The Current State of the Post-Recession Global Economy Research Paper

The Current State of the Post-Recession Global Economy - Research Paper Example Additionally, there is always a shift in supply and demand. The needs of nations and individual differ making it complex to preserve the steadiness of the economy. An ideal situation can never exist in the world economy making recession inevitable. Consequently, the recession that took place in 2008 was expected. Recession has significantly influenced the global economy as apparent in trade, unemployment and relationship amid countries. The current state of the global economy after recession According to Foroohar & Schneiderman (2010), recession refers to a situation when the economy has experienced inflation for quite a long period. Recession affected most nations in the Western hemisphere in 2008. Before the recession began, Japan and the US were controlling most part of the global economy. Consequently, countries in the West were experiencing a boom in the property market. The rates of unemployment were at the lowest level for a long period, and banks were charging lower interest rates for loans. The decrease in lending rates contributed to the increase in investments. However, the gains came to a halt after the recession in 2009. Presently, the United States and Japan have limited control on the activities taking place in the global market. The two countries no longer influence trade directly because they are facing competition from China. The influence they had has shifted to countries like China, Brazil and South Korea. However, the US is still the global economic powerhouse. According to Avantika (2011), countries like India and Brazil are beginning to exert their influence on trade globally. As a result, growth is on the decline in Japan and America. This is making investors shift their plans by investing in developing economies. It is clear that Malaysia and Singapore are formulating innovations to counter the dynamics of trade. Concurrently, the US in coming up with policies to correct the decline of their economies. Consequently, the recent president ial debate in America focused on measures for reviving the global economy. According to Avantika (2011), there is stagnation in the growth of the economy of China at 7 per cent. This is a decline from the double-digit growth realized in the same time last year. This is an indication that the global economy is unpredictable. Schaeffer (2009) adds that uncertainties in the global economy have made nations readjust their plans. For instance, South Korea is deploying their resources towards energy production to avert the energy crisis. This is because most of the economic activities in the global economy are dependent on fossil fuels. Developing economies in Asia are opting to trade with African countries. This is affects global trade by reducing the demand of commodities from developed economies. Indeed, African nations have increased their demand for products from the markets in Asia. Besides, China is encouraging domestic consumption to reduce their dependency on exports. Moreover, C hina has reformed their pension scheme to cater for the needs of the middle-class citizen who constitute the majority in the populace. According to Neumark & Troske (2012), it is necessary to review trade policies for economies of Asian countries. New policies will bring changes in the healthcare and the education sector in developing eco