World GDP
Description
World GDP
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
The World Bank cut its 2008 global growth forecast to 2.7%, citing rising food and oil prices, the bank announced Tuesday. In January 2008, the bank predicted that global growth would total 3.3% for the year. The global economy grew 3.7% in 2007. Further, the bank now sees 2008 emerging market GDP growth totaling 6.5%, down from its earlier 7.8% forecast. The bank called high energy and food prices "a major worry" and added that they "are the dominant force behind increased inflation across developing countries." Also, the World Bank expects the U.S. economy to grow 1.1% in 2008, a downward revision from the bank's earlier 1.9% forecast. Meanwhile, the bank expects Europe's 15-nation euro zone to grow 1.7%, down from the earlier estimate of 2.8%. Japan's economy is expected to grow 1.4%, down from the earlier estimate of 2%. Further, the World Bank also sees a considerable slowdown in China's economy in 2008, but GDP growth is still expected to remain very strong. The bank now sees China's GDP increasing 9.4%, down from the earlier 11.9% estimate. Economist David Wang said the World Bank's revised forecast is consistent with other country-specific data he's viewed. "We see this general slowing in global growth precipitated by the slowdown in the U.S. economy and the brake effect of high oil prices," Wang said. Wang predicted that oil prices above $100 per barrel would lower 2008 global growth by 0.3-0.7 percentage points, to 2.5-2.7%. (Wang added that he doesn't have a global growth forecast model with an implied $130 per barrel oil price because he "never thought oil prices would reach that level so soon.") "The global economy will grow well below capacity in 2008, and 2.7% is about as low as one wants to go for a world made up mostly of emerging markets," Wang said. "Anything below that and we're approaching the equivalent of a stall in the global economy."
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.
Enabler
- Growth of emerging market
- Balanced economic policy in each country
- Sustainable policy and economy
Inhibitor
- Corruption of emerging market
- Unstable world political movement
- World recession
Expert
- Economist
- World Bank
- Expert in Finance Sector
Resource
- http://www.imf.org/external/datamapper/index.php
- http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
- http://www.indexmundi.com/world/gdp_real_growth_rate.html
- http://www.economywatch.com/gdp-growth/world-gdp-growth/
- http://www.economywatch.com/world_economy/world-economic-indicators/world-gdp.html
- http://www.bloggingstocks.com/2008/06/10/world-bank-cuts-2008-global-gdp-growth-forecast-due-to-oil-food/