News 2 Use: The U.S. economy may already be in recession; other countries might not be far behind.

HBJ Capital Reports: It seems talk of recession is floating around in US/UK/China/Japan….what about India…

“NO, NOBODY IS TALKING ABOUT RECESSION IN INDIA”. Does it means we are safe while world is going under crisis, no we are not!!!

We are not de-coupled from developed countries……India contributes just 13-15% for exports but after all most of the funds are flowing in India from across the globe only, any downward trend in the fund flow will hit our growth plan and we will also sink along with other countries.

News Reports:-

  • Japan, Britain, Spain and Singapore, which together represent about 12 percent of the world economy, are vulnerable as fallout from the U.S. worsens their economic weakness.
  • Even emerging markets, including China, are likely to suffer as exports to the U.S. wane. China’s growth slowed to a year-over-year pace of 11.2 percent in the fourth quarter, from 11.5 percent and 11.9 percent in the third and second quarters, respectively.

  • Jim O’Neill, chief economist at Goldman Sachs Group in London, says growth in the first half of 2008 may be the “weakest since 2002 and maybe even 2001,” during the last global downturn. “The economy is slowing everywhere,” he says.

  • Global growth may decelerate close to the 3 percent pace economists deem a worldwide recession, from a 4.7 percent rate in 2007. By that measure, three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002.

  • “Japan is on the brink of a recession,” says Hiroshi Shiraishi, an economist at Lehman Brothers Japan Ltd. in Tokyo. “Exports are supporting the economy, but with the U.S. slowdown they’re likely to lose momentum.” “The BOJ should cut rates back to zero immediately.”

-HBJ Capital Team.

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