The World Economy is Recovering, But Some Countries More Slowly than Others?

INTRODUCTION
As The global economy pulls out Of
Recession, some Countries Are recovering
Faster Than Others
After the recent downturn, the world economy has turned a corner, and growth has resumed. But although a global expansion has followed the most widespread recession in history, the speed of the recovery has differed dramatically among countries and regions.

DISCUSSION
· In Japan, North America, and Northern Europe, this has been a half-speed recovery, with growth but slow
progress in returning to normal. Although the recent earthquake, tsunami, and nuclear accidents in Japan are a
major tragedy for those involved, the impact on the Japanese economy is likely to be modest and the impact on
world economies slight. However, the events still add risk to the world economy, in particular in Japan.
· By contrast, in mainland Asia, growth barely slowed during the recession, and the economies are returning to
normal quickly.
· In the commodity-producing countries of Latin America, Africa, and the Middle East, firm prices kept the
recession milder and shorter than in the developed world. However, those high commodity prices are contributing
to the slower growth in the developed world .Although both monetary and fiscal policies supported the economic turnaround, panic in financial markets was the
real problem that created it.
North America's Recovery Has Been Slow
The U.S. economy is improving slowly. The sharp drop in the unemployment rate in November and December
(down 0.8 percentage points to 9.0%) is in part an artifact of the unemployment benefit program. However, it also
stems from stronger household survey employment gains that have been characteristic of recent recoveries, and it
probably reflects the increased use of contract labor. Harsh winter weather will take some growth out of the
economy in the first quarter, as the weaker-than-expected January retail sales demonstrate. However, the economy
overall has accelerated in recent months, and we expect GDP growth of 3.1% this year
Europe's Debt Crisis Has Slowed Growth:
The debt crisis in the European periphery has slowed Europe's recovery. Although the financial problems began in the U.S., the crisis revealed severe problems in many European countries. The European Union and European .Central Bank have been slow to respond to the crisis, in part because of national political issues and a lack of precedents. The longer-term issues of relative competitiveness remain a challenge; inflation in many of the Southern European nations has run well ahead of that of Germany and France, making their exports uncompetitive within Europe.
The crisis seems to be calming down, though the fixes are not yet completed.
Growth In Japan Will Likely Be Sluggish:
The Japanese economy had the deepest downturn of any of the developed countries but then recovered more
quickly, in part because of a surge in exports to China. However, bad weather and slowing domestic demand
brought real GDP down in the fourth quarter. We expect the economy to recover in the spring despite the country's
recent catastrophes
Oil Dominates The Economies Of The Middle East And North Africa
Strong oil prices are providing strong support for the Arab countries, but the political turmoil adds sharply to risks.
Even the countries without oil of their own tend to depend on the demand from the neighboring oil producers. The
poorer countries are seeing the most political turmoil, in part because of the squeeze on consumers of higher energy
and food prices. This region has the highest risk and thus poses the biggest threat to the world economy

• conclusion: above we have discussed that how and why world is recovering but slower than other in europe debt crisis, longer-term issues of relative competitiveness remain a challenge and north america's recovery has been slowly increasing. investments should be made wisely so as to develop the world economy fastly and positively.