Businesses can benefit greatly from low interest rates currently available by prioritizing debt reduction in their organizations.
Global Economic Outlook
Global economic news has painted a very grim portrait of the state of the world’s economies as demand continues to decrease and governments struggle to deal with lackluster growth.
The Japanese government recently issued its monthly economic report predicting difficult months ahead for it economy, as industrial output and exports continue to decline. In a similar fashion, U.S. Federal Reserve staff economists reduced their growth forecast for the third straight time in September; economic growth will continue at an even slower pace than previously projected in the second half of 2010.
Mirroring these announcements and those from other world economies, The Bank of Canada announced on October 19, 2010 that the pace of economic growth will be “moderated” by numerous factors compared to previous expectations. The governor of Canada’s central bank Mark Carney went on to describe the Canadian economy as “entering a new phase.”
A Corporate Response?
Despite improvements in the economic situation in recent times, there remains major hurdles for growth and demand, which ultimately affects your company (and personal) bottom line. So how should businesses and organizations react to this economic news and what priorities should they make?
Although it’s a time to be cautious, it’s also a time to look for opportunities. Interest rates are currently at historic lows or have remained steady in many countries. As economic conditions start to improve, interest rates will undoubtedly increase and ultimately cost borrowers more money.
Businesses can benefit greatly from low interest rates currently available by prioritizing debt reduction in their organizations. Not only will this reduce their expenses but will also help give them a more solid footing for taking advantage of the economic opportunities to come in the future.
Conferencing technology is one way that organizations can become more efficient with their time and reduce their expenses. As governments and private enterprise implement debt reduction strategies, they are increasingly utilizing conferencing services like webinars and audio conferencing to streamline their operations and cut costs.
To sum up, the recent downgrading of economic growth forecasts must serve as a reminder, as well as an incentive, to implement debt reduction strategies internally to improve overall efficiency and finances. Business conferencing services can play a key role in helping achieve these goals.