Economy

Whereas globalisation during the past 20 years has been a powerful engine of growth, we now experience the downside of the worldwide interlacing of the markets: a global recession. In Europe, North America and Japan - still the centres of world economy - economic output shrinks and in the new booming economies of Asia and Latin America at least the growth rates are shrinking. Europe's economy is by no means separated from the US-economy. This became clear already during the financial crisis that spread quickly from Wall Street to the European banking system. Also China needs the support of the world economy since its growth has been mainly driven by exports to the USA and its gigantic trade surplus has been invested in US government bonds. The same applies for the Indian software industry and the countries depending upon the export of resources - their incomes dropped to rock bottom quickly.