Economics Assignment: Growth and Development of World Economy

This economics assignment discusses the growth and development of the world economy, focusing on factors such as poor trade policy, low consumer confidence, and the impact of Brexit. It also explores the potential for economic growth in developing countries and the importance of government policies in resource utilization and investment. The assignment concludes with the significance of government policies in promoting technological advancements and resource utilization.

Running head: Economics assignment
Economics assignment
Name of the student
Student ID
Course ID
Name of the course

1
Economics assignment
Table of Contents
Introduction......................................................................................................................................2
Analysis...........................................................................................................................................2
Conclusion.......................................................................................................................................4
Reference list...................................................................................................................................5

2
Economics assignment
Introduction
The agenda of this study is to identify and explain the growth and development of world
economy and process that the world economy is using the factors of the global economy and is
mainly willing to take into consideration policies that are being taken by government in
increasing the growth of the economy.
Analysis
From various economic significance of the world economy, the OECD or Organization
for Economic Co-Operation & Development has forecasted that world economy will achieve
growth of 3.3% in 2019 and 3.4% in 2020. OECD has found many reasons in the form of poor
trade policy, low rate of confidence for the consumers and poor performance of business units
are actually hindering the growth of world economy. After the incident of Brexit, sustainability
in most of the European economies is under question. Moreover, the US-China spat, recessions
in Italy is making the situation worse. On the other hand, Germany is one of the largest
economies among the OECD, and it has been predicted that the growth rate in Germany will be
around 0.7% from the current growth of 1.6%. I have understood that after the incident of Brexit,
the development of world economy has become stagnant in nature (World Economic Forum,
2019). I have seen that in the US economy, both the customer income and the consumer
spending have fallen by more than three times. Even the developed economy like China has
faced stiffness in their economic growth. The OECD has predicted that the world economic
growth is going to be reduced at around 3.5% (Aljazeera.com, 2018). From the perspective of
this international growth, I have seen that the prolonged impact of the Brexit and incidence of
inflation rate within the developed nations are not helping in development of the economy.

3
Economics assignment
From the study of OECD, I have came to know that developing countries like Brazil,
Russia, Turkey these countries are mostly in danger as the potentiality within these countries to
mitigate the gaps is missing. However, from the study I have understood the fact that global
economic growth is falling and will continue to fall even in the end. I have seen that global
domestic product is going to decrease by 0.8% by 2021 and as per my view, it is important to
indulge the development of economic growth through incorporating better resources. I believe
that any economy should identify their resources and after the Brexit took place, most of the
countries are facing stagnant in their economic growth. I believe that economy like China is
mainly looking to increase the return on the capital by spending the money on infrastructures and
many other aspects. The policy of increasing the tax cut is going to increase the investment. I
believe that cutting the tax to increase the investment is going to increase the potentiality of the
unused resources that are present within the economy. I have seen that Chinese economy is going
to increase their gaps by indulging heavy investment within the economy that will allow the
revenue generation within the economy (U.S, 2019). I believe that investment is important for
most of developing nations, as they bring foreign direct investments. From the study, I have
learned that developing nations in the first phases of development, the improvement in the skills
and potentiality through increasing the knowledge of the employees are going to help in the
long-run.
After studying the papers published by OECD, I have came to know that in order to grow
upgrading the skills and potentiality of the employees and bringing in better level of investments
within the economy will help these countries in improving the resources (Oecd.org, 2019).
Through the study, I have seen that development of economy is closely related with innovations
in investment and that will increase the channelization in the resources. Most of the companies

4
Economics assignment
will try to hire talented employees in order to highlight the resource canalisations. I believe that
in order to increase the income of the economy, it is important to indulge strong policies from
government so that economies can control the inflation variable and will be able to identify the
gaps in the resource distribution. From the study, I have understood the indulgence of better
improvement in the foreign trade policy will automatically allow fewer developing countries to
communicate with the developed nations and through the trade the exchange of quantity and
quantity will be possible to achieve.
Conclusion
From the whole study, I have seen that in order to increase the resource utilization,
government policy is extremely important. This is significant because of the fact that through the
development of resources most of the economy will be aiming to increase the investment rate
that will automatically induce the growth of advanced level of technology within the economy.

5
Economics assignment
Reference list
Aljazeera.com. (2018). World economy to slow down in 2019 due to trade wars: OECD. [online]
Available at: https://www.aljazeera.com/news/2018/11/world-economy-slow-2019-due-trade-
wars-oecd-181121110001129.html [Accessed 20 Apr. 2019].
Oecd.org. (2019). Economic outlook, analysis and forecasts - OECD. [online] Available at:
https://www.oecd.org/eco/outlook/ [Accessed 20 Apr. 2019].
Oecd.org. (2019). OECD Going Digital Summit - Organisation for Economic Co-operation and
Development. [online] Available at: http://www.oecd.org/going-digital/summit/ [Accessed 20
Apr. 2019].
The Forum Network, h. (2019). The Forum Network, hosted by the OECD: Shape ideas. Shape
policy. Shape the Future.. [online] The Forum Network, hosted by the OECD: Shape ideas.
Shape policy. Shape the Future. Available at: https://www.oecd-forum.org/ [Accessed 20 Apr.
2019].
U.S. (2019). Global economic growth forecasts cut again by OECD. [online] Available at:
https://www.reuters.com/article/us-oecd-economy/global-economic-growth-forecasts-cut-again-
by-oecd-idUSKCN1QN13N [Accessed 20 Apr. 2019].
World Economic Forum. (2019). Global economic growth forecasts cut again by OECD.
[online] Available at: https://www.weforum.org/agenda/2019/03/global-economic-growth-
forecasts-cut-again-by-oecd/ [Accessed 20 Apr. 2019].