A warm welcome to all bloggers and readers who visit my first post .... Since the past few months the global economy has been going through such stringent phases that I feel the urgency to throw an overview towards where the world economy actually stands at the present moment. A Man turns blue and collapses when deprived of oxygen and the same kicks in when economies are deprived of credit. The global financial crisis empowering itself with every passing hour has indeed suffocated the global economy. Such has resulted the world's central banks to actually research on and implement emergency measures to prevent a further financial catastrophe. The October 8th edition of World Economic Outlook , quoted that the world economy is entering into a "major downturn" in the face of “the most dangerous shock” to rich-country financial markets since the 1930s. The expected global growth, measured on the basis of purchasing-power parity (PPP), can come down to a mere 3% in 2009.
In America the graph dipped steeply as the economy lost 159000 jobs in September , the most in a month since 2003. Car sales have hit a 16 year low as potential buyers were incapable of getting credit as the markets went into the crunch. With commodity prices running on a steep fall (the price of a barrel of crude oil was down to $88 on October 8th), suffocating economies have actually evaporated the risks of inflation, thereby causing deflation to emerge as a major risk. This gloomy evidence does brings out the fact that manufacturing is extremely weak and the outputs continue to fall drastically.
As in markets elsewhere the figures continue to grow grimmer , business confidence is turned down. Thus as forecasters predict that recession is inevitable we could only hope that it remains mild.
