A plausible answer to why the global economy has not recovered yet, encircles around wilting confidence, be it amongst the investors, consumers or the within the overall economy. From one side of the Atlantic to the other, most of what happened has been due to the drowning global optimism: from fading confidence among the European leaders to address the Euro predicament to the conundrum for US as the fiscal cliff approaches; the powerhouse economies are livid with the hue of skepticism. What can the smaller economies bring to the table when the slowing growth in China and India has also dented the little optimism that was left? This has left the world resounding with concerns like economic pressure, job creation, increasing food prices and health concerns. Locally, the fast track evaporation of optimism and confidence echoes misfortunes like receding economy, widening energy deficit, and increasing fuel and food prices. The latest outlook through its quarterly index: Global Confidence Index by World Economic Forum also bears testament of the receding optimism all around the globe. The index which is a research initiative by a diverse group of international experts on key trends, global risks and their inter linkages, has also plummeted to its lowest level since its administration. One of the three prominent aspects of this survey is the staggering perception of the deteriorating confidence about the global economy. According to the survey, 72 percent of businessmen, experts, international organisations, and academia are not confident about the state of the global economy over the next twelve months. Further, almost 68 percent votes went out for economic disruption as the most threatening and foreseeable disturbance around the globe in the forthcoming year. At the same time, global governance cannot be overlooked; the state of the existing institutional frameworks speaks volumes about their ability to deal with the current quandary. With waning confidence outlook, will the world tip into yet another recession, chances are high!
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