Zurich’s Economic Outlook: A weak recovery ahead?

Zurich, August 11, 2009 – Zurich Financial Services Group’s (Zurich) latest issue of the Economic Outlook* highlights the following topics:

The Global Economy: A weak recovery ahead?

• Leading indicators for major economies seem to have passed the lower inflection point.
• Strongest impulses come from emerging economies, in particular from China and India.
• The United States seem to lead the recovery among advanced economies, rather moderate growth is expected in Euroland.
• Prospects for Latin America, Central and Eastern Europe foresee only a moderate upward correction.
• Concerns about the health of the global banking system continue; further impairments will require continued deleveraging.
• The main risks to the outlook such as high unemployment rates, rising corporate bankruptcies and high government debt levels are unchanged and continue to be stacked on the downside.
• An increasing risk is also inflation; the current fiscal and monetary policy mix pursued around the world is inconsistent with the goal of price stability.
  
  

The current issue of Zurich’s Economic Outlook and previously published reports can be downloaded from the following link: http://www.zurich.com/main/insight/perspective/economic-outlook/economic-outlook.htm

About Zurich’s Economic Outlook

Daniel M. Hofmann, Zurich Group's Chief Economist, prepares the Economic Outlook, about once every two months. The Economic Outlook gives an overview of the global economy and presents macroeconomic data that Zurich has compiled on economic activity and trends, and presents the Chief Economist's view on those data and his view on the economic outlook for the future.

* Available only in English