Die Casting to Continue Contraction in 2009. When the U.S. sneezes, everyone catches a cold. At least in 2008 and for the foreseeable future, the U.S. economy has a significant impact on the rest of the world. However, basic conditions around the world are changing. Globalization is occurring, work time arrangements are becoming similar, consumption, lifestyle and production are all “leveling out” in every sector of the world. The term third-world country is becoming obsolete. World issues such as climate change, migration, income disparity and employee training are being discussed. Now, it is a matter of which countries have the greatest influence in the direction the world economy takes.
World economic growth from 2000 to 2008 averaged +3.8%/year. As a result of the U.S. recession, world economic growth of most economies is forecast to slow in 2009. The overall world economy will grow 3% in 2009. The slowdown is attributed to the housing and financial crisis in the U.S. and shortages in resources around the world. Estimates are that the downward trend will continue through 2009 and halfway through 2010.
The good news is that the surviving companies will be less leveraged, not be as “speculative,” have good internal checks/controls and have sound fiscal policies. These are all good attributes to deal with as suppliers or investors.