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JA among 10 worst economically hit countries - Forbes
Thursday, 09 July 2009
Jamaica has been named among the top 10 countries in the world hardest hit by the global recession.
The online version of financial magazine 'Forbes', says most of the world is enjoying low inflation, with high unemployment keeping wage and price growth in check.
<span style="font-weight: bold">However, it names Jamaica among the nations that are drowning financially because of huge government debt burdens</span>.
On Thursday, <span style="font-style: italic">the International Monetary Fund (IMF) said </span>many economies are beginning to pull out of the recession.
Jamaica, however, is on the list of the 10 countries that probably will not be doing that anytime soon.
The webzine said the economies of Seychelles, Iceland, Venezuela, Ukraine, Latvia, Estonia, Ireland and Lithuania are among those other countries, unlikely to be taking the recovery trip now.
Their gross domestic product is shown to have falled by more than 10% the standard yardstick for a depression.
Gross Domestic Product (GDP) is the most straightforward measure of a country's overall economic performance and declining GDP predicts rising unemployment.
<span style="font-weight: bold">Forbes said it used data from the IMF to find the 10 countries hardest hit by the financial downturn.</span>
It created a 'Misery Index', highlighting gross domestic product, inflation rate and purchasing power parity.
All listed countries including Jamaica have weak GDP, creating the phenomenon known as "stagflation."
The Forbes article notes that inflation in a country that is still growing is not nearly as bad as inflation in a country with slow growth, as is the case in Jamaica.
To distinguish between inflation that is running away from wages, Forbes also weighted the per-capita purchasing power parity, which measures how much more or less a person can actually afford to buy in the changing economy.
The worst recession-hit countries depend heavily on trade and international banking in their economies, and many have unsustainable debts.
<span style="font-weight: bold">It used Jamaica as an example, with its net-government deficit around 113% the size of its entire economy.</span>
The US deficit is predicted to reach around 65% of the economy at the end of 2010, somewhat more manageable than Jamaica's.
Forbes states that the US economy has slowed only 3.2% from its peak while Jamaica's is off by 4%.
Thursday, 09 July 2009
Jamaica has been named among the top 10 countries in the world hardest hit by the global recession.
The online version of financial magazine 'Forbes', says most of the world is enjoying low inflation, with high unemployment keeping wage and price growth in check.
<span style="font-weight: bold">However, it names Jamaica among the nations that are drowning financially because of huge government debt burdens</span>.
On Thursday, <span style="font-style: italic">the International Monetary Fund (IMF) said </span>many economies are beginning to pull out of the recession.
Jamaica, however, is on the list of the 10 countries that probably will not be doing that anytime soon.
The webzine said the economies of Seychelles, Iceland, Venezuela, Ukraine, Latvia, Estonia, Ireland and Lithuania are among those other countries, unlikely to be taking the recovery trip now.
Their gross domestic product is shown to have falled by more than 10% the standard yardstick for a depression.
Gross Domestic Product (GDP) is the most straightforward measure of a country's overall economic performance and declining GDP predicts rising unemployment.
<span style="font-weight: bold">Forbes said it used data from the IMF to find the 10 countries hardest hit by the financial downturn.</span>
It created a 'Misery Index', highlighting gross domestic product, inflation rate and purchasing power parity.
All listed countries including Jamaica have weak GDP, creating the phenomenon known as "stagflation."
The Forbes article notes that inflation in a country that is still growing is not nearly as bad as inflation in a country with slow growth, as is the case in Jamaica.
To distinguish between inflation that is running away from wages, Forbes also weighted the per-capita purchasing power parity, which measures how much more or less a person can actually afford to buy in the changing economy.
The worst recession-hit countries depend heavily on trade and international banking in their economies, and many have unsustainable debts.
<span style="font-weight: bold">It used Jamaica as an example, with its net-government deficit around 113% the size of its entire economy.</span>
The US deficit is predicted to reach around 65% of the economy at the end of 2010, somewhat more manageable than Jamaica's.
Forbes states that the US economy has slowed only 3.2% from its peak while Jamaica's is off by 4%.
wonda at the timing of the rating wid our overtures to di IMF....
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