Asia has been the site of growth in the past decade. But in the coming years Asia is going to slow down. China’s economy has grown with sluggish rate past year, and the Future is not so bright.
Lack of demand locally, political instability and terrorism has led to uncertainty in policy making. Major development is the slump of Hong Kong, Indonesia and Singapore.
China which was the driving force in the past decade with double digit growth. However growth of this degree is not going to continue. It is the same old property market crash that is responsible for the slowdown in China.
Distress in Chinese Economy
In this bleak scenario, there is a silver lining. The South East Asian economy led by India is going strong. It is not big but signals are of growth. India is experiencing an increase in growth by 15% as compared to last year. The markets are growing with a stable government in India. Exports have shown a double digit growth in all major nations of the region. Many countries like Bangladesh are really picking up. Sri Lanka is showing continued strong growth at 8.2%. India in a major policy shake up has US supporting with export policy relaxation. Infrastructural growth is picking up leading to major investors drawn to the area. So Asia will have a flat growth. But the encouraging factor is that the region as a whole will continue its upswing. The only worrying factor is China. The major worry for China is the Property slowdown which can be taken care of by changing the credit policy. So, fasten you seat belts the bump is coming!!!!!
Theresa May’s recent antics have caused quite a buzz around town. The National Union for Students is staunchly against her wishes to send international students back home after finishing their education without getting a chance to find work within the country, and many international students have expressed their discontent too.
This discontent stems from the fact that international or Non-EU students contribute quite a lot to the UK economy every year, and they do deserve to find work in the country. First of all, non-EU students pay higher fees to study here- UK is supposed to have received about £8 billion through fees from non-EU students alone. Besides this, international students’ expenditure outside the university contributes about £3.8 billion to the economy.
Besides this, non-EU students are supposed to have generated about 20% of the output in the higher education sector, and they continue creating new jobs every single year. Not only is it a bad idea to provide education to a set of people and then turning these qualified individuals away from the country an ethical bad idea, it is a bad idea for the economy too. A lot of non-EU students have reported feeling unwelcome in the UK, and such laws are not going to encourage feelings of goodwill towards the country, either.
A lot of people are still out of the loop about the situation in Greece, and it is understandable. It is not that easy to explain just what has happened to Greece that has sent it spiraling down the economic drain for the past few years.
It can be traced back to the Greek government offering pay-rises to government employees, who formed about 1/5th of the country’s working population. The Greek government did not have a very stable or strict regimen of debt collection in place, which made things worse, for more money was going out of the government’s treasury than the income. At this point, the government turned to other countries of the EU, who were ready to provide Greece with the loan necessary. EU regulations required the deficit of a country to remain around 3%, and at that point Greece reported a deficit of 3.4%.
However, when the new government came into force in 2010, it was revealed that the old government had reported the wrong numbers. The economy was much worse than the other countries in the EU expected, and Greece now owed billions of euros to the other members of the EU. In order to repay these loans, they had to take further loans, sending the country into even deeper debt. The Greek economy, since then, has been taking a number of austerity measures to control spending and reduce borrowing, but it is expected that the economic condition will stay this sore at least till 2020.
I often wonder what will happen in the coming years with all of the unbalanced economic activity in the European Union. We have so much to think of moving forward, and we are not alone with North America having similar issues. The welfare minister mentioned that disabled people should be paid less than minimum wage. We have this kind of ongoing politically sensitive topics continually coming to the forefront in both Europe and North America as the fights for minimum wage increases goes on. Many of the jobs and pay that disabled persons are performing are supposed to help them move into regular employment and there are training programs with this intention. It’s interesting we keep hearing about companies taking advantage of marginalized groups at the expense of their monthly wages.
Many of these people end up using money loans, like Ferratum UK, which helps provide financial assistance to people when times are tough.
I wonder if we will ever make universal headway into these sort of labour disputes, or will it all be pushed overseas where law is less enforceable. One can only hope that in the future we have the opportunity to change the way we discuss these kind of issues and make some real headway into a dialogue on minimum wage jobs.
As the date for the Scottish independence referendum draws closer, there has been continued debate over whether Scotland will retain the pound. It feels like there is an increasingly heavy voice coming out of Westminster warning Scots that a vote for independence will be a vote to lose the pound.
But will this hold any sway with the Scottish voters? The mood of the Yes campaign seems heavily based around the heart strings, with little talk of practicalities – after all people are led to believe that Scotland can survive on its vast energy reserves, and without the burden of Westminster drawing its share, will have much more freedom to spend it wisely. This is a huge risk on the part of Scotland, if the gas prices fall (or worse, they have seriously over-estimated the size of the reserves) they have very little to fall back on, and an independent economy could leave them struggling.
Meanwhile those No sayers down in London are also trying to use emotional rhetoric – a Yes vote will mean the loss of many symbols held dear including the sterling. Again there is no clear debate on the impact on England of retaining the pound without the union and seems mainly fuelled by certain English antagonism towards Independence – with the attitude of a jilted lover, if you leave you take nothing.
Our economy as with many countries always gets a boost when the Government spends money, and this week, a massive investment in our armed forces was announced by the Prime Minister David Cameron
All economies of the world are dictated by how the government re invests our tax money, and as with the US announcing massive infrastructure plans after the financial crisis in 2007, an investment in the UK armed forces, is just the same and can give the economy a boost, if the money is spent correctly.
We see a Billion Pounds coming into our economy which may seem like a lot, but compared to the 700 billion dollars spent by the United States last year on Defence, it is just a small drop in the ocean for technology based home land security.
Let’s hope it is all spent in the UK
Well more money into the UK from China in 18 months, than in the past 30 years. China invested over 8 Billion pounds in 2012-13, and this week after a meeting with David Carmeron, The Chinese premier Mr Li, along with a very large business delegation, are likely to invest another 18 billion pounds in the UK, within energy and finance.
Visa changes and a visit with the Queen at windsor castle probably helped ..alot
UK Business is Global