The World Economy is recovering but some countries slower than others

Introduction of  World Economy

The world economy, or global economy, generally refers to the economy, which is based on economies of all of the world's countries, national economies. Also global economy can be seen as the economy of global society and national economies – as economies of local societies, making the global one.

                

Population (July 19, 2011):	6,950,015,840
GDP (PPP):	US$74.00 trillion, €60 trillion (2010 est.
GDP (Currency):	US$61.96 trillion, €55.8 trillion (2010 est.)
GDP/capita (PPP):	US$10,500, €7,500
Annual growth of per capita GDP (PPP):	-0.8% (2009 est.)
Unemployment:	30% combined unemployment and underemployment in many non-industrialized countries. Developed countries typically 4-12% unemployment.

Today the world economy is in the big crisis due to crisis in US and European countries. Recently the World economy is fallen to the 7 trillion due to the crisis in the whole world.

Some countries like that America, Germany, china etc

Discussion

The world economy is moving on from a post-crisis bounce-back phase of recovery to slower but still solid growth this year and next. Global GDP, which expanded by 3.9% in 2010, is expected to slow to 3.3% in 2011, according to the World Bank’s Global Economic Prospects 2011.

Most of the developing world has weathered the financial crisis well, and, by the end of 2010, many emerging market economies had recovered or were close to resuming the growth potential they had attained prior to the crisis.

Developing country growth of 7% in 2010, and 6% in 2011 is projected.

That shows due global crisis growth of developing countries is decreasing as compare to the previous data.

The other issue:

Asia has rebounded and even Western countries will recover, but slowly; however, many structural problems remain:

Ø Financial markets remain weak and current labor laws in some Western countries are too rigid so that high unemployment levels are likely to persist for some years.

Ø Policymakers will have to strike a balance between supporting the economy and winding down stimulus measures. Further, plans to fix public finance (growing deficits and debts) will be developed, but may fall short of expectations and many countries will continue to live beyond their intergenerationally equitable and sustainable means.

But also the growth champions will face challenges: 

Qatar will see again double-digit GDP growth and continue to boost both its oil and gas sector and the shift towards education- and technology- intensive sectors, thus outperforming its Arabic competitors such as the UAE who’s Masdar Institute in the fledgling Masdar City will host the World Future Energy Summit in January. But the region must first regain confidence after the Dubai World debt appeared unsafe. China will probably start to tighten its monetary policy and reduce lending to prevent asset price bubbles, NPL growth and CPI inflation, but sees its growth rate increase to 9-10%.

Conclusion

Ø Developed countries invest money in the developing countries but at the time of the crisis they put back all investment in their own country. So that developing countries slow in the growth level.

Ø Some developing countries are to be depending upon the developed countries.

Reference:

http://en.wikipedia.org/wiki/World_economy

http://gppreview.com/2010/01/01/the-world-in-2010-the-top-ten-economic-and-financial-issues/

submitted by:

Pooja Sardana