Davos Review: Global Economic Outlook

With the annual meeting of the 45th World Economic Forum — commonly known as Davos — having ended this weekend, here is a global roundup of how the gathering was perceived. Among the top issues: Global inequality, European unity, U.S. economic growth, and more:

The Economist: “The theme of inequality has loomed large in recent years for delegates of the World Economic Forum’s annual meeting in Davos. This year’s gathering of plutocrats is no different, thanks in part to a much-publicised forecast from Oxfam, a charity, that the world’s wealthiest 1% will soon hold more net wealth than the other 99% put together.”

Xinhua News Agency: “…World leaders are still scrambling to find ways to stimulate economic growth. Discussions at the forum here during the last few days suggested that the global economy is facing strong headwinds of unemployment, geopolitical risk, low investment and slow progression of structural reforms.”

The Wall St. Journal spoke with former U.S. Treasury Secretary Lawrence Summers, who, according to the piece feels that the “U.S. economy still faces serious challenges in restoring robust long-term growth despite the recent pickup in economic activity.” The piece continues: “Ultralow interest rates demonstrate the chronic weakness of demand, he said, and reflect an excess of savings over investment. ‘What is striking is how much [medium-term interest rates] have fallen,’ Mr. Summers added. The drop in medium-term interest rates signals that ‘this phenomenon of a chronic increase of excess savings over investment will be a real one.’”

USA Today: “German Chancellor Angela Merkel calmly took the stage midweek and spoke in vague and measured tones about European unity while offstage the entire European financial community waited with bated breath for the European Central Bank to make a decision on monetary stimulus. In a model of German efficiency, Merkel stepped offstage at precisely the moment the ECB announced it would purchase 60 billion euros in bonds every month — the plan amounts to about $1.3 trillion in total — to ward off inflation and kick-start growth across the 19 nations that share the euro currency.”

Deutsche Welle offers a video roundup:

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