about the position of the global economy in 2014? This is a perennial question among the analysts, the investment bankers and the industry experts. Reports and studies suggest that the world economic scene is yet again evolving with stronger potential of growth in the US, UK and China as they emerge as strong market forces. On the whole, different countries will see positive growth and a few others might not be subject to extreme positive growth. Read on the concerns of this article to know what the New Year holds for some of the economic superpowers throughout the globe.

Europe – Slow but steady growth throughout 2014

When the euro was born, the key birth failure was to address the need for pan-European banking supervision rather than lack of fiscal policy. The fiscal policies from Louisiana to Illinois and from South Carolina to California couldn’t have been more different, with very little negative impact on the currency of the European Union. As the sovereign debt crisis has always been at the heart of the European financial deadlock, this will remain as one of the main concerns even in the New Year. Countries like Spain, Italy, Greece and Portugal will be benefited by the convergence of the sovereign debt crisis. There are many national banks that became over-exposed during the sovereign debt crisis and this will probably take a better turn in 2014.

China – Hits the point of diminishing returns

China has always been a center of power for decades but now after embracing decades of leadership in market forces; China is slowly all set for a downfall in 2014. The state-run infrastructure spending model that was the driving force behind the rapid modernization and high growth will gradually reach a point of diminishing returns. China seems to have come to terms with this view and thereby seeks a more domestic-oriented model of growth. Consumers and business organizations get more flexibility, market reforms are encouraged and financial interactions have become freer with the rest of the world. In short, China is trying its best to revitalize its lost fervor.

USA – The next superpower of the globe

When it comes to the United States of America, they’re all set to suspend its programs of purchasing assets, known as Quantitative Easing during 2014. This will be one of the most positive developments for the US economy. The end of Quantitative Easing will come with an optimistic view of the US economy as opposed to the requirement of QE, which was justified saying that the US economy was too sick for any kind of financial measures. A resurging housing market, falling credit card debt, spark of jobs throughout the nation and household balance sheets, will drive the US economy towards an optimistic outlook.

While the US financial drag is diminishing, the once-upon-a-time-superpower China will gradually lose its shine and Europe, on the other hand will move slowly towards economic growth. Different countries will come up with different results and hence will add to make a better global financial growth in the year 2014.