If you’re like me, you’ve certainly wondered why economic growth has been so sluggish after the worst post-war recession — the Great Recession, or Great Financial Crisis as some have callednthe 2007-2009 crisis. Normally, the economy should have surged, after such a deep slump.
Instead, we’re proud of economic growth figures around 2% in Britain and the US and cheer when the eurozone posts a meager GDP advance of above 1% almost a decade after the crisis.
The biggest question that is still unanswered after the 2007-2009 financial crisis is: why has growth been so slow? Compared to previous recessions, both in the US and in Europe, the rebound has felt more like an extension of the crisis rather than like a proper recovery, as in previous cases.
Almost two years ago, economist Andrew Smithers warned that US companies themselves were endangering the recovery. Little has changed since then, but public awareness of the problem is increasing, and with it, hopes that a solution is around the corner.
There’s no easy way to put this: the central banks are like the naked emperor in the well-known story. And the only solution that could save us from the next recession is so politically sensitive that it will not be put into practice.
Indian markets and economy had an interesting fiscal year FY2015 (Apr 2014-Mar 2015). While early signs of recovery are visible — a reversal from the previous turbulent years — a lot is still needed for the promised “achhey din” (good days) to truly arrive.
Hardly a day goes by without a piece of good news and/or upbeat forecasts about the eurozone. Two of the most recent ones deal with positive eurozone earnings revisions and the improved macroeconomic picture.