After Greece, Now it is Hungary’s economy that is in trouble. There has been a fear in the market that Hungary is facing a debt crisis and hence its currency has devalued considerably against euro. According to spokesman of Viktor Orban, Hungary’s Prime Minister, the earlier government of Hungary falsified the data. Apparently, Hungary’s currency, the Forint, has devalued by 5.6% against the Euro. Read the rest of this entry »
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Hungary’s economy crisis
On June - 5 - 2010
JP Morgan faces heavy fines
On June - 3 - 2010
JP Morgan has been fined a record 48.2 million dollars because it risked client money even though no client money was actually lost. The fine is imposed by Financial Services Authority (FSA). JP Morgan’s by lumping the money of its clients with its own money for seven years endangered the wealth of its clients.
US consumers can’t support world economy
On May - 30 - 2010
Timothy Geithner, US treasury secretary, made it very clear to the world that US consumers alone cannot support the world economy. He made this statement during his visit to Berlin. While in Berlin, he held talks with German finance minister Wolfgang Schaeuble.
Greece, Portugal and Spain have seen a massive increase in their borrowing costs. Also other EU members have become cautious after seeing the condition of countries like Greece. Germany despite being Europe’s biggest economy is also following suit.
EU Comissioner – Greek Recession will be greater
On May - 30 - 2010
The EU commissioner of Economic Affairs Olli Rehn said that the recession in Greece is much greater than expected. According to many, recession in Greece in the year 2010 will be 4% of GDP while in 2011 it will come down to 2.6% of the GDP. The commissioner mentioned that the recession be higher since Greece requires additional reforms worth 2.5% of GDP during the first 2 years of financial adjustment. It is expected that by 2012 end, the Greek economy will start to improve.
Olli Rehn also praised the EU and IMF program and stated that the program will help Greece to stabilize its economy.
High Economic Growth – India should focus on Development
On May - 30 - 2010
The advance estimate of the 2010 fiscal year growth for India’s economy is around 7.2% though it is believed that the actual number will be higher. Till now, no economist has thought of the growth to be lower than 7.2% and many actually felt it would be near 7.5%. On coming Monday, government will let the world know the growth rate of the fourth quarter which many economists believe to be around 8.7 to 9.3%. In the first 3 quarters, India has seen growth rate of 6.1%, 7.9% and 6% respectively.
Government’s support to the industry allowed the economy to grow at 7.9% in the second quarter. Growth decreased to 6% in third quarter due to the contraction of agriculture production by 2.8% and slipping of community, social and personal services by around 2.2%.
When you think about economic growth analytically, we realize that a country should be looking for balance between economic growth and development.
Chinese Loans – Pathway to another Recession?
On November - 16 - 2009
With the whole world yet stuck in recession, China is probably the only one that is unaffected by this global trauma. With the growth rate of 8.9% in the last quarter, china’s economy is booming and is expected to improve more during the rest of the year. As stated by Mr. Xiaochao, spokesman for National Bureau of Statistics, the condition of the Chinese economy is very stable and good at the moment.
With everything going great with the Chinese economy, many experts believe that China is creating what is called a “bubble” economy, the economy that will burst for sure one day. The American economy burst happened because of them providing very easy credit. In the case of China, they are giving loans to just about everyone. From the beginning of this year till now, 1.27 trillion dollar has been given by China as loans to Americans.
