World GDP Growth
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About world GDP growth
Concept of world GDP growth could be explained as increase in gross domestic product of all economies in world. It is important for well-being of global economy that world GDP growth takes place on a wide scale. Normally though, it has been observed that rate of growth of world GDP is not uniform in all countries.
Much of irregularity in world GDP growth could be attributed to economic methods that are adopted by governments of respective economies. A positive world GDP growth is regarded as an encouraging sign for that particular economy and a negative world GDP growth is regarded as bad. In a way, negative world GDP growth rates are useful as they highlight problems in global economic scenario and show avenues where repairs should be done. This allows an economy to identify its weaknesses and work on them with a purpose of improvement.
World GDP growth in 2008
In financial year 2008, entire monetary world has been affected by a terrible financial crisis that has claimed many victims in form of financial organizations and economies. As a result of this disastrous economic catastrophe, rates of growth of gross domestic product have gone down all over world. However, rates of decrease have not been same everywhere. There are certain countries that depended a lot on their transactions with United States of America, where this problem started and they were first to be affected. Examples include India and Singapore.
There are other countries like United Kingdom and Australia where effects are not that prominent as well, but governments of these countries have been expecting financial crises, of such magnitude, and have been, more or less, better prepared to handle such problems. Thus their gross domestic product growth rates have not been as badly affected as other countries.
World GDP growth predictions for 2009-10
Economists have predicted that in financial years 2009 and 2010, growth rates of world gross domestic product would come down. They have opined that it is an inevitable after effect of, perhaps, greatest financial crisis after Great Depression of 1940s. There are some countries like Singapore and Philippines, which are officially facing recession and for others too forecast is not exactly bright either.
