Is It Time For A Little Optimism?

The possibility of an upturn in the economy has been difficult to predict in recent years as bad news dominates the headlines. In recent months, however, there appears to be a glimmer of hope as news of investment and jobs return. On the world stage, from where we take our lead, there are signs of modest growth and falls in unemployment.

The more advanced economies such as the United States, United Kingdom and Germany are beginning to see some positive signs after many years of consolidation.

The emerging economies of China and Asia and a range of countries in Latin America continue to enjoy relatively healthy growth; which barring a major disaster should continue.

The main economic challenges include the effects of austerity measures taken in many countries, particularly in the European Union, and the lingering high levels of unemployment and personal debt.

Similarly, unacceptably high levels of youth employment and a growing gap between those in well-paid secure jobs and those in low-paid insecure jobs will continue to stifle growth in many economies.

To manage a way through the difficulties governments have to develop plans for sustainable growth in a way that builds prosperity and competitiveness over the long term.

The boom and bust policies of recent decades must be avoided, as the lessons learned and experience gained help create new behaviours and economic rules of engagement.

As growth returns and economies improve governments must carry out structural reforms to reduce the size and influence of the state to rebalance the economy.

The reforms will need to be undertaken regardless of what government is in power or the level of growth or jobs created.

It has been a long and difficult journey for people and businesses and although there is a glimmer of optimism it comes with a new reality of austerity and modest growth.

SO, the world has changed and we face a new future and a new reality but within the new landscape there is cause for optimism.