World Economic Outlook As Of April 2010

According to a report released in April 2010 by the International Monetary Fund here are some global considerations and expectations.

The recovery is stronger than expected but the speed of the recovery will vary
Financial conditions are easing in some sectors

Capital is flowing into emerging economies
Inflation pressures have lessened but they may still rear their ugly head
The global demand is leveling out and we are starting to see a rebalancing taking place

These are wonderful facts to know but how does this help us with our money?  How will knowing this help us with our money?

The direct effect will not be easily seen over the next few weeks but the recovery is certainly noticeable.  Just walk into any supermarket and look at what is loaded in someone’s wagon and you will see that people are spending money on items that for a while they were holding back from.  As an example consumers were only spending money on items that they had to have in an effort to preserve cash.

It is no different in a department store, a car dealership, a furniture store, etc. people are starting to spend money.  The difference this time is that two years ago the average consumer was very comfortable; they were on top of the world, never expecting the economy to do what it did.

Go back five years ago if you had told someone that the real estate market was going to lose 10%, 20%, 30% even 50% from the highs and people would have thought you were crazy and they would need to have you committed.

Bottom line, things are getting better BUT many economists are waiting for the other shoe to drop.  In the United States the other shoe is the commercial real estate market.  Are they correct?  Will it drop?  I don’t have a magic ball but all roads seem to point to the commercial real estate market weakening but how much is anyone’s guess.

Strategy Based Profits TIP: – Keep saving for that rainy day, it may not be that far away!

Robert J. Roy
Money Man

  • Jay Panis

    Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

    • admin

      Thanks Jay I appreciate it.

      Rob

  • Val Milton

    Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.