0
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.
What else can I help you with?
What was the Dow on November 25 in 2011?
On November 25, 2011, the Dow Jones Industrial Average closed at 11,837.93. This period was marked by economic uncertainties, including concerns about the European debt crisis and its impact on global markets. The Dow's performance reflected these challenges as investors reacted to various economic indicators and news.
Enviromental impact of phosphate mining in South Africa?
on economy
Why is family oftern regarded as being in a state of crisis?
Families are often regarded as being in a state of crisis due to increasing pressures from economic instability, social changes, and evolving cultural norms. These factors can lead to conflicts, communication breakdowns, and challenges in maintaining relationships. Additionally, issues such as mental health struggles, substance abuse, and the impact of technology can further strain family dynamics, making it difficult for members to connect and support one another. As a result, many families face significant challenges that can create a perception of crisis.
Need for industrialisation in India the latest trends and its impact on economy of India?
Industrialization in India has become crucial for economic growth, job creation, and enhancing global competitiveness. Recent trends show a focus on sustainable practices, digital transformation, and the promotion of Make in India initiatives, which aim to boost manufacturing and attract foreign investments. This shift not only helps diversify the economy but also addresses unemployment and poverty, ultimately contributing to a more robust economic framework. The impact of these trends is evident in increased GDP, improved infrastructure, and enhanced innovation across various sectors.
Population impact 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
What impact is the Ukraine food crisis of 2022 having on the country's population and economy?
The Ukraine food crisis of 2022 is having a significant impact on the country's population and economy. The shortage of food supplies has led to increased prices and limited access to essential goods, causing hardship for many Ukrainians. This crisis is also putting pressure on the economy, as the lack of food security can lead to instability and hinder economic growth.
Impacts of energy crisis?
Energy crisis have a negative impact to global economy, some of which are; lack of sufficient food, fall in GDP, and inflation.
What were the key economic impacts of the US financial crisis in 2009?
The key economic impacts of the US financial crisis in 2009 included a sharp decline in GDP, high unemployment rates, a housing market collapse, and a significant decrease in consumer spending. These factors led to a global recession and a long-lasting impact on the US economy.
What is the economic impact of the microwave?
It boosted the Economy and exceeded the sales of gas.
What action did OPEC take in 1973 against the US and what impact did it have on the American economy?
The 1973 Oil Crisis.
How does the European debt crisis affect the US?
The European debt crisis can impact the US economy through various channels, including trade and financial markets. As European economies struggle, demand for US exports may decline, leading to slower economic growth in the US. Additionally, turmoil in European financial markets can create volatility in global markets, affecting US investments and financial institutions. Overall, economic instability in Europe can lead to decreased investor confidence, which may further impact the US economy.
How may saving influence economic activity?
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.
What are some recommended books about the mortgage crisis and its impact on the economy?
Some recommended books about the mortgage crisis and its impact on the economy include "The Big Short" by Michael Lewis, "Too Big to Fail" by Andrew Ross Sorkin, and "The Subprime Solution" by Robert J. Shiller. These books provide in-depth analysis and insights into the causes and consequences of the mortgage crisis.
What impact did the subprime mortgage crisis have on the global economy?
The subprime mortgage crisis had a significant impact on the global economy by causing a widespread financial downturn. It led to a credit crunch, a decline in housing markets, and a decrease in consumer spending. This crisis also triggered a chain reaction that affected financial institutions worldwide, leading to a recession in many countries.
What was the impact of Stalin's economic policies on the soviet union?
it impose a better economy
What role do TNCs play in the global economy?
TNCs impact on the economy by putting money into the the economy. Also showing the economic prosperity of the country
The Coca-Cola Company global economic crisis impact?
I don't yet please make an analysic of it
