Far-reaching economic recession

In mid 2008 we could deal with the economic recession in the global ratio. There are important factors, which are the cause of this economic slowdown. These include oil prices, which would lead to high food prices. Whereas that food production is dependent on the production process and the process of transport on oil. This will be combined with the credit crisis and increasing unemployment.

Already in January 2008, the International Monetary Fund (IMF) predicted that global economic growth will decline. It would be greatly influenced by the United stated of the economy.

The IMF had mentioned that the economic recession in the United States will be affected significantly the conditions on the financial market and the ongoing correction in the housing market in the us. The IMF predicted that the United States will have a mild recession in 2008, but will recover, although modest, in 2009.

Meanwhile, global growth in 2009 to achieve a small recovery, is a 25% probability that the global economy would record 3 percent or less, the growth in the years 2008 and 2009. It's no longer like to say that the world will meet a recession.

The United Nations also predicted the same thing happens. According to the UN, the world economy was a remarkable growth in 2007. There are more than 100 economy tat report shall be increased by 3 percent. Meanwhile, developing countries also show that promises. The average economic growth in developing countries was nearly 70 percent.

But the United Nations Conference on trade and development said that there is a clear disaster or a danger to world economy stalled in 2008. The UN report noted that this economic stabilisation will hit many poor countries, and would certainly end the boom in economic growth.

The United States, the economic downturn in 2008 will dramatically affect the global economy. It is one of the largest economy in the world. Reckless practices brought about by the impending recession in the US; no backup, no verification of income/assets/points of interest rates of mortgages, negative amortization, and riddles. Roughly 50 to 60 percent of the loans made by banks were carried out by these reckless practices.

Not only are the economic recession in the United States. European countries are also affected by the economic slowdown. It was confirmed that Denmark is in recession. Economic growth in Denmark declined by 0.6 percent in the first quarter of the year. While Estonia and Latvia in the second quarter of the year into a recession. While Sweden has shown zero growth in the second water, 2008.

The British economy is also affects the rising prices of oil and the credit crisis. Telltale signs that the British economy into a recession, when the real estate market declined in 2007. In the next quarter real estate market fell twice its former character. At present, economic growth in the United Kingdom is zero. It would be in addition to the negative economic growth, which is in the second quarter of 1992. The current slowdown is over 16 years of continuous growth, the longest period of economic expansion in Britain since the 19th. of the century.

The economic crisis is also going on in New Zealand, whose economy growth declined by 0.3 percent. Meanwhile, in Australia, consumer confidence fell to a 16-year low economic growth in July. South Africa were warned that it will enter a recession this year. Japan has experienced a decline in economic growth, for the first time in five years. In the meantime, reduce economic growth in Canada in the first quarter of the year.