World Economy in 2008 - A Brief Look at Different Economies
People all over the world, irrespective of their nationality and religion are all set to welcome New Year 2008 with much enthusiasm and verve. Everybody is hoping for prosperity, better future and prevalence of happiness in global family.
It is predicted that World Economy will continue to grow in the year 2008. However, there is high possibility that there will be decline in growth rate this year. The projected rate of world growth in the year 2008 is approximately 4.6 per cent whereas the current growth rate for the year 2007 is 5.4 per cent . It is expected that most of the Central Banks will keep away from monetary restrictions due to inflation. This will contribute significantly in the growth of world economy in the year 2008. moreover, high investments are expected to continue in the year. One of the most interesting things about the world economy in 2008 is that it is expected to be driven by the emerging economies such as India and China rather than by European, USA and Japan economies.
Growth Possibilities for the world Economy in 2008
The recent slow down in the world economy is because of the slow growth on the Economy of USA. There has been decline in private consumption in the United States. The real estate sector across the world has undergone severe crisis. In the world economy, continued inflation, fluctuating financial markets and volatile prices of oil are some of the major threats to the economic growth in the year 2008. as per the chief economist of IMF, India and China are expected to make the maximum contribution in the growth of global economy. Growing international trade, high employment and higher corporate profits are few positive traits that prevail in the world economy in the year 2008.
The performance of all the developing countries will play an important role in the global economy in the year 2008. while Middle east and Africa are expected to grow at 6.6 to 5.8 respectively, the emerging Asian economies such as South East and East are expected to grow at 8.4 per cent in 2008.
Economy of USA in 2008:
The economy of United States of America is experiencing low growth rates. By the end of the year 2007, the economy of USA is expected to record a growth rate of 1.8 per cent, that is one of the lowest growth rates in the America in the recent years. Although, according to economists, there is very low risk of recession in the US economy, however, insufficient business credit, decline in the real estate sector, lack of growth in industrial production and slow growth of employment are some factors that would weigh heavily on the economy of the United States. Economists have announced only three to four per cent growth for the economy of United States in the year 2008.
Economy of China in 2008:
The economy of China is expected to grow at 10.8 per cent in the year 2008 which, instead of sudden slow down from the year 2007, would be substantial. The global trade surplus of China is expected to reach more than three hundred billion dollar marks next year which is growth rate of 21 per cent. According to economists, 5 per cent inflation is predicated for Chinese economy.
Economy of India in 2008:
A growth rate of more than 9 percent has been expected for the Economy of India in 2008. Indian exports would cross the $ 250 billion mark in the year 2008, according to the Finance Minister of India P. Chidmabaram. The appreciating Indian rupee, the service sector that contributes more than 51 per cent to the GDP of India and the potential of the Stock market in India are forecasted to be the crucial factors for the economic growth of India in the year 2008.
Economy of Japan in 2008:
the Japanese economy is expected to grow from increasing private consumption and higher investments. The economy of Japan, currently growing at 2.5 per cent is expected to grow at 2.7 per cent in 2008.
Economy of Middle East in 2008
The economies of middle east are expected to rise from increasing oil prices. Six per cent has been expected for the Middle Est Economies whereas Egypt and Iran are forecasted to record higher growth rates.
Economy of Africa:
After many years of slow growth rate, the economies of Africa are gaining momentum and maintaining their steady growth rates. The average growth rate of sub Saharan economies which was 5.8 per cent in 2006, is forecasted to be 6.3 per cent at the end of the year 2007 and would rise further in 2008. oil exporting countries of Africa like Angola and Nigeria are providing boost to economies of Africa.
Economy of Europe in 2008:
Capacity utilization is forecasted to ti elevate in the economy of Europe (Euro countries) in the year 2008. average growth rate of 2.4 per cent is expected for the Euro economy.
Economy of United Kingdom:
According to experts, growth in the economy of United Kingdom is expected to slow down in 2008. Currently, it is growing at 2.7 per cent, it is forecasted to grow at 2.4 per cent in the year 2008.
Economy of Russia in 2008:
The economy of Russia, currently growing at 8 per cent is expected to grow at 6.6 percent in the year 2008.