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White House calls for intensified export efforts to heighten economy

June 29, 2011 By roel Leave a Comment

President Obama’s administration emphasized the importance of having strong export efforts for the recovery of their economy and also for competitiveness on a global scale.

President Obama also stated that the federal government should find ways and means to promote U.S. exports and other products. The President also noted that it is also very important for them to implement trade agreements and work to make certain that businesses in the United States can compete with other businesses in the word. The country should also be very consistent with global trading rules according to the 2011 National Export Strategy released by the U.S. Commerce Department.

The President also pointed out the value of the National Export Initiative to increase U.S. exports towards the end of 2014, which was actually announced by the Obama administration.

The U.S., being one of the most powerful countries in the world in terms of economy is now in a very slow pace and the administration is really doing their best to heighten their efforts in developing their economy through investments and exports.

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Standard Chartered: In 2030, India could be the third largest economy in the world

May 28, 2011 By roel Leave a Comment

New Delhi: Standard Chartered, the global banking giant said that India could be the third largest economy in the world by 2030 due to its very strong domestic demand and its demographics.

But Standard Chartered also noted that in order for the country to achieve the said economic success, it needs to sustain its reform agenda.

Last year, the major economies in the world were the USA with $14.6 trillion, China with $5.7 trillion and Japan having $5.4 trillion. India did not even make it to the top ten, as per International Monetary Fund data.

StanChart believes that India will definitely be at the number three position by 2030 behind China and the US, with an estimated economy of $30.3 trillion.

This will be made possible by India’s demographic advantage. The country has half of its population aged below 25 years old, so the increasing per capita will guarantee India’s economic success.

StanChart said that India has all the potential to catch up with China and the rest of the developed world.

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President Nazarbayev of Kazakhstan insists on concentrating on post-crisis recovery

May 4, 2011 By roel Leave a Comment

1st News Rewrite 4May2011

A meeting was held recently headed by Kazakh President Nursultan Nazarbayev on the international community to concentrate on post-crisis recovery.

President Nazarbayev indicated that the world economy is presently facing loads of problems when it comes to financial, industrial innovation and commodity sectors.

The Kazakh president also pointed out that in order for the people to achieve innovation there should be a balance between development of economies and fair trade.

“Realizing the existing crisis potential and learning lessons from the past, we should start tackling the challenges and long-range objectives of the world economy in the second decade of the 21st century.” President Nazarbayev said during the fourth Astana Economic Forum.

“The current financial system does not meet the principles of legitimacy and fairness, impedes growth and hampers resolution to global problems,” Nazarbayev continued.

Furthermore, according to President Nazarbayev the commodity sector should be able to supply the world with energy and food safety, since this is something that every person on the planet needs, and not just a number of companies and governments.

It was in 2008 when the Astana Economic Forum was established, this group’s main focus is on key issues with regard to the development of the global economy.

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The G20 Moves Towards a Future of Economic Stability

April 16, 2011 By roel Leave a Comment

The world may be recovering from the massive financial crisis of 2007 to 2009 faster than expected, but the challenge now lies on each country to make it certain that this will never happen again.

With this in mind, some 20 countries signed an agreement that would study if they had a role in crippling the economy of each and every country in the world.

This is the reason why all the members of the G20 could be scrutinized with regard to their policies at the economic front, but there are 7 countries that would be assessed closely and would also be in a tight supervision. These countries are the U.S., Japan, Germany, China, France, the U.K., and India.

These said countries will be under surveillance on the pre-defined boundaries that include trade policies, deficits, economic schemes, budgets, savings earned, and so on.

What is great about this mutual agreement is that it is not mandatory but voluntary, so each nation knows what they signed up for. And if during the close watch a certain country would be found guilty for the erroneous policies at the economic front, then the said nation will be recommended to follow the measures on how they can make amends and resolve the protocols.

It was also made clear that this whole project is not to confront any of the country that would be found guilty but instead help out and find some solutions to bring stability in the economy.

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China embraces G20 managing the global economy

April 2, 2011 By roel Leave a Comment

China welcomes the help of the G20 in playing a greater role in terms of spearheading the global economy. This was confirmed when all financial ministers and central bank officers met in Nanjing, Jiangsu, China, just recently.

Spokesperson of the Foreign Ministry, Jiang Yu, announced China’s support to France, as they lead the G20 summit in Cannes, France, towards the end of this year. China is very willing to strengthen its relationship with France in the preparations for the said summit.

French President Nicolas Sarkozy and Timothy Geithner, the US Secretary of the Treasury made a suggestion at the meeting in Nanjing to establish a more flexible foreign exchange system and the expansion of SDRs or the special drawing rights, while keeping the USD and Euro stable. Further, Sarkozy said that the FOREX system should be more flexible, but he also said that the whole system would not function without rules and supervision.

Sarkozy also called for an expansion of the SDRs to the currencies of emerging economies just like the Chinese Yuan, from the present US dollar, JPY, Euro and British pound sterling.

In 1969, the IMF or International Monetary Fund created the SDR under an initiative by 10 Paris Club members to become a monetary unit of international reserve assets.

The aim of the SDR is to supply the member nations with an extra financial resource to keep foreign exchange rates constant against domestic currencies and control the use of USD and gold as the only international payment tools facilitating international payments in this way.

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Trading Out of Danger

April 1, 2011 By roel Leave a Comment

In the next two years Dubai is looking at a very good economic growth but since it has been open to global trade ever since, Dubai can also be in trouble if the world will experience another global economic crisis.

This was the scenario given by the government of Dubai as an investigation to the emirate’s economic prospects.

The chief economist for Dubai’s Department of Economic Development, Mohammad Lahoulel, used the Dubai Economic Outlook 2011 in saying that Dubai’s economy will definitely grow by at least four per cent this year.

Farouk Soussa, Citibank’s chief economist, actually gave a prediction and he was more optimistic in saying that Dubai will have more than four percent growth. Instead, Dubai will have a six per cent increase by next year.

But since Dubai’s open economic model is very similar to that of Hong Kong and Singapore, it is also at risk whenever other countries experience or suffer from economic meltdown.

The experts also agreed that Dubai could experience some difficulty in terms of oil prices increased because of the regional unrest.

Marios Maratheftis, regional head of research at global bank Standard Chartered, concluded that people in Dubai do not need to fear that investors would withdraw since this is already eased, and that Dubai, as well as Abu Dhabi and Qatar are places which investors could still feel safe compared to other places.

Filed Under: Global Growth Generators Tagged With: , ,

China confronts pressure from the global trade due to their low-carbon economy, according to experts.

March 24, 2011 By roel Leave a Comment

According to an academic report, China is said to be confronting pressure from the imbalanced global trading mode because of their low-carbon economy.

Experts coming from different research institutions in Japan, the United States and in China stated that China should find more increased involvement in the global division of labor. This was discussed during the Annual Report on China’s Low-carbon Economic Development.

The study also showed that such situation would only benefit developed countries with brands, channels, technologies and market advantages, and not the developing countries, especially those that are stuck in low-end manufacturing.

Another problem, according to the report, that could result from China’s development of low-carbon economy is the rise in the use of coal in their energy consumption, lower efficiency in energy use, and the escalating number of people in the urban areas.

If China would hold on to their principle of upholding economic growth by setting growth-backed emission reduction targets, then this could be a good idea.

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Global Economy Shaken after Japan’s Catastrophe and the Mideast Crisis, According to Tharman

March 21, 2011 By roel Leave a Comment

SINGAPORE: Due to the natural calamities that hit Japan recently, a heavy blow can be expected to the world’s economy, according to Tharman Shanmugaratnam, the Singapore finance minister, during the World Bank Conference in Singapore on Monday.

Furthermore, Mr.Tharman explained that this disaster that Japan is facing right now is not like what happened in Kobe 16 years ago, since this catastrophe now also includes the fear of the nuclear reactors in Fukushima.

And as Japan starts rebuilding the stricken areas, there is a possibility of a very high increase on oil, gas, and some metals, specifically steel, Tharman further elucidated.

The Singaporean finance minister also added that since the US and Europe are still trying to put back the pieces after the economic crisis and with the continuing rise in inflation in East Asia, all of these will result to a tighter macro economic policies in the succeeding years.
Mr. Tharman also noted, with all these crises, people can still manage to avoid them but people should also expect the expected. And lastly, Mr. Tharman said that although this problem will not be as huge as the Lehman crisis, there would still be some enormous changes in the world’s economy.

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Washington Fiddles amidst a Great Threat in the Global Economy

March 19, 2011 By roel Leave a Comment

With the ongoing civil war in Libya and all the hostilities in the Middle East, the world saw crude-oil prices skyrocket. Prices of basic commodities, specifically food also soared due to poor harvests all over the world. And now with Japan’s earthquake, tsunami, and radiation problems, all of these threaten price hike across the board.

Americans are still struggling with the economic crisis that just hit the world and having to bounce back from unemployment and all the other conflicts, these could be too much to handle.

Before all of these happened, the USA is already experiencing a very difficult time. More than 10 million American men and women are still unemployed, and the economy is really in an all-time low.

People in Washington are surprisingly talking about how to cut $10 billion or $ 61 billion from the federal budget before September 30. Some people are just trying to find ways how people would put all the blame on the Obama administration, as it is the most convenient thing to do, just placing all the blame on the one in-charge.

The economy of the United States of America is playing with another economic downfall in the midst of a very troublesome global economy with majority of the American citizens still under pressure.

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India – The Number One Economy in the World by 2050, According to Citi

March 19, 2011 By roel Leave a Comment

According to the latest report of Citi with regard to the Global Growth Generators, India could be the number one economy in the world by 2050, going past China and the US.

As reported by Willem Buiter, one of the economists of the Citigroup, the US would lose its number one position to China by 2020 as the largest economy in the world, and then China would be surpassed by India three decades after.

With India’s average real GDP growth rates of 4.6% pa as of the moment until 2030 and 3.8% pa from 2030 to 2050 – the GDP would definitely increase in real PPP-adjusted terms from USD 72 trillion last year to USD 380 trillion in 2050. The country could definitely expect a great increase until 2050.

Furthermore in the report, the most regions that are showing a lot of potentials are the developing Asia and Africa, two areas backed up by the number of people and the income per capita growth, the two regions are followed by the Middle East, Latin America, Central and Eastern Europe the CIS, and lastly the first-world countries today.
Other Global Growth Generators countries that are also expected to ascend because of their promising per capita are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and Vietnam.

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