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The global economic recession is projected to impact the economy of India adversely taking down the GDP for this year according to paper titled “Indian Economic Outlook 2008-09 and 2009-10″ from the Indian Council for Research on International Economic Relations (ICRIER). The authors also argue that “There is real downside risk that the growth rate could plummet to the pre-1980s levels if appropriate countercyclical measures are not taken immediately and are not urgently followed by necessary structural reforms”.

As the recession continues to slow consumer demand, governments across the world are stepping up their of goods and services. This is true in India as well as the chart shows below. The government consumption expenditures as a percentage of GDP is rising faster as the private final consumption expenditure is going down.

For more details on the Indian economy click Indian Economic Outlook 2008-09 and 2009-10

written by David

Yesterday the BLS released the unemployment data for the month of June. A total of 467,000 jobs were lost in June and the unemployment rate remained almost the same at 9.5%.

The Eurostat also released the unemployment report for the EU but for the month  of May. The unemployment rate in the Euro area stood at 9.5% seasonally-adjusted in May .In the expanded EU 27 states, the unemployment rate was 8.9% in May.An estimated 21.462 million in the EU27, of which 15.013 million were in the Euro area, were unemployed last month.

The lowest unemployment rates were in:
The Netherlands - 3.2%
Austria - 4.3%

The highest unemployment rates were in:
Spain - 18.7%
Latvia - 16.3%
Estonia - 15.6%

While the EU unemployment rate was 9.5% in May, the rate in the USA and Japan were 9.4% and 5.2% for the same month respectively.

Source: Eurostat

written by David

Source: Broad Money Demand and Asset Substitution in China, Ge Wu, IMF Working Paper

written by David