ASIAN ECONOMY RECOVERING

According to the Asian Development Bank (ADB) Asia's developing economies are expected to grow by just under 8% in 2011.It has been predicted by the experts that the economy of the region would expand solidly over the next two years but at the same time there is a chance that the growth rate would be slower than in 2010.

Analysts are also expecting that inflation would impose a challenge for many Asian countries and which will lead them to social tensions.As the economy of China and India has groomed well enough in few years which would be able to continue the drive to the global and regional economic recovery. But a report has been given in which there is a great chance that the Inflation rate of almost 45 Asian economies may rise to 5.3% in year 2011 which was 4.4% in 2010 this is really something very serious.

But still the economic conditions getting better and better .

MIDDLE EAST SITUATION IS EFFECTING ASIAN STOCK

The Middle East is a very important region in the world and the crises in the region not only severely effects the stock market as well as the economic situation of the region but also the Asian markets as well. In Asia the oil prices constantly rising and the bloody conflicts in Libya has badly effected the Asian market and recent situation has also created a fear about the oil supply to Europe but as on the other hand Saudi Arabia has made assurance that it would increase its oil output if any problem occur in the oil supply from Libya but it is going to be disastrous for the European countries if any excuse made by Saudi an Government.

Chinese inflation rate hit 4.9 % in February, which was not expected so as a result on Tuesday most of the Asian stock fell as Tokyo’s Nikkie was down 1.09 % and the Sydney, Hong Kong  and Shanghai fell 1.09 %, 0.33 % and 0.93 % respectively. On the other hand,New York’s light sweet crude increased 44 cents and sold to $104.82 per barrel on the other hand Brent North Sea crude rose 56 cents and sold to $116.50. Now a days clashes between the Libya forces and the revolutionist has increased severely which really effect the oil pipelines.

There is a prediction given by the analysts that Chinese inflation data will be out in few days which is one of the biggest reason for market nervousness. US stocks market is also in great trouble due to turmoil in Libya as a result the Nasdaq dropped 0.51% and the Dow Jones and SP 500 index decreased by 0.01 %, 0.14% respectively. This is not a good sign for the Asian Market which was struggling after the earthquake of Japan but the recent figures fell it into great trouble.

WARNING BY WORLD BANK AFTER HIGH FOOD PRICES

World Bank give a warning and says that prices of the important products like food and fuel are at unreachable level after which almost 44 million more people have been moved to the level of below poverty after June 2010 and it has also written in the report that the world economy could return to the darkness of the crisis of year 2008 if all this happenings. After the recession which hit the world in year 2009/10 , the food analysts are continuously saying that we have no doubt in calling the year 2011 to be a year of retardation.  

From last four months it is shameful to tell that the prices of food rose by 15% and never went good for those poor people who used to spend more than half of their income on food and caused a lot of deaths due to hunger as wheat's value get doubled in a time between June and January 2011 also maize prices were rose by 73%. The main factor of this rise in the food prices is the situation of Middle East which through its bad light on the whole world and also the bad business condition put the fuel on this fire during the bad time of Egypt which effect the common people.

The main question arises in the mind of every person that how this effect the world? and a simple answer to this question is that economists are saying that emerging countries will be able to expand only 6.0% this year and was 7.0% in 2010. There might be a chance as many people are saying that food prices in most developing countries have not increased as much but it is a fact and nobody can hide this that in poor countries it rose a lot. The second thing is that the growth of world economy is expected to rise by 3.6% rate for 2012, but now it seems to be very difficult to achieve that figure after this huge crisis.

Energy Resources Finished

The rule of this universe that everyone wants more than that he had, same is the case of energy resources. World deals with the oil fields since last 5 or 6 reflects the same type of behavior as the use of it is  increasing day by day. A report by International Energy Agency (IEA) which is the Representative of  the industrial countries and OPEC, in which there is an idea that few years before , in 2008 and 2009 the thirst of oil was not as big as in 2010 and the sale of the oil in 2008 and 2009 was about 87.7 million barrels per day which is much less than the figure of 2010. In 2010 the sale of oil rises as the economic rise came in the underdeveloped countries , in 2010 the consumption of oil was 89 million barrels.