Global Economy Showing Signs of Life

by Jessica MCILHINNEY on September 3, 2009

The travel industry and the world at large got good news this week as there are signs that the global recession is starting to end.  Unexpected gains in the U.S.  manufacturing sector, as well as gains in Europe, and Asia are much higher than originally predicted and have some economists predicting that the end is near.  However, not all news was good, as the UK economy continued to fall, which was caused mostly by heavy debt and a lack of stimulus from the outside.

As manufacturing jobs start to return to the U.S. and Asia, the travel industry can expect to see a boost from travelers released from fear over the global recession.  The growth in the industry was the first since January of 2008 according to an index based survey.  This also coincided with positive news from both the auto industry and real estate industry, which both saw their highest numbers of sales in at least two years.

The travel industry has been hit particularly hard by the economy, as credit pinched customers are deciding that expensive travel abroad is something they can do without.   The United Kingdom in particular is hoping these numbers will mean increased visitors, which means increased revenue for hotels and resorts, which are reporting huge losses over the last two years.

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