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Sky
March4, 2010
Business Economics

Reference:
Goldman, David. (Feb 24th, 2010) “G-20 summit: 6 countries in recovery: United States: Painful rebound, Japan: Cautious improvement and China: Massive stimulus”. CNNMoney.com. http://money.cnn.com/galleries/2009/news/0909/gallery.g_20_summit/index.html

Summary:
On February 24th, the G20 summit that there are six countries which are United States, Japan, China, Germany, France, and United Kingdom recover gradually from the recession. United States economy had been through four quarters of decline, and just starts to climb up. The financial market and interbank lending have shown signs of improvement. Although the consumer spending is still in a low point and business have kept cutting back on spending, many economics even the Federal Reserve Chairman Ben Bernanke believe that the economy conditions on the path of recovery. Japan’s economics recovers greatly from the lowest point of GDP during the second quarter of 2009. The recovery was mainly influenced by the $275 billion stimulus package. It is still hard to say that Japan’s economy is in a truly recovery as the business spending on inventories was cut so low in prior quarter, and the economists are still concern about the growing deflation rate, unemployment rate and the 2times larger debt than GDP. China’s GDP almost climb upon the point used to be before the recession from the lowest point ever of the first quarter of 2009. The attempts of China’s state-controlled banking system and government make a big difference on the economy. The government of china report that china would “remain the world’s fastest-growing economy”.

Reaction:
According to the report from G-20, “challenges remain but most appear on the path to recovery.” It is a good sign showing the economies of G-20 are under better conditions than they used were. The world’s economy would follow the trends to climb up. People would be inspired by this news to have faith on the economy in the future. The faith would leads the spending of individuals or firms increase and then stimulus the economy rebound faster and better. During the recession, people cut spending a lot, and I think it is one of the reasons why the world’s economy gets worse and worse. There are problems such as high unemployment ongoing, so people may not sharply increase the spending. But as the economic conditions in getting better, the unemployment rate should decrease soon in the future.

Vocabulary:
Rebound: to spring back on or as if on collision or impact with another body
Inflation: a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.
Stabilizing: to make stable, steadfast, or firm
Shrink: to lessen in value
Construction: to make or form by combining or arranging parts or elements
Inventory: an itemized list of current assets: as (1): a catalog of the property of an individual or estate (2): a list of goods on hand.
Boost: increase, rise.
Recession: a period of reduced economic activity.
Bare bones: the barest essentials, facts, or elements
Cautious: watchful and discreet in the face of danger or risk.
Deflation: a contraction in the volume of available money or credit that results in a general decline in prices.
Fiscal: of or relating to taxation, public revenues, or public debts.