Additionally, there is always a shift in supply and demand. The needs of nations and individual differ making it complex to preserve the steadiness of the economy. An ideal situation can never exist in the world economy making recession inevitable. Consequently, the recession that took place in 2008 was expected. Recession has significantly influenced the global economy as apparent in trade, unemployment and relationship amid countries. The current state of the global economy after recession According to Foroohar & Schneiderman (2010), recession refers to a situation when the economy has experienced inflation for quite a long period. Recession affected most nations in the Western hemisphere in 2008. Before the recession began, Japan and the US were controlling most part of the global economy. Consequently, countries in the West were experiencing a boom in the property market. The rates of unemployment were at the lowest level for a long period, and banks were charging lower interest rates for loans. The decrease in lending rates contributed to the increase in investments. However, the gains came to a halt after the recession in 2009. Presently, the United States and Japan have limited control on the activities taking place in the global market. The two countries no longer influence trade directly because they are facing competition from China. The influence they had has shifted to countries like China, Brazil and South Korea. However, the US is still the global economic powerhouse. According to Avantika (2011), countries like India and Brazil are beginning to exert their influence on trade globally. As a result, growth is on the decline in Japan and America. This is making investors shift their plans by investing in developing economies. It is clear that Malaysia and Singapore are formulating innovations to counter the dynamics of trade. Concurrently, the US in coming up with policies to correct the decline of their economies. Consequently, the recent presidential debate in America focused on measures for reviving the global economy. According to Avantika (2011), there is stagnation in the growth of the economy of China at 7 per cent. This is a decline from the double-digit growth realized in the same time last year. This is an indication that the global economy is unpredictable. Schaeffer (2009) adds that uncertainties in the global economy have made nations readjust their plans. For instance, South Korea is deploying their resources towards energy production to avert the energy crisis. This is because most of the economic activities in the global economy are dependent on fossil fuels. Developing economies in Asia are opting to trade with African countries. This is affects global trade by reducing the demand of commodities from developed economies. Indeed, African nations have increased their demand for products from the markets in Asia. Besides, China is encouraging domestic consumption to reduce their dependency on exports. Moreover, China has reformed their pension scheme to cater for the needs of the middle-class citizen who constitute the majority in the populace. According to Neumark & Troske (2012), it is necessary to review trade policies for economies of Asian countries. New policies will bring changes in the healthcare and the education sector in developing eco
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The current state of the post-recession global economy Name Instructor Date The current state of the post-recession global economy Introduction The global economy is characterized by the production and allotment of resources around the globe. These activities affect the livelihood of people either optimistically or negatively depending on the state of the economy…
(China’s Global Shield, 2009) With the introduction of the market base economic reforms in the year 1978, China became the fastest growing economy (BBC News, 2009). It has also been the world’s largest exporter and the second largest importer of goods.
According to the paper, China previously used conservative practices in trade spheres by raising level of tariff rates and granting subsidies to the domestic enterprises. From the 1990s the government started to develop the potential of foreign trade activities. Ascension to the WTO helped the Chinese companies to increase its volume of exports.
In principle, we know that we are in a recession when there is a general decline in the economic activity. This becomes obvious when we look at the real gross domestic product. This is the most viable indicator to know the state of the economy. This is regarded as a noteworthy turn down in economic activity just after the economy reaches a peak and end when it reach trough (New York Times, 2010).
Also, economists forecasted that the contraction is not permanent; however, the abrupt shifting has worsened the EU recession (Pylas & Rising, 2013). In world market, this may result to the withdrawal of investments and collapse in confidence. For instance, countries worldwide may withdraw their investments in Germany, as they believed that the latter’s economic frame is unstable, and would just compromise their own problem.
In 2011, the country was regarded as the 13 largest country in terms of nominal GDP. Moreover, it is the 19th largest importer and exporter in the world. The service sector dominates Australia whereby is comprises of 68 percent of the country’s GDP. The growth of the economy is heavily reliant on the mining and agricultural sectors (Lowtax).
According to the paper, the Indian economy encompasses a number of sectors which range from traditional farming to modern industries. India is one of the major exporters of services and components related to the information and technology sector. The country profited from the advancements made by its citizens in the field of software development.
Current US GDP Figures and the Current State of the US Economy
It is normally calculated on a yearly basis. It includes all the public and private consumptions occurred within a definite territory. It signifies the current state of any country’s economy.
Together, all sectors of the American economy produce almost $4000 million dollars worth of goods and services annually, and each year they turn out almost $190000 million more. Most Americans consider themselves members of the middle economic class, and relatively few are extremely wealthy or extremely poor.
To locate the root of this problem, we must cast our minds to a time before the Global War on Terror became the signpost for guiding international policy, and even before American economy started shifting from the domination of global production to the domination of
Today, however, as a result of new regulations and international cooperation to stabilize global and domestic banks, the UK is emerging from this recession. After the UK government spent well over £62 billion to provide banks with new capital infusions the UK improved the majority of its economic weaknesses.
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