How has the global economic environment changed in the last year?

Following two years of weak and uneven recovery from the global financial crisis, the world economy is teetering on the brink of another major downturn. Output growth has already slowed considerably during 2011, especially in the developed countries. The baseline forecast foresees continued a pale growth during 2012 and 2013. Such growth is far from sufficient to deal with the continued jobs crises in most developed economies and will drag down income growth in developing countries.

In this paper I will be speaking about the global economy, but first, I will elaborate and concentrate on the strongest economy in the world, the US. In the past year, the most important issue in the United States was employment. All of this year we have seen the employment rate change from 8.1% 8.3% which is a very narrow range, but still means that 12.8 million people are out of jobs, which is extremely bad, but on the other hand, if you wanted to compare it to the rate in 2008, where the economy was falling apart, things seem optimistic. It’s not the government isn’t creating jobs, because it is. The problem is that it’s not creating enough jobs to soak up all the people who were laid off. On average, the country has been adding 150,000 each month, which is good, but not fast enough for people who have been laid of for a while to return to the job market.

Another problem is the housing market. In comparison to 2007, home pricing are down by almost a 1/3 of the price, which means that a lot of people are going through short sales and foreclosures. Homeowners are frightened due to the fact that they are losing money. On the bright side, economics believe that the housing market has hit rock bottom, meaning that the only place to go is up from now on. There are places, like Washington DC, Seattle