Macroeconomics Essay Example | Topics and Well Written Essays - 500 words - 14

Macroeconomics - Essay Example Statistics have proven that good things are happening in the economic world in various regions. There are strong sales of recreational vehicles made from northern Indiana. The company has recovered and it is being referred to as the ‘white-hot center of the economy’. The CEO of Jayco projects that the industry will tie unit sales records in 2015 and break them in 2016. He argues that this will be due to the rising U.S employment rate and the continued low interest rates. The U.S as a whole is also emerging as the country that will power world growth in 2015. This is because companies such as Google creating more jobs to thousands while in Silicon Valley, Apple is selling tons of iPhones globally (Coy, 2014). The projected turnabout of the American economy is welcomed as a recovery from the financial crisis that was experienced in 2008-09. Major economies in the world such as Japan dubbed the financial crisis â€Å"Lehman shokku† as there was no growth in the global economy. The latest outlook by the International Monetary Fund called the global growth as â€Å"mediocre†. An economist by the name Blanchard views the stagnation of advanced economies remains a concern at this time. Also, emerging markets seem to not grow as fast as they used to without inflation (Coy, 2014). The IMF has projected the losers in 2015 are likely to be Argentina, Venezuela and Brazil. As to the Russian and the Western Europe economies they will be weak. The North America will be pretty solid. Growth is projected to be in South and East Asia as well as in most African countries. It is evident that the global economy is taking longer than expected to recover from the much debt during the last decade. Three year ago IMF had projected that the world economy would recover by 2015 at a 4.8 percent growth rate but to the contrary the expectations has been met only by the U.S. Analyst have argue that the disparity in growth rates among the

Comparison of UK's economic performance with that of Germany for the Essay

Comparison of UK's economic performance with that of Germany for the years 2006-2010 - Essay Example According to the Office of national statistics, UK officially entered into economic recession in 2008, the first time in its history. As a result, the rate of unemployment among the youths rose by 5.4% (ONS, 2011, 41). However, this recession was officially reported to have ended on 26th January, 2010. By May 2010, its economic growth rate was reported to be 0.4%, and 1.2% by the second quarter (ONS. 2011, pg 32). For the last 5 years, the economic indices have been reported to be as follows; Table 1; Changes in UK’s GDP between 2006 and 2010 Year GDP (billions of GBP) GDP change (%) 2006 2.9 2007 2.6 2008 1,448 0.6 2009 1’396 -4.9 2010 1.7 Source: ONS Statistics As the table illustrates, the GDP was worst in 2008 and 2009 because of the economic recession. However, a positive change was realized in 2010. Economy of Germany The economy of Germany is the largest economy in Europe. In the world, it is the fourth largest in terms of nominal GDP, second according to PPT, it is fifth. It is second in world’s exporter, accounting for approximately $1.120trillin in its economy (ONS, 2011, 13). About a third of its national output is realized from exports, thus making its balance of payment favorable, compared to that of UK that is normally characterized by deficits. The service sector accounts for about 70%, industry 29.1%, and 0.9% in the agricultural sector of its total GDP (IMF, 2009, pg 321). Most of its products are from engineering, for an example automobile, chemicals, metals and machinery. In December 2010, German’s unemployment rate was found to be 6.1%, lower than that of UK’s 7.8% (Boyes, 2007, pg 65). In Germany, the lowest growth figures of... The essay is the best example of comparison of German and UK economic performances. These two countries have diverse and strong national economies. UK’s economy is the sixth largest world economy in terms of nominal GDP, and seventh in terms of Purchasing Power Parity. In Europe, it is the third largest in terms of PPT after Germany. The economy of Germany is the largest economy in Europe. In the world, it is the fourth largest in terms of nominal GDP. In 2007, the annual growth rate for UK was at an average of 2.68%, according to the IMF (2009, pg 321). Growth in its financial sector contributed a larger economic part, but this declined in 2008 when it suddenly entered into a recession due to the global financial crisis. This began with the Northern Rock’s collapsing and being taken over into public ownership in February the same year. On the other hand, other banks were also nationalized. Such banks included Royal Bank of Scotland Group, According to the Office of national statistics, UK officially entered into economic recession in 2008, the first time in its history. As a result, the rate of unemployment among the youths rose by 5.4% About a third of the German national output is realized from exports, thus making its balance of payment favorable, compared to that of UK that is normally characterized by deficits. The service sector accounts for about 70%, industry 29.1%, and 0.9% in the agricultural sector of its total GDP In December 2010, German’s unemployment rate was found to be 6.1%, lower than that of UK’s 7.8% In EU, the car industry is oligopolistic, rather than perfectly competitive Germany is the largest motor vehicle producer in EU, and it has become very hard for competitors from other regions to compete with its firms. the fact that the firms have captured reasonable market shares in their respective location has made it hard for other competitors to penetrate and survive in their markets