Economics Assignment: Growth and Development of World Economy

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.