Where are you going, world economy?

The world is afraid that the Fed will increase interest rates. In the Ukraine everything is the same. Europe is suffering because of the Russian sanctions. Europe’s flagship, the German economy is struggling but a recession isn’t likely. Still, Germany underperformed in terms of both export and import. It is evident that Europe’s economy needs some kind of stimulus to avoid deflation and recession. Expectations are high as regards the European Central Bank’s role. MNB, the Central Bank of Hungary didn’t lower the base rate further. The state budget’s surplus was HUF 14.2 billion in September. Forecast is that Hungary’s economy will expand by 2.8 percent this year and by 2.3 percent in 2015. ‘Invisible forces’ seem to be strengthening the forint just like at the end of last year – perhaps they want to reduce the state budget deficit this way?