The Economy blog

The current economy of United States is now obviously weaker compared to its economy decades ago. The rate of jobless people increases every month. United States is now at a high risk for a second recession as soon as Obama’s stimulus act is over.

Even though it is possible that there will be a moderate growth by the fourth quarter of 2009 until the early quarter of 2010, the global credit crunch will still leave the investors, business owners, and the rest of America unwilling to spend or even borrow the way they did few years before the economic recession started. As a result, this would lead to another crisis in the economy.

By the time that world experienced the first hit of economic crunch, many analysts and economists thought that it would be the country of China that will feel the toughest hit of the recession in Asia. This is because China gets most of its revenue and depend a big part of their income from exporting products going to the western countries.

But it was not China that is now considered as the Asian country that had the biggest blow from the global economic crisis. Surprisingly, it is Japan – the country in Asia that is considered as the number 1 ally of United States in the said continent.

The GDP of Japan decreased by as much as 16 percent. How did this happen? More than half of the country’s economy relies on manufacturing electronic devices, cars, and alike to other countries including U.S. And because there is a decline in the number of consumers purchasing their products, the production also slowed down as well.

Today, the infamous car manufacturing company already temporarily closed its plants in Japan for 41 days so that they can slash expenses and inventory. Aside from that, Sony is also laying off more than 10,000 employees in the country at the same time.