Category: Economy

Japan The Asian giant is also on a recovery path with the economic activity recovering since the second quarter of 2009. The recovery has been mainly export driven which to a certain degree is a positive news as it indicates that other economies are also experiencing recovery. Industrial production continued to increase for the seventh consecutive month in September registering an increase of 1.4% month on month. However with weaker labour market and not much of corporate profit domestic private demand continues to be weak. Thanks to fuel and energy prices, inflation in Japan continues to be negative. Annual CPI at -2.2% was unchanged in September. Excluding food and energy annual CPI decreased to -1.0% from -0.9% in August. There are still challenges abound for the economy. With an export driven growth, Japan is to a large extent dependant on other economies for its growth. Exports  [...]

Latest indicators indicate that the world economy is on a recovery path.  The purchasing Manager’s index was at its highest level in October in more than three years clearly indicating that the economic activity has picked at a higher rate than before. Also the expansion of economic activity in October was broad based and strong in a number of advanced economies. USA The world’s big Sam is finally on recovery path with the economic activity expanding in the third quarter of 2009 after the consequent falls in the earlier two quarters. As per BEA estimates third quarter registered a growth of 3.5% in annualised terms in real GDP. This is definitely some good news given the fact that the last four quarters had negative growth. With the economy picking up momentum there has been gains in consumer spending. Private demand particularly for motor vehicle sales was helped by the government  [...]

Recent data clearly shows that US economy is on a recovery path from its deep recession. However growth is expected to be moderate with the job market not reviving immediately. According to revised estimates by the Bureau of Economic Analysis, real GDP contracted by 0.7% in annualised terms in the second quarter of 2009 as against first quarter fall of 6.4%. The contraction in the second quarter was mainly due to negative contributions from inventory investment, private fixed investment and private consumption. Reduced government expenditure and decreasing imports contributed positively to growth in the second quarter. Initial reports for the third quarter also look positive. The quarter registered growth though at a trivial rate. According to the median estimate of economists the world’s largest economy probably expanded at a 3.2 percent annual pace from July through September after  [...]