A group of Finance Ministers and Central Bank Governors form G20. These are from 20 major economies namely: Mexico, India, USA, UK, Turkey, Argentina, South Africa, Saudi Arabia, EU, France, South Korea, China, Brazil, Australia, Japan, Russia, Germany, Mexico, Canada and Indonesia.
The key issues and strategies towards achieving a stable global economy is the main purpose of these meets.With the major crisis faced in Europe this meet becomes very important. The question raised in many minds is ‘will this meet have any significant results or not?’ With the wide differences in views between the rich and the developing nations, it is unlikely that a strong solution will be reached.
Since the Euro Zone holds a significant share in the contribution towards global economy, the Sunday elections in Greece hold equal importance as this will decide the fate of the country- whether stays in the Euro Zone or wiped out of the Euro Zone The continuing downfall in the Euro Zone will hamper global economy and affect developing countries that are its trading and investment partner. If Greece falls out of the elections, it could hit international markets which are connected in someway to Greek economy and on investors or could produce a ‘ripple effect’ that will show the damages much later. A change in government in Greece means that the policies and regulations will change, which further means that the new government will decide whether they should default on the debt and subsequently exit the Euro zone.Whatever the decision panic is the button investers chose to press without even knowing whether the markets they remain invested in are even related to Greece or not.
Hence, Monday morning will prove to be of utmost importance to the world economy as investors and markets wait with bated breath.
© 2012 Deena Zaidi. All rights reserved.