Economics Article

According to most economists, the world economy is very dependent on American demand. Recently, it has been discovered that the world economy can sustain itself in the event of a recession in the United States economy. The major reason for this new found stability is the emerging markets in Asia, particularly China. Fear that the American economy will fall into recession is driven by two major factors: a slumping housing market and a declining dollar. Over the past several years, emerging economies in Asia have been responsible for a greater share of the global gross domestic product growth than the United States. This year, China alone will be responsible for more GDP growth than the United States. Although this great news for the global economy, a sharp slowdown in the Chinese economy will have a more devastating effect than in the past because more of the world is dependent upon Chinese exports.

In my personal opinion, I truly believe that this news is great for the rest of the world. The world economy should not be so heavily dependent on the economy of one nation or country. The United States economy is in danger of slipping into a recession. The fact that China's economy has been so successful over the last few years is no surprise to me considering every product you purchase nowadays is either made or assembled in China. With the world becoming more and more dependent on Chinese exports, it was only a matter of time before China's contribution to the global GDP increased.