Uneven growth dampens spirits

Some countries, such as the UK and Germany, are succeeding with their economic policies while the Netherlands and France remain locked in weak performance.

The Commission went on to say that “demand is only gradually firming and unemployment is still high.”

The EU economy is still generating less output and providing work for fewer people than before the financial crisis started in 2008. The unemployment rate is forecast to be 11.8% this year falling to 11.4% in 2015. This can hardly be termed as good news.

The Mediterranean countries remain mired in the quagmire of their own making despite some signs of recovery, but these are not fundamentally solid enough nor do they address the crux of the economic malaise nor the exceptionally high unemployment.

In Asia, China continues to struggle to maintain growth at its goal of 7.5% which in turn puts pressure on its supplier countries in the rest of Asia with the exception of Japan whose economy grew 1.5% in the first quarter.

Meanwhile, the US economy continues to grow slowly but surely, driven in the main by energy-related investments, but output remains weak. Consumer demand has, however, finally improved.

The question is, can we read anything into these economic indicators that can be used to project a rosy outlook going forward? The answer is no.

Global growth is uneven, faltering and relatively slow in most countries. The threat of political instability across the world is having an impact on consumers causing them to remain cautious with their money in a climate of uncertainty. This not only impacts consumer goods shipped in container vessels, but also the bulk trades as industry investments remain below hoped for levels reducing demand for oil and construction materials.

This all suggests that the remainder of the year will see growth at the ports, but crucially this will be at levels that are less than desirable.