The EIU’s recent review of financial market turbulence is a useful analysis of what economic climate we can look forward to over the coming couple of years. Heading For The Rocks analyses the global economy and offers three scenarios for the future. Whether or not you subscribe to their analysis it presents most of the pertinent issues and ascribes estimated impacts and probabilities to them. Some observations paint the picture in a few phrases:
The past decade has seen a housing boom across much of the developed and emerging world. The total value of residential property in developed economies rose by around three-quarters between 2000 and 2006, to almost US$75trn. This was equivalent to more than these economies’ national income over the period.
Now is as good a time as any to review the outlook.