Analyze one week of world economy - Essay Example

US, China, Japan, and Global Economy Review The period between 23rd and 27th of February 2015 realized the following effect on United States Economy. Labor market continued firming and stabilizing with an increase in job openings higher than it was the 14 years ago thereby causing an increase in the turnover. Almost one million employment in the three months ending February was realized the best since 1997 resulting in a reduction in the unemployment rate to about 5.7 percent the lowest in OECD.

Small enterprises optimism index declined by 2.5 points but remained relatively stable by 97.9 showing possibility of growth and expansion. GDP growth in the duration rose by 2.2 percent recognized as the fastest growth rate.The trend remained solid and domestic private sales accelerated rapidly. Likewise, data released on February 26th show that US has a deflation generated by 19 percent decrease in prices of energy, resulting in an inflation of -0.1 percent. Eurozone region has witnessed a strong economic environment as Germany spearheads it.

Germany economy realized a growth and eurozone realized an increase of almost 0.3 percent. The overall consumer spending got off to a start that was very slow leading to the falling in retail sales by 0.9 percent decline in the previous month. Much of the drop was expected from the gasoline station that realized a fall of 9.3 percent. Prices slide the better part of the week resulting in weak sales everywhere excluding gasoline. There were declines in sales at food and beverages businesses, clothing retailers and auto dealers offset by unpretentious gains in online retailers, restaurants and bars and home improvements.

The control and organize group that excludes gas, building materials, car sales and food services shows a superior consumer enough spending. Although the sizeable decline in the prices of gasoline was foreseen as to enhance general consumer spending, these never happened. Due to the falling in gasoline sales inflation rate dropped, as a gallon of gas prices fell by 18 percent in the week as a result of seasonal adjustments. Personal saving rate also jumped up to 4.9 percent. Moreover, retail sales fell unexpectedly in the week but started rising.

However, China economies continue to weaken with the rate of inflation reaching zero. There was a decrease in consumer prices while producer prices plunged unexpectedly. China trade industry of export was inclining. There was a decline in imports and was contributed by the drop in petroleum prices. Japanese economy recovered from the recession and grew with 2.2 percent shaking off the stagnation. Consumer behavior remained soft as the exports increased tremendously. Inflation rate has been moved from the previous rate of 2percent.

The gross domestic product noticed an increase of 0.6 percent and the depreciated yen drove up exports further high. Private consumption that takes up to 60 percent of the Japanese economy rose up 0.3 percent. Global economy is slowly and gradually growing and is estimated to grow at 3 percent in the year of 2015.The acceleration was mainly driven by mature economies such as America and the Euro Area mainly because of the decrease in oil prices.Reference"Economic Calendar." FXStreet. Web. 3 Mar. 2015.