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 Topics, Regions, United States, Government & Legislation, Financial

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

Large part molder EnviroTech in 'growth mode,' adds space, equipment

November 26, 2014 9:54 am ET

Salt Lake City-based EnviroTech Molded Products Inc. is adding new equipment and expanding its factory as it gains business in some of its...    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Thanksgiving balloons — yep, they're plastic

November 26, 2014 1:59 pm ET

As you sit in front of the TV on Thanksgiving morning and watch the parade, keep this in mind —— plastics make it possible. I'm talking...    More

Image

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Image

Plastics News by the year: 1992

November 26, 2014 6:00 am ET

As Plastics News marks its 25th year of publication, we take a year-by-year look back at some of the events, people and curious coincidences that have...    More

Market Reports

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

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events