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A Commentary or Analysis on Recent Economic Issues - Essay Example

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This essay talks that a Commentary or Analysis on Recent Economic Issues in 2005, world economy reached its zenith and the gross world product increased by 4 percent compared to 2004, with a forecast of 3 ½ percent. Growth in the developing countries was fast in the last two decades. …
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A Commentary or Analysis on Recent Economic Issues
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A Commentary or Analysis on Recent Economic Issues

Download file to see previous pages... As the report declares the higher growth in 2004 reflects, that there has been collective progress in economic conditions except in the South Asian and Common Wealth Countries, where growth slowed down, yet remained at 6 and 7 percent. The growth in majority of the developing countries occurred in the manufacturing, with continuous growth in 2005. In the developed countries the economic performance remained mixed. North America growth was strong, with moderate growth in Japan, however pace remained slow in Europe, with the exception of new EU members.
This essay stresses that the world economy has slowed down due to a number of reasons, with basic reason being the sudden and un-expected shocks in 2004, such as Tsunami in Asia and the latest stun is the increase in oil prices by 60 percent in first ten months, although it eased at the end of year. A much greater surprise was the fluctuating exchange rate among difference currencies with Euro and Yen appreciating by 14 and 11 percent respectively. And the last surprise was the increase in commodity prices due to increase in oil prices, especially in developing countries. However the picture of world economy is not as rosy as it seems in figure. One major problem in today’s world economy is unemployment and the under employment which is prevalent in developing counties. Unless unemployment is reduced, it is hard to reduce poverty. The East Asia, the fastest developing region is facing the problem of un-employment. ...Download file to see next pagesRead More
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