The global economy shrouded in the haze

The global economy is slowly moving into turbulence and further uncertainty. There are too many interesting events that continue to unfold, making it difficult to make reasonable predictions. Europeans are furious about austerity policies; China is doing its utmost to combat inflation; and Japan has its own troubles - both by earthquakes and long-term poor growth; the United States has no ability to escape from its financial and real estate market problems; The growth of other developing economies also presents uncertainty and imbalances.

The global economic outlook seems to be shrouded in a cloud, and even experts in key economic positions such as North and South America, Europe or Asia do not know how the situation in the next few years will evolve. If you still insist on the idea that the demand and supply of electronic components and equipment will not be frustrated by factors other than the industry, and therefore do not pay close attention to economic news, then please listen to other opinions.

The fact is that the global economic situation is rarely truly calm. Germany does not seem to have big problems yet, but it must help Greece, Ireland and Spain get out of trouble. In the Middle East, there are still several wars currently underway, and civil strife has continued to have a major impact on the local area, and it has damaged and hindered local trade and commercial activities.

The global economic downturn has brought significant effects on the stock market and commodity prices. The continuous decline in crude oil prices shows that investors believe that future demand will weaken. Last week, after the International Energy Agency (IEA) and the U.S. government decided to release emergency oil reserves, a report pointed out that oil prices have fallen to "below 90 dollars per barrel, a drop of more than 5%." The International Energy Agency expressed its concern about "the economic weakness in the United States and Europe."

During this period, even the US Federal Open Market Committee (FOMC) was concerned that the global economy was still in an incomplete mode of recovery. An iMarketNews. The report released by com pointed out that Ben Bernanke, chairman of the Federal Reserve Bank of the United States, commented on a conference call after the FOMC released its decision to review and decide on the 0-0.25% federal funds rate, and declared that it is currently "is trapped in the economy." "(Confused by the economy).

The information obtained by the FOMC in its April meeting showed that despite the slower pace of global economic recovery than expected by the FOMC, it has continued to progress slowly. At the same time, the recent labor market index is also lower than expected.

The committee continues to estimate a variety of possible economic conditions - including low resource utilization, weak mid-term inflation outlook, etc., which may make the federal funds continue to be in an inefficient situation for a longer period of time.

The U.S. Federal Reserve Bank also downgraded the growth expectation for the U.S. economy from the expected growth rate of 3.4 to 3.9% at the beginning of this year to 2.7 and 2.9%. It is no wonder that President Obama intends to transfer the resources of the United States in the war in Afghanistan back to the United States to build their homes.

What are these implications for the electronics industry? First, it will convince some top executives in the industry that they are right to hold cash rather than hire new people, increase R&D investment and product development. But just because of the uncertainty of the future and choosing to keep cash in hand, in this rapidly changing industry is not a strategy that can lead the company to success. The economy will eventually recover, and only those companies that have the vision to plan for the future and that can carefully manage resources and market risks will become winners.

Second, the economic cooling period can also be used as a preparation for future growth. There have been some areas where high-tech and new technologies have been demanded, especially in energy, internet, medical and resource management. This is a very good opportunity for the electronics industry because everyone is always looking for the next 'killer' application.

Now that all the key components that meet the above-mentioned need for new technologies are in place, there are still people who need to integrate them well. You don't need economists' forecasts to protect these parts. In any case, these predictions are quite far away for all.