Economics
Truly a Global Economy
Even twenty-five years ago, the world economy was driven by the United States. Over the course of the last century, America became the engine driving world commerce. For investors and entrepreneurs, an awareness and knowledge of the U.S. market was an absolute must if you aspired to develop a portfolio with upward mobility. Fifty years ago, something manufactured in Japan was synonymous with cheap or substandard merchandise. Today, that is far from the truth. Today, we truly live in a global economy where developments on the other side of the world can have major ramifications in our own backyard.
Recently, we have all been monitoring the stock market with anxious eyes. The impact a relatively small country like Greece has had on the U.S. stock market has been enormous. As a matter of fact, Greece has had an impact far greater than this small country should be able to impact finances elsewhere in the world. With the European market trying desperately to bolster the failing Greek economy, markets in the U.S. have exhibited a volatility unknown just a few short years ago.
Spain’s economy is showing increasingly alarming symptoms of following in the footsteps of the Greek financial woes. Adversely affected by their trading partners, both France and Portugal also are suffering from “ European Union” woes due to their common economic distress.
While China has in recent years had the fastest growing economy in the world, even their unprecedented growth has been stymied in recent months. China’s biggest critics complain because their government does not allow their currency to float free-market like most of the world’s major players. In China, the government has established parameters that force their currency to vary only between these narrow confines determined by the Chinese government.
Brazil has been a shining star financially in recent years. Bucking the trend of economic downturns, Brazil has strengthened their currency dramatically. Mostly this is as a result of Brazil’s energy independence. Ethanol has been a boone to Brazil’s varied economy and the country is enjoying one of the most positive trends in economic growth.
This overview simply pinpoints the true nature of today’s economy. We are all intertwined into one strand of financial health. Today- we must be a student of a truly Global Economy.
Sudan Economic Development
The Country of Sudan is a developing economy that currently relies heavily on oil production, high oil prices, and foreign direct investment. The countries supplying most of the economic assistance over the years has been the United States, the Netherlands, Kuwait, Saudi Arabia, Italy, and Germany. There is also a few other OPEC countries that have supplied considerable economic assistance as well. Sudan also relies on the World Bank for loans on various development projects that the country undertakes.
Sudan registered a little over 10% GDP growth in 2006 and 2007. That definitely shows that their economy is on an upswing. Most of that growth is fueled by higher oil production and prices. Agriculture also plays a big role in Sudan’s economy by making up 1/3 of Gross Domestic Product. Even more significant is that agriculture employs over 80% of the overall Sudanese work force. The biggest growth sector in the years to come may be in mining. Sudan is reportedly sitting on large mineral deposits, but there has not been enough exploration to give a true gauge on what is actually there.I do have to say that this is an economy that everyone should watch. They have these untapped resources and an oil industry that is fairly strong.