World Recession in 2012

The Impact of 2008, worldwide in 2012

The world has left behind the bitter memories of the financial turmoil of 2008 and moved on have we really moved on or is it just an imaginary assurance we keep giving our self? In this article I am going to give a bird’s eye view of the condition of the world from a macroeconomic prospective. We will see how active the recession still is and compare data on a broad scale to arrive at a comprehensive opinion. Let’s look at GDP on a broader more global scale.

Year	2007	2008	2009	2010	2011
World	5.2	3.0	-0.5	5.3	3.9
Advanced economies	2.7	0.6	-3.4	3.2	1.6
Euro zone	2.7	0.7	-4.1	1.9	1.5
USA	2.1	0.4	-2.6	3.0	1.7
Developing countries	8.3	6.0	2.8	7.5	6.2

Looking at the gross world product is the combined gross national product of all the countries in the world. The 2011 global rate is 3% and a low of 1.6 in advanced economies. The Eurozone showing a positive 1.5 and United States not far away at 1.7%.The developing countries indicating 5.6% is a healthy sign. The world employment figure according to International Labour Organisation is 202 million unemployed from the global labour force. This figure is likely to go down in Q4 of 2012 and Q1 of 2013 as drastic reforms within domestic markets in the Asian subcontinent. The unemployment in the west needs to be addressed and hopefully re-elected world leader and president of USA Mr Obama will look into that for USA. The UK and Euro area look grim and key reforms by Mr Draghi can push the figure down, but it’s easier said than done.

The world situation looks mixed but we can expect hope and progress even if it low. This is a good sign. A sigh everyone is relieved to see. As investors’ confidence is slowly building up we can only hope that tomorrow will be a brighter day than today.