US slow down and global economy

US slowdown since a couple of years may have worried the world to a great extent; the good news is that according to economists the world economy is now in a position to withstand the US recession. US has been witnessing slow growth with the weakening of dollar, diminished trade, industrial output, housing bust which gives a good opportunity to the emerging market to witness higher growth.
Though the year 2011 will go slow .2% point to 4.6% according Goldman Sachs, its effects may not be panicking. The reason behind this slowdown may be due to the slow recovery of US from recession though it is quite declared that US has come out of the worst recession. To some degree there is a clear sign of slow momentum in US market with the factory orders sliding to .5% and unemployment forecast to go up to 9.7% from 9.6% of previous month ( from Bloomberg survey)
This year the major contributory factor toward world expansion is made by the developing nations who have a direct contribution of 60%. BRIC countries have a larger room for growth as US-centric countries are now looking up to these countries for investment and trade. Some of the countries that were not affected by the worse recession are India, china, Inodnesia, while china and Russia and Brazil may implement flexible policies to promote cross-country trade.

By : | Category : Self-help| Date : November 14,2011

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