What evidence does the data provide of the countries experiencing the economic downturn in recent years? On the basis of the data collected, what similarities and differences are there in the performance of the economies? Describe the general relationship you observe between GDP growth, inflation and unemployment rates.
The Assignment on The Global Economy helps us to understand the economics of the global society. In the recent years, the global financial crisis occurred. The effect of the global financial crisis started in the year of 2008 and the global economy took almost around 3 years to recover from it. If we try to look for the evidence in the above presented data, it is clearly visible in case of United States. The United States was worst affected in the global financial crisis. As we can see the real GDP growth line goes into negative zone during the year 2008 and 2009. The inflation line also goes into the negative zone during that period, while the unemployment was at its peak. The indicators for Australia also suggest that the period of the global economy goes down turn during the year 2009 to 2011. The real GDP growth rate line has come down, inflation also decreased and unemployment increased during this period. In case of India, the data shows a different trend. It seems that India was not affected during the global financial crisis. The figures for real GDP, inflation and unemployment were not affected during the period of global financial crisis. The only exception in this case is the real GDP growth rate for the year of 2008. It may be because India recovered faster from the global financial crisis, so the inflation rate and rate of unemployment was not affected at all.