The time is ripe for the investors to remain alert on the global economic scenario. While the prices of core commodities like crude oil and iron ore (which is used in steel) have hit 5-year low, nine out of 10 largest economies of the world are going through recession or low growth with falling inflation. The biggest worry is that these top 9 countries alone account for 42% of global GDP. The US, which accounts for about 22% of global GDP in 2013, is alone showing signs of strong improvements in its economy.

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China, the second largest economy in the world, struggles to maintain 7% growth. It's consumer inflation in November eased to a 5-year low of 1.4%. China's factory output grew slower-than-expected at 7.2% in November as against 7.7% in October. Investment expansion slipped near 13-year low.

Japan, the third largest economy has fallen into "technical recession" in September quarter. In June quarter its economy contracted 7.3% and further shrank 1.9% in the September quarter. Japan's real inflation falls below 1%. Its 2-year bond yield dropped to "minus 0.005%" in November-end and 5-year bond yields touch a record low of 0.095%!

The 18-member euro (which includes 4th to 6th and also 9th largest economies ie., Germany, France, the UK and Italy respectively of the world) accounting for about 1/5th of global GDP, posted mere 0.8% yoy GDP growth in September quarter. Euro zone inflation falls to 0.3% in November and the European Central Bank has kept its overnight deposit rate at "negative" 0.20%!

Brazil, the 7th largest economy, fell into recession for the first time in last 5 years during the first half of 2014. Of course, it exited the recession in 3rd quarter, but the growth was mere 0.1%.

Russian economy, which is 8th largest in the world, has seen its currency crashing 38% since January 2014. Due to sanctions by the west and oil price crash, the Russian economy is expected to enter recession next year with 0.8% contraction in its GDP.

India, 10th in size, has reported 4.2% yoy fall in Index of Industrial Production for October which is the sharpest correction in the last 3 years.

Despite massive stimulus packages across the world ever since the world has gone through pain post-Lehman crisis, several major economies are going through recession or significant growth slowdown with very low inflation. When an over-weight person loses weight, it is appreciated. However, if the same person loses his weight much below the minimum norm, then the fear could emerge as to whether there is a symptom of tuberculosis! The crash in commodity prices and low economic growth and hence, inflation approaching near zero in many countries make us wonder whether any such symptom has inflicted the world economy.

Of course, it is too early to fear, but investors of the Indian equities need to remain alerted. Any evolution of such symptom can have serious impact on the Indian economy and equities as today India's linkages (in terms of remittances, inflows from the FIIs/FDIs, etc) with the rest of the world are much stronger than what it was about 10 years ago.