Overview of trade and production developments in 2008
Economic Growth
World economic growth-measured by total production or gross
domestic product (GDP)-slowed abruptly in 2008 against the backdrop of the
worst financial crisis since the 1930s. Weaker demand in developed economies
brought about by falling asset prices and increased economic uncertainty helped
pull world output growth down to 1.7%, from 3.5% a year earlier. Growth in 2008
was the slowest since 2001 and well below the 10 year average rate of 2.9%.
Developed economies only managed a meager 0.8% growth during
last year, compared to 2.5% in 2007, and an average rate of 2.2% between 2000
and 2008. Developing economies, on the other hand, expanded their output in
2008 by 5.6%, down from 7.5% in 2007, but still equal to their average rate for
the 2000-08 period.
Oil exporting countries experienced rapid growth of 5.5% on
average in 2008, with exports from the Middle East growing at an even faster
rate of 6.3%.
Least-developed countries (LDCs) grew faster than any other
group of countries, at 6.6%, and above their 2000-08 average rate of 6.3%.
Europe and North America each grew only about 1% in 2008,
while the oil exporting regions of South and Central America, the Commonwealth
of Independent States, Africa and the Middle East all experienced GDP growth in
excess of 5%.
Asia's economic growth (GDP) in 2008 was only 2%, owing in
large measure to the negative growth (-0.7%) recorded by Japan. By contrast, developing Asia (excluding Japan, Australia and New Zealand) grew 5.7%, led by China, which registered the fastest growth of any major economy, at
9.0%.
The overall picture was one of continuing growth in the
first half of the year, with oil exporting countries in particular benefiting
from record high commodity prices. This was followed by faltering growth and
the beginnings of a severe downturn in the second half, starting in the United States and other developed countries, and then spreading to developing countries.
Source:
AEPC
Weekly
