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THE world economy is not in good shape. The news from America and Britain has been reasonably positive, but Japan’s economy is struggling and China’s growth is now slower than at any time since 2009. Unpredictable dangers abound, (1) from the Ebola epidemic, which has killed thousands in West Africa and jangled nerves far beyond. But the biggest economic threat, by far, comes from continental Europe.Now that German growth has (2) , the euro area is on the verge of tipping into its third recession in six years. Its leaders have (3) two years of respite, granted by the pledge of Mario Draghi, the European Central Bank’s president, to do “whatever it takes” to save the single currency. The French and the Italians have (4) structural reforms, while the Germans have insisted on too much (5) . Prices are falling in eight European countries. The zone’s overall inflation rate has slipped to 0.3% and may well go into (6) decline next year. A region that makes up almost a fifth of world output is marching towards (7) and deflation.
Optimists, both inside and outside Europe, often cite the example of Japan. It fell into deflation in the late-1990s, with unpleasant but not (8) consequences for both itself and the world economy. But the euro zone poses far greater risks. Unlike Japan, the euro zone is not an isolated case: from China to America inflation is worryingly low, and (9) . And, unlike Japan, which has a homogenous, stoic society, the euro area cannot hang together through years of economic sclerosis and falling prices. As debt burdens soar from Italy to Greece, investors will take fright, populist politicians will gain ground, and—sooner rather than later—the euro will (10) .
- 1) indescribably
2) skeptically
3) particularly
4) generally
5) usuallyAnswer – 3)
Explanation: particularly – to a higher degree than is usual or average. - 1) depleted
2) forfeit
3) disinherit
4) bereaved
5) stumbledAnswer – 5)
Explanation: stumbled – trip or momentarily lose one’s balance; almost fall. - 1) dispossess
2) dissipate
3) legitimate
4) squandered
5) uncountedAnswer – 4)
Explanation: squandered – waste (something, especially money or time) in a reckless and foolish manner. - 1) capitulated
2) dodged
3) exhausted
4) accosted
5) withstandAnswer – 2)
Explanation: dodged – avoid (someone or something) by a sudden quick movement. - 1) austerity
2) divest
3) crustily
4) consistently
5) certaintyAnswer – 1)
Explanation: austerity – sternness or severity of manner or attitude. - 1) advert
2) indefinite
3) outright
4) drain
5) ambiguousAnswer – 3)
Explanation: outright – wholly and completely. - 1) hesitating
2) stagnation
3) provisional
4) rigorous
5) stagnationAnswer – 2)
Explanation: stagnation – the state of not flowing or moving. - 1) conditional
2) incomplete
3) apocalyptic
4) veridical
5) satisfactoryAnswer – 3)
Explanation: apocalyptic – describing or prophesying the complete destruction of the world. - 1) slipping
2) acceptable
3) precise
4) equitable
5) amenAnswer – 1)
Explanation: slipping – lose one’s footing and slide unintentionally for a short distance. - 1) rigirous
2) righteous
3) veracious
4) impeccable
5) collapseAnswer – 5)
Explanation: collapse – (of a structure) suddenly fall down or give way.