Thursday, 21 April 2011

Businesses are performing little better in this year

Recession created troubles for business houses. Now situation is little better. Companies are showing good results. Apple’s profit rises up to 95% in first quarter of this year. This show consumer confidence. Although nokia ‘s profit decreases 1% but it was above expectation. Net profit of American giant General Electric rose more than 79% in first quarter of this year than first quarter of previous years . In previous year , recession hit most businesses. Now effect of recession is decreasing and companies are performing better.

Saturday, 16 April 2011

Inflation is a big challenge for central banks

Inflation is a major concern today. World economy is suffering from high rate of inflation. Main cause of inflation is rising crude oil prices and financial packages given by governments to help economy in recession time. Interest rates are at very low rage. In US inflation rate increased from 2.2 to 2.7 in March. In China inflation is reached very high above 5% in March. Chinese consumers are suffering from high housing and food prices . Chinese central bank is trying to keep liquidity in control. Inflation is already record high in England.
Economists believe that crude oil may remain above $100 or go up.
Gold and silver are at record high. Currencies are showing weakness. So in future controlling inflation is a big challenge for central banks.
Increasing interest rates may hit economic growth. Crude oil prices are out of control. It is a big challenge.

Monday, 4 April 2011

Employment rate is not improving in Spain , Oil prices making problems

According to Spanish Labor department , unemployed numbers touched 4.7 million this month. Conditions are not similar in America or other countries as other economies are showing recovery . Big portion of Spanish labor is unemployed. About 20% of population is unemployed. Rate is one of highest in the century. Spain has socialist government and socialist polices are also responsible for delay in recovery. In other major European countries unemployment rate is falling. One reason of slow recovery is Spanish construction boom which is ended. In past economy depended highly on construction sector. This sector takes more time to improve than other consumption sector. Oil is reaching new highly of 2years. It reached above $108 and it may slow or stop economic recovery. Conditions in Libya made situations worst.

Friday, 1 April 2011

Unemployment rate decreases in US, Europe & debate of nuclear energy in Germany

After Feb, US employment rate increased again in March. European economy is also showing recovery singals. US unemployment rate fell to 8.8 from 8.9. Europe also registered increase in employment. This employment will create demand in economy which is key to growth. But there are fears of increasing inflation. Oil & commodity prices can increase inflation rate. Inflation may hurt this employment growth. Outlook of economy is good. There is a debate about nuclear energy in Germany. A local German govt. order a company to suspend energy production in a nuclear plant for some month. Germany already have much energy consumption. Such activities would damage economic growth as Germany does not have enough energy resources.We hope nuclear energy would not be discouraged in Germany as it is not good for economic growth