The World Economy

China
It was reported that China's global trade surplus had surged 48% in 2007. This is China's fastest growth in a decade.

The growth is at risk of a slowdown as world's economy weaken and U.S nearing recession. China's exports are now playing a bigger role in China's traditionally investment-driven economy, and thus the country has more to lose than it once would have from a global economic slowdown.
(source : http://online.wsj.com/article/SB120003317754883551.html?mod=todays_asia_nonsub_economy_and_politics)

United States
On the other continent, the U.S consumer confidence fell to an all-time low as worries about jobs, energy bills and home foreclosures darkened people's feelings about the country's economic health and their own financial well-being.

Consumer confidence is now at a low of 56.3 against this time last year, at 95.3, out of a scale of 100.

Confidence are affected by the following (not limiting):

1) Job openings had declined since November. Unemployment rate is currently standing at about 5 percent.
2) The meltdown in the housing market has dragged down home values and made people feel less wealthy.
3) Harder-to-get credit has made it difficult for some to make big-ticket purchases.
4) High energy prices are squeezing wallets and pocketbooks.
5) There has been much hand-wringing on Wall Street and Main Street as to whether all these problems will plunge the country into recession.

The White House (U.S) is exploring rescue plans including tax cut while Fed Reserve Chairman Ben Bernanke pledged last week to continue lowering interest rates.

(source : http://www.kiplinger.com/apnews/XmlStoryResult.php?storyid=526835)

Let’s hope the sufficient actions will be taken to reduce the fallout.