2013 Predictions: Global Economy to Stabilize

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After 2010, the global economy continued its downturn and in 2012 it reached its lowest levels since decades. Many countries went into recession, including powers like Japan and a number of the Eurozone members.

However, in 2013 the situation is expected to change for the better and the global economy is finally expected to stabilize. In addition, in 2014, analysts believe that it will even mark a noticeable growth.

Here are some of the economic predictions for 2013.

The U.S. slowly starts to recover

This is already an established fact. Housing in the country is again gaining strength and consumers started to spend more. With interests rates remaining low and increasing housing demand, more people are looking to purchase homes, renovate or upgrade their existing properties, and spend on house appliances and interiors. In general, the economic outlook for the U.S. economy will be even righter once the global economy begins to grow. That is, of course, if the deficit and the fiscal cliff issues are solved, which will most probably happen in the coming months.

Growth in Europe will vary

Next year, there will be something like an economic separation in Europe between the South and the North. Countries in the South will have a hard time getting out of the recession. That is due to the many austerity measures and the high level of unemployment. However, the Central Bank is proposing new measured to tackle debt crisis and market analysts are rather optimistic for the 2013.
The North, which is currently stronger, will be affected by the situation in the South and it will be weakened. Nevertheless, most of the countries in the North and Central Europe are expected to mark a modest growth.

China grows more powerful

After the economic slowdown in 2010, China also experienced some troubles. The country’s growth dropped from more than 10% to 7.5%. However, in 2013 China’s economy will revive with a new force. Increased demand for products across the globe will support stronger export and transportation revenues. Market analysts’ predictions suggest that China will register an 8% economic growth in 2013.

More emerging markets to revive

Many of the tight money policies are no longer valid. That will awake the economies in some emerging countries around the globe. The change will be more evident in Asia.

Commodity prices mark little change

Even though, economic conditions improve with every month, commodity prices continue to remain at the 2011 levels. That will probably continue throughout 2013. Gold and silver remain as top assets in a diversified portfolio, although trading in precious metals is expected to be range bound.

Inflation will be under control

Although the unemployment grows and prices increase, inflation is not likely to skyrocket or cause much trouble. Moreover, in some of the developed countries and especially in regions like the Middle East, Asia and Africa, the inflation will probably decrease.

Economists also predict that the fiscal policy will become even tighter, but the risks threating the world’s economy won’t be that many. In addition, in 2013 the U.S. dollar is expected to perform stronger than the euro due to the faster recovery of the American economy.

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