There is a school of thought, supported by the IMF, that the rest of the world can pull the world economic engine despite the likely slowdown in the US. Current economic data from Europe and Asia support this view. The Fed presented an optimistic outlook for the US economy as recently as August 7 but has now changed its prediction. The housing market slowdown has escalated into a liquidity crisis of global proportion. I believe that the US economic growth during the rest of 2007 will be lower and led by weakness in consumer spending. Going forward, a consumption-led slowdown in the US economy should have an impact on its trading partners. The Indian economy has grown at more than 9 per cent in 2005-2006 and projections indicate robust performance in the coming years. India's exports may record a decline if the US slows down. In 2006, roughly 18 per cent of India's exports - about 15 per cent of India's GDP - was directed to the US. The negative impact can be partly offset by exports of services. As the US slows down, an effort to reduce costs could boost outsourcing of services. The IT sector has made and will make impressive strides. Possible setbacks from weakness in capital spending in the US may be insignificant. On the financial side, equity markets have posted losses and are likely to move in tandem with events in the US. The Sensex for instance posted declines in 2001 when the US was in a recession. Institutions in India holding US mortgage-related securities are likely to suffer losses. On the credit side, the Indian corporate sector raised about $15 billion from external sources in the first five months of 2007. At the extreme, Indian corporations could face higher costs of borrowing through this channel due to increasing credit market spreads. Firms would have to tap into the domestic credit market as an alternative, thereby exerting upward pressure on domestic borrowing costs. This could whittle down the economic growth rate. These are the possible channels through which the US crisis could affect the Indian economy. Precise estimates of these repercussions would need a more thorough analysis, which is premature given the short life of the crisis. In sum, the spill-over effects of the US financial crisis to the Indian economy may not be significant enough to overwhelm the positive economic momentum already in place.
on economy
PLICATIONS OF GROWING POPULATION IN INDIA Population growth and its relation to economic growth has been a matter of debate for over a century. The early Malthusian view was that population growth is likely to impede economic growth because it will put pressure on the available resources, result in reduction in per capita income and resources; this, in turn, will result in deterioration in quality of life. Contrary to the Malthusian predictions, several of the East Asian countries have been able to achieve economic prosperity and improvement in quality of life in spite of population growth. This has been attributed to the increase in productivity due to development and utilization of innovative technologies by the young educated population who formed the majority of the growing population. These countries have been able to exploit the dynamics of demographic transition to achieve economic growth by using the human resources as the engine driving the economic development; improved employment with adequate emoluments has promoted saving and investment which in turn stimulated economic growth. Following are the adverse effects of population growth on the Indian Economy: 1.adverse effects on savings 2. unproductive investment 3.slow growth of Per Capita Income 4.underutilization of labour 5.growing pressure on land 6.adverse effect on quality of population and 7.adverse social impact
Do the harlem shake.
Assess the impact of natural disasters on New Zealand's economy and society. Assess the impact of industrialisation and white settlement on the Maori community.
The crisis quickly spread because of the importance of the capilatism system. The US was the main country who used to loan money to the latin countries, so with the big depression, the country started to charge the debts, making a huge pression in Latin America's countries. The Latin industry started to suffer a lot, less products, high prices, the US wouldn't buy products as they used to anymore. The Latin countries were counting with the export of the products, so that made a huge impact on the latin economy.
Energy crisis have a negative impact to global economy, some of which are; lack of sufficient food, fall in GDP, and inflation.
It boosted the Economy and exceeded the sales of gas.
The 1973 Oil Crisis.
it impose a better economy
savings in an economy impact the level of investment in the economy. if the households save more, then this will lead to capital formation in the economy which will boost the economic situation of the nation.
TNCs impact on the economy by putting money into the the economy. Also showing the economic prosperity of the country
I don't yet please make an analysic of it
The Economic Impact of AIDS in South Africa (Follow the Web link below)
profits are reinvested in the local economy
One of the most important reasons for this crisis in my opinion is developed countries' huge lock out of funds in arms of massive destruction which we know are thousants of trilions of dollars , now laying idle , following the race of arming. Definintely , this would have its impact on the crisis .
The impact of imports and exports on the US open economy is quite significant. This is what shapes the economic status and is used as the measure of the productivity level of the nation.
i think the current economic crisis is all due to increased food price, inflation and non repaying habit of people towards the credit acquisition.