Global Recession and Its Impact on Pakistan Economy
Global recession and its impact on Pakistan economy
Presented by
HASSAM TARIQ
Abstract
There has been speculation that American would lead global recession and it could impact the global economy. IMF also predicted that in 2008 global growth would fall from 4.9 percent to 4.0 percent. US economy suffered thousands of layoffs and the biggest retail sales dip on record. Strong economies as that of UK, Germany, France and the new emerging one’s like China and India also fell pray to this recession. Rising prices of oil and different commodities along with the credit crunch majorly contributed to the recent turmoil. The crisis of the sub-prime mortgage market also played its part.
The impact of this slowdown on the developing countries might not be as severe on the developing countries as to the developed countries but still there would be spillovers. So far Pakistan has escaped the recent economic turmoil emerging from Unites States and its main reason is that our economy is too week to shape in global matrix. Though Pakistan economy has not been affected up till now, the investors, driven by fear are taking there investment out. This is leading to the appreciation of a rupee as well as the depletion of foreign reserves which is causing further problems for Pakistan.
Whether we are entering a recession or not is no more a question. The government must take proper fiscal measures for the short run and long run to overcome this slowdown and stabilize the economy. Keeping the check on the oil prices is the most important issue and should be carefully handled in the world politics.
Introduction
A slowdown or fall in the rate of economic growth; a recession is defined by the US National Bureau of Economic Research as a decline in gross domestic product in two successive quarters. A severe recession is called a depression. Recession is associated with falling levels of investment, rising unemployment, and (sometimes) falling prices.
The economy goes through
Presented by
HASSAM TARIQ
Abstract
There has been speculation that American would lead global recession and it could impact the global economy. IMF also predicted that in 2008 global growth would fall from 4.9 percent to 4.0 percent. US economy suffered thousands of layoffs and the biggest retail sales dip on record. Strong economies as that of UK, Germany, France and the new emerging one’s like China and India also fell pray to this recession. Rising prices of oil and different commodities along with the credit crunch majorly contributed to the recent turmoil. The crisis of the sub-prime mortgage market also played its part.
The impact of this slowdown on the developing countries might not be as severe on the developing countries as to the developed countries but still there would be spillovers. So far Pakistan has escaped the recent economic turmoil emerging from Unites States and its main reason is that our economy is too week to shape in global matrix. Though Pakistan economy has not been affected up till now, the investors, driven by fear are taking there investment out. This is leading to the appreciation of a rupee as well as the depletion of foreign reserves which is causing further problems for Pakistan.
Whether we are entering a recession or not is no more a question. The government must take proper fiscal measures for the short run and long run to overcome this slowdown and stabilize the economy. Keeping the check on the oil prices is the most important issue and should be carefully handled in the world politics.
Introduction
A slowdown or fall in the rate of economic growth; a recession is defined by the US National Bureau of Economic Research as a decline in gross domestic product in two successive quarters. A severe recession is called a depression. Recession is associated with falling levels of investment, rising unemployment, and (sometimes) falling prices.
The economy goes through