Economy – overview

Economy – overview

[edit]2006 - USA leads expansion

The economic output of 178 markets expanded by $3.9 trillion during 2006. USA accounted for one-fifth while China accounted for one-ninth of the global output expansion. The economic output of 5 markets contracted by $193 billion. Japan accounted for almost all the global output contraction.

[edit]2007 - China leads expansion

The economic output of 182 markets expanded by $6.3 trillion during 2007. China accounted for one-eighth while the USA accounted for one-tenth of the global output expansion.

[edit]2008 - credit crisis begins

The economic output of 171 markets expanded by $5.8 trillion during 2008. China accounted for one-sixth of the global output expansion. The economic output of 11 markets contracted by $267 billion during 2008. UK accounted for one-half while South Korea accounted for two-fifth of the global output contraction. Though the crisis first affected most countries in 2008, it was not yet deep enough to reverse growth.

[edit]2009 - credit crisis spreads

The economic output of 132 markets contracted by $4.1 trillion during 2009. However, UK was the largest victim accounting for one-eighth while Russia accounted for one-tenth of the global output contraction. The economic output of 50 markets expanded by $781 billion during 2009. China accounted for three-fifth while Japan accounted for one-fourth of the global output expansion.

[edit]2010 - IMF forecasts recovery

The economic output of 138 markets is expected to expand by $4.6 trillion during 2010. China is expected to account for one-sixth and the USA is expected to account for one-ninth of the global output expansion. The economic output of 44 markets is expected to contract by $498 billion during 2010. Despite bailouts, France is expected to account for one-fifth, Spain is expected to account for one-fifth, Italy is expected to account for one-sixth of the global output contraction.

IMF's economic outlook for 2010 noted that banks faced a "wall" of maturing debt, which presents important risks for the normalization of credit conditions. There has been little progress in lengthening the maturity of their funding and, as a result, over $4 trillion in debt is due to be refinanced in the next 2 years.^[1]`