The US bank Morgan Stanley has worsened the forecast for the world GDP growth: in 2011 it will go down from 4.2% to 3.9% and in the future from 4.5% to 3.8%. The bank states that the USA and Europe are close to recession.
The bank also blames Europe for political mistakes and the Old World’s inadequate response to the sovereign debt crisis.
Switzerland has already responded to the economic instability: the economy is suffering from the strengthened Swiss franc. The strengthening was the result of investors’ activities who began to invest in gold, the Japanese yen and the Swiss franc. Now authorities decided to allocate 740mln Euro to support companies working in exports and tourism. At the same time, the Central Bank intends to increase the volume of francs offered to the markets.
Meanwhile, the main problem of the Euro zone is shifting to Germany whose economy has frozen. Many experts say that this is not ordinary stagnation, the situation is getting incessantly worse. In fact, this puts an end to the role of Germany as a locomotive pulling the weak links of the Euro zone out of a ditch. (more)