Economy improving; caution still prudent

By Angie DeRosa
Conference Director

Published: February 1, 2013 2:43 pm ET
Updated: February 1, 2013 3:00 pm ET

Rich Williams cartoon

Image By: Rich Williams

Related to this story

Topics Regions Topics Financial Government & Legislation United States
Companies & Associations

Last month, heads of nations convened in Davos-Klosters, Switzerland, for the annual World Economic Forum. The media overwhelmingly reported a sense of calm in the mountain resort town and in markets in general.

The world economy, it seems, has experienced the worst, but is fragile and gingerly making a comeback. For this year, the eurozone is expected to see a decline in gross domestic product, while emerging markets will see 5 percent growth and China will see better than 8 percent growth.

But risks of relapse and complacency lead Christine LaGarde, managing director of the International Monetary Fund, to encourage the "do not relax" principle. "Tools that are in the toolbox have to be operational," she remarked during a panel discussion on the ways in which nations have to steer monetary and fiscal policies.

For example, the United States has seen growth pick up and it is continuing to move at a reasonable pace. In the third quarter of 2012, U.S. GDP expanded 3.1 percent compared with the second quarter's 1.3 percent. But, as evidenced by GDP contracting 0.1 percent in the fourth quarter — the first time in three years — the United States has to be savvy with medium-term decisions on its debt trajectory, for example, to guide it through its fragile state.

Emerging markets will have to rebalance their business models to gear for more domestic consumption and less reliance on exports.

A more aggressive approach has been taken by Japan, where officials issued a statement Jan. 22 on overcoming deflation and achieving sustainable economic growth. Its three-prong approach includes bold monetary and flexible fiscal policies with an eye on revitalized economic growth. Those revitalization efforts include concentrating resources on R&D, strengthening the country's foundation for innovation, carrying out bold regulatory and institutional reforms and making better use of the tax system.

If you weren't able to catch any of the coverage from the WEF, it's worth trying to do some catch-up. At this website, weforum.org/events/world-economic-forum-annual-meeting-2013, you can check out all that is available including podcasts, blogs and videos. Separately, be sure to check out the Technology Pioneers, those companies identified as such for the WEF.

DeRosa is Plastics News' Akron, Ohio-based conference producer.


Comments

Economy improving; caution still prudent

By Angie DeRosa
Conference Director

Published: February 1, 2013 2:43 pm ET
Updated: February 1, 2013 3:00 pm ET

Post Your Comments


Back to story


More stories

Image

Haitian builds system for Renault's new China auto assembly plant

April 24, 2015 11:10 am ET

A late-comer to the world's largest auto market, French carmaker Renault SA is currently building its first factory in China.    More

Image

Wittmann Battenfeld betting on big for future sales

April 24, 2015 12:34 pm ET

Five hundred visitors packed into MacroPower Days, about twice as many as Wittmann Battenfeld GmbH officials initially expected — proof, they...    More

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

California may require more recycled content in bottles

April 24, 2015 11:16 am ET

California lawmakers are considering a pair of bills that would bump up the required recycled content in plastic bottles for beverage companies to...    More

Image

Paulson increasing its training offerings, opening Florida tech center

April 24, 2015 10:55 am ET

Paulson Training Programs Inc. is boosting its efforts to help the plastics industry find more skilled workers, entering an educational alliance, buil...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events