Many individual countries are now in recession, and the world economy is flagging badly. Leading economic organisations and business leaders are talking about “a global recession”.
First it was the US who experience recession because of financial crisis, all businesses goes down leading to bankrupcy…leading to unemployment. Many people nowadays need jobs, so the government needs to do an action, find alternative to find jobs for the jobless people.
Next to this is the UK, Japan and all other giant countries are now experiencing recession. People are asking why is this happening, where does it begin, We all know that this giant countries is where job is, where you earn money, we never expect that this will occur. Economist expect a deeper recession and all of the countries in world will feel the deeper recession.
The International Monetary Fund says that the global economy is set to decline by 1.3% in 2009 , in the first global recession since World War II. Other economies are expected to shrink more. Currently, output is falling by a parallel rate in the rich economies in the last quarter of last year and the IMF expects the same rate of downward in the first quarter of 2009. But sad to say the dropping of economies is really drastic. Only a recovery in developing and emerging market countries wil drive forward the world economy back into positive growth.
What we need to do now, rich countries needs to face the burden of decreasing their budget defecits which have soared during the crisis, ageing population need to reduce their tax revenues and households needs to reduce previous spending habits.