Essay on The Global Economy and the Stages of Recovery

The global economy and the stages of recovery: As is known, there has been a decline in global GPD growth rates during the last two years due to the global financial crisis which began in August 2007; it is considered one of the most serious crises experienced by the global economy since World War II. According to the latest update to the World Economic Outlook by the International Monetary Fund (January 26, 2010), global GDP growth fell from 5% p.a. in 2007 to 3.2% in 2008, dropping to -.08% by 2009. According to the report, the world economy has begun to expand again, and there have been improvements in financial conditions. It is a significant improvement, but it will still take time to return to where it was in the past.†¦show more content†¦As can be seen in the capital markets indexes, the indicators fell sharply throughout the world without exception. This decline led to a loss of confidence among investors. Currently, the capital markets passed their nadir in the beginning of 2009 and the market has started recovering from all-time lows. In addition, investor confidence has improved, while economies remain weak, although growth is expected. The majority have in fact returned to growth, albeit only showing a slight rise. Experts are split into two camps: the optimistic and the pessimistic, with some experts expecting a return of the recession while others anticipate recovery.(Revisiting the global crisis,2009) This table below shows the performance for some capital markets indices over the past three years according to CNBC: 2007 2008 Change (%) 2009 Change (%) DOW JONES INDU AVERAGE NDX 13,246.53 8,776.39 -33.75% 10,428.05 18.82% NASDAQ NMS COMPOSITE 2,652.28 1,577.05 -40.54% 2,269.15 43.89% SP 500 1,435.65 903.25 -37.08% 1,115.10 23.45% FTSE 100 6,456.90 4,434.17 -31.33% 5,412.88 22.07% DAX 8,067.32 4,810.20 -40.37% 5,957.43 23.85% CAC 40 5,614.08 3,217.97 -42.68% 3,936.33 22.32% HANG SENG INDEX 27,812.65 14,387.48 -48.27% 21,872.50 52.02% NIKKEI 225 15,307.78 8,859.56 -42.12% 10,546.44 19.04% SHANGHAI SE COMPOSITE INDEX 5,261.56 1,820.81 -65.39% 3,277.14 79.98% Saudi Arabia The Saudi economy in 2010: A great number of reports expect anShow MoreRelatedThe Four Stages Of The Business Cycle799 Words   |  4 PagesThe four stages of the business cycle are complex phases that our economy undergoes. 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