Leading indicators now suggest that the global recession is coming to an end and the world economy is on the road to a policy-induced recovery. “The OECD’s composite leading indicators signal that the worst is over,” Tu Packard said in the global outlook report released Friday by Moody’s Economy.com, the research unit of Moody’s Corporation, which is independent of Moody’s Investors Service. The OECD refers to the Organization for Economic Cooperation and Development. Packard said he saw significant improvement in the world economic map in July, as compared with that in January. Ample liquidity provided by central banks has helped stabilize the financial markets and credit conditions and bank liquidity has been improving, he said. In Asia, China and India are again picking up growth momentum and are the first to recover from the impacts of the global financial turmoil and economic slowdown. Indonesia and Bangladesh are still members of the expanding growth club. Turkey and South Korea, which enjoyed broad-based growth in the second quarter, are projected to have an early recovery. South Korea and other industrialized Asian economies are also benefiting from a strong recovery in the electronics industry. But Japan remains in the slowdown phase, still troubled with high unemployment and massive overcapacity in manufacturing. Read more
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