The following is excerpted from a 25 April 2013 commentary by Peter G. Hall of Export Development Canada.
It’s race day, and the top cars in the world are lined up. Normally psyched up, this time the drivers are very nervous. They remember the big crash of 2008 that wiped out the 2009 season. Etched on their minds is also the accident-plagued reboot to the program in 2010. And the repeated aborted restart in 2011. 2012 was more of the same. So their jitters about this race day are justified. Are these drivers – the economic powerhouses of the world – in for yet another disappointment, or is this time different?
Jitters about the economy’s near-term future shroud the planet. Confidence indicators for the largest economies are stuck in deep mud, stoking fears of a self-fulfilling slump. The latest data aren’t helping. But quietly, amid the gloom, there’s a different story. Lending activity is beginning to improve. Bond market spreads, even in precarious markets, are narrowing. There’s even evidence of ‘fright fatigue’ – a sign of confidence that the periodic crashes have been well-managed. And perhaps quietest of all, time has brought healing. Pent-up demand is now showing up in key indicators.
This commentary is available in its entirety at:
http://www.edc.ca/EN/Knowledge-Centre/Subscriptions/Weekly-Commentary/Pages/gearing-up-for-growth.aspx
Topic(s)
International Trade and Border Management
Information source
Canadian News Channel
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