Economists across Europe and the world believe the odds of a double-dip recession hitting the western world are increasing and that the pressure is now on for strong and decisive leadership.
The risk of a double-dip recession was said to be almost 50% now, according to Economist Professor Nouriel Roubini in the Financial Times earlier this week.
Pessimism has been abound that the current quarter of 2011 will show less growth and poorer results worldwide than the previous quarter, as countries begin to realise that the recovery from the recession of 2008 is going to be harder than previously thought.
With today’s new figures revealing the French economy showing zero growth for the last quarter, news earlier in the week showing German exports falling and the US seeing poor spending and losing its AAA rating, countries are now having to consider measures such as quantitative easing.
Removing muddled strategy, at the expense of slower short-term growth, and implementing more robust long-term plans could turn out to be crucial to avoid another damaging recession.
Whatever economic policies are chosen around the world, decisive leadership and long-term progressive policy is sure to be a necessity to steady the waters.