Contraction in the whole world economy

As you guys can in the above graph, almost whole world is on verge of recessionary period which may lead to another GREAT DEPRESSION.

China is the only exception in that list which is showing 8.2% growth on YoY. Where as rest of the world are showing -ve growth in the Industrial Production in the October month. Just check in the contraction level in the developed countries like US, UK & Japan, they are showing the figures -4, -5 & -7 respectively. By these figures you can assume the level of intensity with which it affecting the whole world. If this speed continues with the same intensity, I doubt MOTHER OF ALL EXPORTS, CHINA, may also end up in -ve growth rate.

October was the worst month for almost all kinds of market, due to credit crunch & mass layoffs from almost all sectors, which is leading to less spending from the people which is affecting all the sectors of the economy mainly manufacturing sectors. You can see the effect in the below graph.



This is first time in 13 years where in India is facing the -ve IIP(Index of Industrial Production) numbers & overall second time in Indian economic history.

By looking at Bond market & stock market movements, markets are expecting one more round monetary policy support from RBI policies. And lets look forward for 2nd round of economy boosting package from the government which will be announced by next week.

BOTTOM LINE:

Considering the fact of -ve IIP numbers of October, we may get some relief in November IIP numbers, but there will not be substantial changes in the basic economy until unless there is easy flow credit!!!