The Economy blog

The economic data of the country of China is clearly showing that there is a decline in the consumption of energy. The authorities stand by the fact that the country is having an economy change rather than economy contraction.

For several years now, the electric consumption in China is being used as the point of reference when it comes to the industrial activities in the country. However, if analysts would still use this as the benchmark, there is a possibility that they can be misguided. The economy of China is currently shifting into rendering services instead of manufacturing which requires intensive use of energy. This is according to the comments made by the National Bureau of Statistics.

While everyone in United States, UK, and other parts of the world are keeping their money safe inside their banks or at home, some people are willing to spend tons of dollars (or whatever their currency is) which would help in the improvement of the global economic crisis.

In Asian countries, particularly China, economists and analysts said that they will be spending a lot more of what they are keeping. Today, it is actually higher than their typical everyday expenditures. However, the savings rate today at the booming market is still expected to slide down by as much as 5 percent. Nevertheless, the consumers in Asia will add more than $900 billion to the global economy every year.

China surplus is one of the leading factors why Asian countries are willing to shell out some of their savings which would help in improving the current financial turmoil.

The CIBC World Markets recently gave its predictions about the status of the economy on the following years. In the next 8 to 10 years, they said that the economy’s behavior can be compared to the behavior of an ill-tempered teenager.

The financial sector is likely to be very unstable and very erratic as well. But after a decade, it will become mature and will eventually become more capable of handling a turmoil. This is also the same view of Benjamin Tal as well as Avery Shenfeld, two of the most popular economists.

And just like the teenagers, there will also be tons of drama in the next few years of financial crisis. It can be seen in the form of the Canadian dollar (rate increasing), inflation in the U.S. economy, higher price of the resources, higher equity, weaker market bonds, and so much more.

Although there are still debates regarding the Employee Free Choice Act, people should still remember the real essence of this bout. And this is to give the employees the right that they deserve especially when it comes for their future and moving on to a better life. According to Mike Allen in his editorial section of the Bangor Daily News, the Employee Free Choice Act will allow them to have all the help that they (employees) need so that they can get a better life despite the economic recession.

It is not just the low-wage earners who are supporting the Employee Free Choice Act but the middle-class and the other high-earning workers at the same time. The said act will actually allow the workers to create a union that is no longer controlled by the process of the company where they are working.

Governments of some of the most powerful countries all over the world recently announced that their economies are now experiencing major contractions particularly the past few weeks. This includes Japan and United States. Moreover, their statements about the Q1 or the first quarter income of their economy also have one thing in common – great reduction in the income when compared to the Q1 of 2008. Even without the help of the experts, one can immediately understand that this is a real sign that the global economic crunch is getting worse.

But with all the news that the economy is now trying to get back on track and up on its feet, many people are becoming more and more confused regarding the real deal about the economy. Do you think that the economy all over the world is really enduring all the punches that health, finance, medical, etc., has to throw?

If consumers like you are really feeling comfortable about the way things are currently going, it is likely that you would be spending more money right now. Unfortunately, most of us still think that the global economic crisis is still declining and currently on its way to a huge freefall.

Today, almost everybody on Earth is troubled about the H1N1 virus or better known as the Swine Flu which started from Mexico. After the boom of the news, deaths of numerous people in the country due to the said virus, and the spread of the fear in other parts of the world, how’s the economy of Mexico today?

It was only last week when Mexico announced that they had a major decline and they already felt it during the first quarter of 2009. It became worse when the breaking news about the swine flu hit the media and baffled the investors, tourists, and everything else that increases the income of their economy. As a matter of fact, Mexico’s income during the Q1 decreased by as much as 10 percent when they compared it to the income that the country had a year ago during the same quarter.

They are now hoping that the thriving tourism industry (as well as investors) will still survive despite the paranoia of the swine flu. The tourism industry is one of the biggest contributors in the economy of this third-world country.

During the past few months, everyone has been talking about the global crunch and how it affects the different industries around the globe. Powerful countries that are mostly located at the West are now experiencing a major decline in their economy. The question is, will they be strong enough to maintain their economic power after a few years?

Experts said that this “economic power” is now shifting from the countries in the West to the countries located at the East. Don’t believe it? Here are some facts that would make you think about the next best location where you could invest your money.

• · Brazil – now becoming popular in the field of agribusiness as well as explorations in offshore energy sources.

• · China – the industry of home appliances, steel, and the telecommunication equipments is now flourishing.

• · India – there is a booming business in this country related to auto parts, pharmaceuticals, and of course IT services.

• · Russia – is now turning into a major source of metals and energy sources as well.

Now don’t you think it’s time to move East?

With the skyrocketing prices of the petroleum products today and all the talks about going green, many are now considering the benefits of sustainable energy. But would it really have effect in this already troubled economy?

Rather than importing fuel or energy resources from other countries like Dubai, the nation would only depend from the renewable energies such as solar, wind, and water. It will cut the expenses for importing and would just have to depend on the easy-to-construct panels and turbines. As a result, the cost for the electricity expenses will also be reduced by as much as 50 percent. Aside from that, it would also create a lot of employment opportunities since jobs are related to energy efficiency would open. There will be more investors that would help improve the distressed economy.

The effect of these renewable energies would not create a big impact on the economy of the whole nation immediately. Instead, it could be felt on the local economies first. But before it can become a sustainable energy economy, the officials as well as the locals must give their full commitment and support.

Last Tuesday, the Chinese stocks in the light trade increased by as much as 1.49 percent. This includes the shares in the steel coal as well as real estate properties. However, there are still doubts whether if this improvement would continue and help the economy of China on its way to recovery.

The shares of the Shanghai A beat the others ending with 792 shares compared to the 124 of the competitors. However, investors were still confused and trying to be very cautious since they got mixed signals as well as diverse economic data for the month of April.

According to the analyst of Zheshang Securities, Zhang Yanbing, the increase in the China stocks is because of various factors. They were very happy to see that there is an improvement in the real estate sector last month. There is a 0.2 percent increase last March in the said industry and the development raised to 0.4 percent last April.

In Britain, the blue chip index of the country decreased by as much as 0.6 percent recently. One of the main factors to blame is the weaker prices of the raw materials which take toll on the miners and the oil producers at the same time. However, both Centrica as well as AstraZeneca were offering their support despite the index’s plunge.

Last week, the FTSE had an increase in points by as much as 5 percent. Unfortunately, their points fell down by 26.59 points closing at 4,435.5 only.

One of the most renowned sales traders of the IG Markets said that the rally for the past few weeks was the major influence for the corrections that they recently had. Philip Gillett eve said that they are thankful because they thought that the corrections would be more serious. They are also hoping that there would be improvement in the weakening economy of UK in the next weeks.