Spillover Effects: Word from the Latest Global Economic Outlook

Economy.com's latest global economic outlook report shows a few bright spots, but mostly points to lackluster economic performance for most countries around the world. One interesting observation is that the driving nations on most continents are clearly having serious negative "spillover effects" on growth on more dependent (or closely-linked) countries. The Netherlands economy is experiencing this phenomenon because of its ties to the German economy. Mexico is experiencing the same thing because of its ties to the U.S. economy.

The strong euro is clearly hampering growth throughout most of Europe.

These issues speak to two issues that local economic developers everywhere should bear in mind: 1) the global economic network is very complex and very strong in its influence on future economic growth prospects; and 2) macroeconomic factors (exchange rates, etc.) are likely to be even more influential in shaping future growth prospects of various nations and industries.

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