CBS Investment

According to the press release of Ministry of Economy of Germany the German Federal Government has predicted a reduction of real GDP by an average of 6%, in its spring forecasts for the current year and expects its growth by 0.5% in 2010.

“The economic recession, which is expected in the current year, for the most part, is a consequence of massive disruption in the global economy and the consequent drastic reduction in our exports,” – quotes a leading paper from the speech of Minister of Economics and Technology of Germany Karl-Theodor zu Gutenberg at the meeting of the Cabinet of Ministers.

According to him, the two existing government programs to improve conditions allow Germany in a national scale “to survive better” compared with other countries. In this regard, zu Gutenberg sees no benefit in taking the third market program, as called for by some politicians and experts.

For the first time in a long time, the balance of the world economy tends towards the East. Analytical Center of Economics and Business (CEBR), located in London, believes that even as early as in 2008, the total weight of the United States, Canada and Europe in the global GDP was less than half (49.4%), and three years will fall to 45%.

Not so long ago the figure was about 60%. As “RBC daily” writes, the first time since the beginning of the industrial revolution in the XIX Old and New Light will yield the palm to developing countries led by China.

70% of China’s savings are available in U.S. Treasury bonds and dollars – the crisis currency, which at the first germ of stability has a chance to fall, rather deep, given how fast it is printed. If the Chinese decide that the time has come to sell, inevitable tectonic shifts will happen in the world economy.

The Minister of Finance of the United States arrived in China. Economies of the two countries are so tightly linked to each other that any wrong movement can lead to the collapse. Head of Finance of the U.S. came to persuade Chinese colleagues not to do sudden movements.

“A successful transition to a more balanced world economy will require significant advances in the world. But the most important changes must occur in China and the United States. The welfare of the rest of the world will depend on our success. And the effectiveness of U.S. policy in part will depend on China,” – said Gaytner.

The drop in housing values in the 20 largest U.S. cities in March exceeded forecasts. According to the index S & P / Case-Shiller, the decline in the prices became 18.7% compared with that of March 2008. Analysts of the agency Bloomberg predicted reduction index of home prices to an average of 18.3%. Prices have decreased greatly especially in Phoenix, Las Vegas and San Francisco. Experts note that a record number of deprivations of property rights contributes to a fall in housing prices and makes it more accessible. In this regard, the rate of sales decline is slowing, and perhaps it will eventually stabilize, experts add.