There is much discussion on China and the impact of stalling on the global economy, yet the region that really needs to be monitored is Europe and the eurozone.
While China is still growing its economy at a seven- to eight-percent clip and is tops among the G8 countries in the global economy, Europe continues to look for any reason for optimism given its recession and the fact that six of the 17 eurozone countries are in a recession. Greece, for instance, reported a horrific unemployment rate of 26.8% in March, while to the West, the Spaniards are facing unemployment of 26.7%.
The Organization for Economic Cooperation and Development (OECD), in its semi-annual Economic Outlook, suggested the dire situation in Europe is a threat to the global economy. (Source: "Global economy advancing but pace of recovery varies, says OECD Economic Outlook," OECD web site, May 29, 2013, accessed June 7, 2013.)
Continue Reading: Why ECB's President Mario Draghi Is Unrealistic