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

Houston Plastic continues to grow with new press, controlled production area

October 1, 2014 11:32 am ET

Custom injection molder Houston Plastic Products Corp. has extended its clamp tonnage range and added an environmentally controlled molding area.    More

Image

Dow loses appeal in price fixing case

October 1, 2014 11:10 am ET

The Reuters press agency reports that a federal appeals court in Denver has rejected Dow Chemical Co.'s attempt to overturn a $1.06 billion fine...    More

Image

German auto supplier Benecke-Kaliko to build second plant in China

October 1, 2014 10:24 am ET

German auto supplier Benecke-Kaliko AG is set to build its second Chinese facility, in Changzhou, to produce surface materials for automotive...    More

Image

Brown signs California's plastic bag ban into law

September 30, 2014 1:38 pm ET

Gov. Jerry Brown (D) made it official today: plastic bags are banned across the entire state of California.    More

Image

New Hexcel plant will supply carbon fiber for Airbus A350 XWB

September 30, 2014 2:43 pm ET

Hexcel Corp. is investing $250 million on a new carbon fiber plant in France, with part of the production going into the future Airbus SAS A350 XWB.    More

Market Reports

Plastics in Mexico - State of the Industry Report

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

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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

More Events