Following the economic downturn caused by the global financial crisis, most economies have focused on increasing exports in an effort to reduce the widening trade deficits. This has been no easy fit however, with global demand weakening on the back of a less than impressive world economic outlook as indicated by forecasts from the Bretton Woods Institutions. In fact, the European Commission forecast a 3% decline in economic activity, with the 17 member Eurozone bloc`s economy expected to contract by 0, 4% this year and stagnate in 2013. Domestic demand in the Eurozone continues to be muted by the belt-tightening austerity measures currently being implemented in most of the Eurozone bloc, meant to maintain a balanced budget. However, since the onset of the Global Financial Crisis in the last quarter of 2007, China has continued to be the major driver of the global economy, with the world`s second largest economy growing at an average of 10 % a year for the past 3 decades. Noneth...
Economics, Business and Finance