The world's second largest economy has expanded considerably over the past six weeks following an improving United States' housing market, according to US Federal Reserve survey released on Wednesday. The survey concluded that rising housing market has contributed considerably in uplifting the economic growth of the country, eventually contributing to the US GDP growth.
The World Bank on Monday cut down the economic growth forecast by around 7.2% and it was also noticed that the Asian stocks fell. The main reason behind Asian stocks felling was the European markets which are suffering through stagnant economic conditions. The Bank slashed down GDP growth forecast for the entire East Asia-Pacific region and has estimated about the signs of China as well, being at risk. According to the bank, the economic conditions in China could worsen in coming days, and it would be more than the economists have anticipated.
After experiencing a continuous drop down for 6 consecutive years since 2005, the US housing market has finally acquired pace, with the home prices acquiring extreme heights in last two years. Huge signs of economic recovery are seen with this dynamic rise. Standard & Poor's Case-Shiller Home Price Index, a 20 city composite index, rose by 1.6% from June to July 2012 with 1.2% from July last year. Apart from this growth, the index followed rise in the prior 3 months as well. The prices in the Chicago area which rose by 2.7% in July, better than the 1.6% national gain. Summer was a good real estate selling season in United States' housing market which resulted into such growth.
With the launch of iPhone 5, the long wait and speculations regarding it have finally been rested. Taller, slimmer, lighter, iOS 6 operation system and hordes of other features have made this gizmo been touted by some as the greatest phone in the world. There's no doubt that once the phone arrives in stores on September 21, people will literally pounce on it. The sale of iPhone 5 is supposed to create far greater impacts, than just raking loads of money for Apple. An economist from J P Morgan has asserted that iPhone will boost the sluggish US economy by 0.5% in the coming quarter. This might be the first time in history that a tiny gadget will probably change the economy of a Superpower.
India dropped by three ranks to be placed at 59th position in the Global Competitiveness Index (GCI) 2012-13 survey conducted by World Economic Forum (WEF) on Wednesday. According to the survey of Global Trade Index of 118 economies worldwide, India because of its disappointing performance has slid 10 places since it peaked to 49th position in 2009 and lost three places since last year's survey. The country now stands at the 59th place, lagging behind China by a huge margin of 30.
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