Bush versus Kerry: The Economy in the Balance? (Part II)

What kind of international economic context will a President Bush or a President Kerry face? What does it imply for either candidate’s future potential room for manoeuvre?

At first glance the international economic scenario does appear rosier than ever. Synchronized world growth this year has produced the fastest global growth rate in a generation. Nevertheless, a number of lingering weaknesses and new threats will reduce the responsible room for manoeuvre for the next US president, regardless of who actually occupies the White House in 2005. The list of international economic challenges and threats include high oil prices, flimsy foundations for recovery or continued growth in most of the major economic zones, deepening global macroeconomic imbalances, the spectre of a dollar crisis and the threat of renewed protectionist pressures. Neither Bush nor Kerry would have it easy.