World economy still resilient against crisis

The continuing turbulence in the global financial markets is, to some extent, reminiscent of the sentiments during the financial crisis seven years ago. But it would still be premature to predict the recurrence of a major global crisis.

Despite the slumps in the stock markets of many countries, the global economic situation is improving, albeit slowly. The US economy is leading the world, recovering steadily, with such indicators as the inflation rate, jobless rate and corporate profitability all on the mend.

In Europe, the spreading risk of the sovereign debt crisis has been kept under control after eurozone leaders reached a provisional agreement on a third bailout plan for Greece in July. Although that is still subject to ratification in some national parliaments, the situation has undoubtedly eased.