1 Response to World growth ‘worst for 60 years’

1. Dr. Mulli says:

   February 4, 2009 at 6:56 pm

   In the external business environment, job losses will inevitably lead to a further drop in consumer demand for goods and services. The true danger however, lies in the continuing downward spiral of lower prices chasing dwindling consumers, who in turn chse are chasing ever shrinking job market.

   Economists generally fear deflationary cycles because momentum builds up and becomes difficult to stop or even slow down as other mitigating factors such as waning consumer confidence exacerbated by media reports propel the business environment even further downwards.