During 2013 it became apparent that there was slight improvement in the global economy. You can see the evidence for this in Figure 1. The growth rate in the USA has increased, partly because of an improvement in the property market. The UK and G7 countries overall have also shown some improvement. Elsewhere, growth in China has been robust, as you can see in Figure 2. India has maintained a positive growth rate but has been affected by the slowdown in the global economy.
In contrast, Figure 1 shows that the eurozone has been slower to improve. There has been concern about the banking crisis in Cyprus as well as the risks of further bailouts. This raises the question of why the recovery in Europe is taking so long and whether the fundamentals are really different from the USA, where a recovery is now well underway.
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