Economic conditions are a broad concept that encompass a wide range of issues that are related to an economy. To begin with, economic conditions could be explained as prospect of growth present in a particular economy.
Importance of Economic Conditions
Economic conditions are integral part of economic analyses and studies. They give a fair indication of the state of an economy. They are also important in context of economic forecasts. Economists and other entities who make economic forecasts study economic conditions of a country thoroughly before expressing their opinions.
Economic conditions are also important in determining quality and performance of administration that is responsible for well-being of a country. Economy conditions go a long way in showing how a country has been governed. It is normally observed that a properly governed country is in a healthy economic state.
2008 Economy: The Financial Crisis
The financial world experienced a tectonic change in financial year 2008 after economic slowdown led by the US. A number of well known financial organizations like Lehman Brothers closed down and there were other companies that had to take drastic measures like suspending certain business operations or laying off massive number of employees, due to economic crisis. Effects of this global economic slowdown is resonating throughout financial world as a lot of nations do regular business with the US.
Most of countries have been hit hard owing to this global financial crisis. Rates of growth of their economies have slowed down and there are predictions that this situation would continue in coming fiscals 2009 and 2010. As a result a number of countries are announcing economic stimulus packages that are looking to revive economic growth and development.
Business establishments, world over, have responded in, more or less, same ways to ongoing global financial crisis. Most of them have suspended business wings, that have not been profitable, and put new projects on hold. Even reputed companies are being forced into firing large number of their employees or retaining them with significantly reduced salaries. This global crisis has affected consumer spending and caused a sharp decrease in amount of money being spent by people all over world. Worst of all, there is no hope that aforesaid problem would get over in a short span of time.
World Economic Conditions
As per latest news world economic conditions are not in best health as various countries are suffering from aftereffects of global financial downturn that kicked off in United States of America in August owing to problems in their sub-prime mortgage market.
According to latest information on global economic conditions Indian economy is facing a substantial economic slowdown. As per official reports in fiscal 2008 Indian economy has grown at a less than satisfactory as well as expected rate.
Latest news on economic conditions of world has confirmed that China has gone on a tour of four major European nations including United Kingdom. This delegation headed by Chen Deming, Commerce Minister of China met British Secretary for Business, Enterprise and Regulatory Reform. They have signed several contracts of economic co-operation regarding areas like textile material, eco-town building, metal services, motion pictures and airplane and automobile parts.
In fresh reports on economic conditions at world it has been learnt that Barack Obama and Timothy Geithner, who is Treasury Secretary US, are going to lay out a number of reforms that would be aimed at restoring economic parity and introducing some amount of regulations regarding economic activities in US.
If recent reports on economic conditions in world are to be believed, Japan is going through a financial crisis whose stature has not been matched in last six decades. Its trade deficit is huge and its exports have almost become redundant. Its volume of industrial production has gone down by 10 percent as a result of slowing global consumer demand.
Latest world economic conditions report suggests that East Asian economies are facing a tough time owing to global financial crisis. Hardest hit in this region has been employment sector. A number of people working in overseas companies have been laid off.
As per information on world economic conditions exports of Singapore have depreciated at a rate of 35 percent in January 2009 and exports of Thailand went down by 25 percent. This followed a decrease of 15 percent in December 2008. Economy of Thailand has depreciated at a rate of 6 percent in final quarter of fiscal 2008 and it is expected that at end of 2009 fiscal there would be a decrease of 5 percent.