In his article on the British economy, Ian Stewart suggests that Britain may beturning the corner. He notes that the consumer sector and the corporate sectorhave both shown unexpected strength. Ian notes that an aggressive monetary policy has provided the uel or consumer wealth, consumer spending, and bettercredit market conditions. On the other hand, he says that the economy continuesto ace substantial headwinds rom global weakness, tight scal policy, and globalnancial market volatility.In her article on India, Rumki Majumdar says that, while the old challenges toIndia’s economy continue, new challenges are emerging. Te end result is that theoutlook or growth is not good. Among the challenges are uncomortably highination, a big budget decit, a large external decit, and capital ight, whichresulted rom actions by the Federal Reserve in the United States. Capital ighthas contributed to currency depreciation, exacerbating ination and constrictingthe ability o the central bank to ease policy.In our next article, Akrur Barua provides a discussion about the Russian econ-omy. He notes that the main strength o the Russian economy has come rom the consumer sector.Increasing wages and consumer willingness to borrow have ueled spending growth. However, highination has led the central bank to tighten lending conditions. Moreover, muted global demand orcommodities has had an adverse eect on growth. Te outlook, thereore, remains uncertain.Finally, Navya Kumar looks at the Brazilian economy, which is struggling to grow. Te rapid shirom strong to weak growth has certainly taken a toll in terms o popular discontent. Mass demon-strations reect rustration with poor inrastructure, corruption, and inefciency. Sadly, the outlook is hampered by high ination, weak overseas demand, and volatile and interventionist public poli-cies that have hampered business investment.
Dr. Ira KalishChie Global Economist oDeloitte Touch Tohmatsu Limited
Global Economic Outlook
published quarterly byDeloitte ResearchEditor-in-chief
Dr. Ira Kalish
Dr. Patricia BuckleyDr. Alexander BörschIan StewartDr. Rumki MajumdarAkrur BaruaNavya Kumar
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