ENP Newswire -
Release date- 20022014 - 2013 saw sluggish or non-existent economic growth across the developed world, a rise in the stock markets of developed economies, a fall in the stock markets of emerging economies, recovering trust in the euro zone and base rates close to zero.
These latter factors generated hope that the global economy would start picking up faster in 2014 - something you might expect when reading the headlines in the financial press at the start of the year.
Yet these factors should also promote caution. The stock index levels of developed markets are partially supported by higher cash flows, but on the other hand the real growth of the economy and inflation are close to zero. At the same time, real property prices, which are not taken into account in inflation calculations, continue to rise slowly but surely. On the whole this means that money has reached property prices, but not the consumer. The debt burden of developed economies is still high, and still rising. There is no way of knowing when or how it will be reduced to any significant extent. But it seems that investors have become accustomed to the situation: at least the rates of return in the stressed economies of the euro zone have fallen considerably and they are able to refinance their obligations on the market. This is a sign of a recovery of trust in the euro. The collapse of the monetary union is no longer under discussion. Most countries with an excessive debt burden have reduced their expenses, and this has improved the budgetary situation. However,
2014 could well result in the same situation we found ourselves in a few years ago when our entrepreneurs had to find new foreign markets. So, we need to be dealing more with those newer markets with stronger economic growth engines as well as completely new export destinations. In doing so, we will reduce our dependence on our main export partners. The 2009 experience demonstrated that Estonian exporters are able to respond quickly. Now is the perfect time to act, while the debt burden of our enterprises remains relatively low and at a time when changing global demand offers great opportunities. Consumers everywhere are increasingly seeking small quantities of specific goods. They want high-quality items that look different from those their neighbours have, and they want them fast. This is the moment for
The competitiveness and flexibility of Estonian business and a sound economy give us the chance to look for new markets. Besides, the global economic standstill will make us so in the end anyway. The sooner we think about it, the better. Good luck in looking for new opportunities!
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