Germany hailed world’s most popular country based on global perceptions

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A BBC survey positions Germany as the most popular country in 2013, voted for by nearly 60 per cent of the poll’s global participants. Europe’s largest economy moved to the top spot to displace Japan, whose positive ratings fell from 58 percent to 51 percent.

“There are lots of reasons why Germany is admired,” Alastair Newton, a political analyst at Japanese investment bank Nomura, was quoted in reports. “It is a large and important world economy, a world-class manufacturer, and has a chancellor who demonstrates genuine leadership. The question also is, where else would it be? It is hardly likely to be the US, given their attitude to the Middle East, or China given Western and Japanese concerns on the country.”

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Germany’s leap to number one was helped by agreeable reviews from respondents in Spain, France, Ghana, and Australia.

It is worth noting that an equally positive assessment for Germany was not shared by some of its neighbors in the Euro in the wake of sovereign debt and financial crises. In stark contrast to its poll showing, Germany had scored in the red by the hand of respondents from Greece, which had suffered a particularly thorny economic life. Chancellor Angela Merkel’s government was largely looked upon for financial bailouts, which it had strained to release in favor of high-handed fiscal reforms. Other Euro members, such as Italy, are raising hackles at Germany’s strict debt management solutions, as social welfare in financially challenged European economies takes a beating.

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The United Kingdom, following a successful hosting of the 2012 Olympic Games, also improved its ratings and climbed to the third spot. Israel, North Korea, Pakistan, and Iran got the least favorable ratings.

I am Dana Ray Reynolds, a financial planner who provides assistance to businesses and individuals on their investment decisions, particularly in the areas of risk management and tax planning. Follow me on Twitter for more updates.

Another global recession: PIMCO believes there is a 60 percent chance

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Leading US investment firm PIMCO is forecasting a 60 percent chance of another global recession in the next few years. Although inflation rates will remain stable in the medium-term, the global economy is feared to plunge to new record lows.

In a research note, portfolio manager and PIMCO managing director Saumil Parikh wrote, “Given that the last global recession was four years ago, and also given that the global economy is significantly more indebted today than it was four years ago, we believe there is now a greater than 60 percent probability that we will experience another global recession in the next three to five years.”

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Characterized by very low growth rates in many countries around the world, the decline of robust financial activities in Europe, and the growth in trade and currency tensions between developed markets, the anticipated global economic disaster will force investors of all sizes to temper their return expectations.

The US economy grew at a 2.4 percent annual pace in the first quarter of the year—a remarkable sign of recovery from recession. In contrast, the 17 Eurozone nations have remained stagnant. The region’s economy contracted for a record sixth consecutive quarter at the start of 2013 and is believed to be the epicenter of the approaching recession. Even China, the world’s most resilient major economy, has fallen prey to fluctuating growth rates over the last few years, causing the IMF to lower its forecast on the country’s economic projections.

PIMCO’s founder and co-chief investment officer, Bill Gross, argued that while the global central banks’ policies may have pacified some economies, they never completely succeeded in returning them to stable growth rates.

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I am Dana Ray Reynolds, a Los Angeles, California-based financial planner specializing in risk management and tax planning. Visit my blog for more insights into business, finance, and investing.