World economy ends the year in fragile state

The global economy is ending the year in a fragile state with factory activity shrinking in China, eurozone business growth remaining weak, and emerging market giant Russia in a spiralling currency crisis.

“These are uncertain times again and there is a risk of another global downturn,” said Stephen Webster, chief European economist at 4CAST.

Poor to mediocre business surveys in Asia and Europe released yesterday are likely to put pressure on both the ECB and People’s Bank of China to come up with more stimulus. They also threaten the 2015 outlook given the two economies’ huge global reach.