Review of 2007 Highlights – India and the Global world economy, stocks..
India & World Economy
India economy is growing strong with GDP at about 8 %, inflation about 4.5% and has seen significant foreign investment. China, Europe, Dubai and Latin America & Canada have seen improved economy during 2007. China growth rate at over 14% continues to be increasing at an alarmingly high rate.. India exports performed strongly and rose by 20% to US$123.2 Billion and imports increased by close to 25% to US$184 Billion.
GDP (Based on Purchase price parity)
America's $12.4 trillion
China - $8.9 trillion
Japan - $4.0 trillion
India – About $2.9 trillion (Down from forecasted 4.0 Trillion)
Stocks Markets
India stock market index (BES-Sensex) has seen phenomenal growth this year with the index starting the year at around 12,000 and touching 20,000 mark for the first time ever, recording a growth of over 65 %
- China’s Shangai composite Index gew by about 200 % with the index at about 6000
- US stocks – Dow jones recorded about 17 % growth with the index at about 13500
- UK stocks – FTSE 100 rose by about 16% at 6450
Foreign direct investment (FDI)
USA, UK, China are the top 3 countries this year for the FDI.
Major World Currencies
US Dollar lost against major currencies this year as follows (As of Dec 20th 2007)
1 USD = 0.6964 Euro
1 USD = 1.0014 Canadian Dollar
1 USD = 7.3783 Chinese yuan
1 USD = 39.575 India Rupess
Impact of sliding dollar on US and World Economy : In view of the fact that global prices and trends are measured in USD and considering the fact that dollar has been sliding – The Forbes riches 100 list has a number of individuals from India, South America etc.. India exports are now cheaper and the outsourcing business are seeing the impact with less margins compared to couple of years..
US Market has been shaken by the sub-prime issue and many US financial institutions have been significantly affected in the 3 qtr this year and along with the Housing bust is having a negative impact on the US economy..
That is it for 2007. Have a safe and Happy Holidays, Season's greetings and Happy New Year !
Note: The facts and stats are from the study and analysis done and published by reliable sources such as Business Week and Economist etc..
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