Pouring in of all bad news
Monday, 29 December 2008
Fazle Rashid from New York
THE global economic downhill slide will linger well beyond 2009, the analysts and market watchers are predicting. The economies of the major global powers like the US, China, Japan, European Union (EU), most of Asia and Arab nations are contracting with no sign of abatement.
Senior officials in China, the second biggest economy after the US are urging public sector enterprises to considerably expand its dominance in the economy to stave off cooling growth and plummeting profits. The private sectors enterprises are complaining that government bailout packages for the state-owned enterprises have put them into great disadvantage. The government has made fresh infusion of renminbi to loss incurring state airline while country's sole private sector airline has been forced to suspend its services.
Japan suffered a 8.1 per cent month-on-month decline in industrial output in November. The unemployment figure is rising, household spending, like in the US, is diminishing. The pouring in of bad news will create pressure on government to do much more than announcing a $976 billion dollar for the next fiscal year beginning in April. Japan's economy will not regain its robust health until there is recovery in demand from key export markets like, the US, China and the EU.
Dubai, where bulk of Bangladeshi labour force is employed, like Japan is planning an " expansionary budget " to stimulate a weakening economy and come out of the global economic meltdown. The public spending is being projected to be 20 per cent higher than in 2008. Saudi Arabia, the largest economy in the region had earlier announced it too would increase public spending in 2009. Both the nations are trying to allay fears that once booming economies have been badly mauled by the global credit crunch, oil price.
THE global economic downhill slide will linger well beyond 2009, the analysts and market watchers are predicting. The economies of the major global powers like the US, China, Japan, European Union (EU), most of Asia and Arab nations are contracting with no sign of abatement.
Senior officials in China, the second biggest economy after the US are urging public sector enterprises to considerably expand its dominance in the economy to stave off cooling growth and plummeting profits. The private sectors enterprises are complaining that government bailout packages for the state-owned enterprises have put them into great disadvantage. The government has made fresh infusion of renminbi to loss incurring state airline while country's sole private sector airline has been forced to suspend its services.
Japan suffered a 8.1 per cent month-on-month decline in industrial output in November. The unemployment figure is rising, household spending, like in the US, is diminishing. The pouring in of bad news will create pressure on government to do much more than announcing a $976 billion dollar for the next fiscal year beginning in April. Japan's economy will not regain its robust health until there is recovery in demand from key export markets like, the US, China and the EU.
Dubai, where bulk of Bangladeshi labour force is employed, like Japan is planning an " expansionary budget " to stimulate a weakening economy and come out of the global economic meltdown. The public spending is being projected to be 20 per cent higher than in 2008. Saudi Arabia, the largest economy in the region had earlier announced it too would increase public spending in 2009. Both the nations are trying to allay fears that once booming economies have been badly mauled by the global credit crunch, oil price.