Resources
The world
The challenge for the world in 2006 is to take advantage of a welter of opportunities thrown up by globalisation and change, while escaping a similarly large number of risks through sound policy making. That will not be easy. - -
Content
Political threats likely to eclipse economic risk
There are many causes for concern over the global economy this year but experts are confident that the world can weather them. Foreign affairs are another matter.
Globalisation: Integration marches onward
The political and policy environment is benign – for now.
Deficits: Expecting to escape a disorderly correction
The outlook may be benign but there are many potential triggers for a global slowdown and a halting of foreigners’ willingness to finance US deficits.
New Fed chief keeps inflation focus
Ben Bernanke takes over from Alan Greenspan at a delicate time.
Europe: Prospects grow for return of optimism
Cautious consumers might be ready to play their part in a long-awaited recovery.
China: West’s nemesis has its own demons
In reality, the world’s most populous nation has played a canny game of listening to foreign critics.
Oil: Rocketing price is not shock it used to be
The global economy is more resilient to high energy costs – for now
Global trade: Outlook for agreements nears moment of truth
If the Doha round of talks fails, bilateral deals and regionalism will emerge as victors. And that will carry a cost.
Financial markets: Spread of derivatives reshapes markets
The markets start this year in good health, largely, after passing a number of stern tests.
Offshoring: Relentlessly jumping up the skills chain
Developed nations such as the US and the UK are being forced to look at their attractiveness.
