Worldwide Economic Recovery – Weaker than Normal but Continuing

News for the U.S. economic outlook continues to be positive–housing recovery, continued productivity increases, new oil reserves. However, the economic news from around the world is frequently negative. Growth around the world has slowed. Many predictions are for relatively slow growth in a number of economies, although in the case of China its’ slower growth rate (projected in excess of 8 percent) would be considered outstanding in the U.S.

After the temporary loss of approximately $15 Trillion of assets during the Great Recession, a lot of people in the U.S. have become very nervous over any news of economic downturns. However, the consensus is that neither the U.S. nor the rest of the world is headed for a new recession. Although the worldwide economic recovery is mixed—with lots of opportunities for quasi-sensational headlines, most knowledgeable economists see a slow recovery—not a major recession.

What Does This Mean for REALTORS®? To the degree that clients express concern about the sometimes sensational focus on world economic problems and the potential impacts on the U.S., one could note that currently available information shows an economic outlook that continues to be positive. At this time, the economy continues to be on an upward trajectory. The recovery is weak worldwide—and in the Eurozone clearly disappointing. However, the expectations are that the recovery will expand.

Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

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