Global Economic Condition

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Global Economic Condition
Great Recession of 2008-09 has slowed the growth of world output, especially in the developed countries like EU, USA, Japan and Canada etc. In the developed countries unemployment remains high at the rate of nearly average 9 per cent again income of the employed people remain stagnant1. Although the great Recession is on the way of recovering, more and more worker remain out of the job for a long time, especially young workers, medium-term growth prospects also suffer because of detrimental effect on worker’s skill and experiences.
It is known that European Union and the United States of America form the two largest economies in the world, but due to the Great Recession their economic condition are twined together. The problems are not bounded in themselves; they also affect deeply the developing countries and spread to the Great Recession. So from the global recession of 2009 the developing countries, like South Asian and central African countries would be hit through trade and financial channels.
Surrounded by great uncertainties, it further assumes that the monetary policies among major developed countries will remain accommodative. It is also assumed that the key commodity prices will fall down a little from the current level of prices, again exchange rates among major currencies will fluctuate around the current levels of exchange rates.
Gradually the condition is recovering. According to the United Nations, WESP2, the growth of world gross product (WGP) is forecast to reach 2.6 per cent for 2012 and 3.2 per cent for 2013.
Economic condition of developing countries are expected to support the world economy as in the developing countries Gross product is growing on average 5.6 per cent in 2012 and 5.9 per cent in 2013 while whole world experienced the great recession. This is well below the pace of 7.5 per cent achieved in 2010, when the output growth among developing countries in Asia and Latin America such as Brazil, China

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