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Can the world be any closer to the cliff of recession? By most indications, prospects have never been bleaker. A dramatic slowdown in Europe. German retail sales dropped almost 2 percent in June. The Confederation of British Industry slashed its growth forecast for British manufacturing. Japan's third recession of the decade, with output dropping at a rate of 3 percent in the second quarter. Massive U.S. job cuts: 19,000 at Lucent Technologies Inc., nearly 11,000 at Hewlett-Packard, 1,200 announced at AOL just last week. Basically EveryCorp U.S.A. Take your pick for worst of the worst.
South Korea, the IMF's new golden child after having repaid its $20 billion bailout loans from the 1998 Asia crisis, looks like a ray of sunshine. But Kim Dae Jung's Korea could soon stumble when it comes to the seemingly simple. Exports are plummeting. Debt levels are rising. And Korea's second-quarter GDP growth slowed to 2.7 percent--its lowest since 1986. It's no better in South America. Argentina got $8 billion in temporary relief from the IMF, but the country's continuing economic crisis yields little hope for Latin America. And Brazil's not of much help either.
And yet. There are some slivers of silver lining. German bankers think their economy may have bottomed out. Business confidence rose in July, according to the latest IFO survey, and last week's GDP numbers are higher than ...
Source: HighBeam Research, Half Empty, Half Full?(World economy)(Brief Article)(Statistical Data...