Archives - Economics: Page 34
Author: amparo enriquez (Fri Sep 02, 2005 3:55 am)
Title: world economics
A new wave of technological growth has impacted positively the U.S. economy. Salaries on the other hand are relatively low while income has become somewhat polarize. This changes however has made our economy more competitive particularly in times where China, India and Japan (its economy is starting to grow again after more than decade of stagnation) have become a real challenge. Things for us unfortunately are not as cheery as we would like them to be. There are is a Real State bubble that will probably deflate with either a hiss or a bang, but causing nevertheless considerable harm. Oil prices on the other hand keep going up helping to raise inflation and reducing the chances of economic growth.
The European economy is going through hard times without achieving it’s planned and expected technological growth and development. Production has slowdown and a high Euro has hurt exports, besides their labor laws are not sufficiently competitive to meet the Asian challenge. Also the role that Lisbon (Portugal) was supposed to play to help the U. E. growth has fallen behind planned objectives. On the other hand the present gloomy state of the European economy will make it difficult for them to help their new eastern European partners, a problem they need to resolved badly.
Japan is recuperating after a very long economic crisis (well over a decade) while China and India appear as the growing starts from the east. Although on the present unstable world economic circumstances their rate of growth could be hamper due to excessive high oil prices or from a reduction in the purchasing power of there main clients (E. U. and U. E.), a real possibility under the present financial conditions of frailty and instability that face this nations.
Because of the realities of the actual economic world scenario there is the possibility of a recession next year. Hopefully the present rough economic situations will subside. Reasonable oil prices will help a lot to avoid and economic crisis although that in itself won’t be enough; greater cooperation among the United States, Europe and the main members of the Asian block countries will be necessary.