Vol 2, No 2 (2018)

The Dimensions of Global Meltdown - The Impact and Incidence

Authors: Dr. K. Bhanu Prakash, Mr. P. Siva Reddy

Abstract: As headwinds from the Global Financial Crisis (2008-09), followed by the European Sovereign Debt Crisis (2010-12) and the Global Commodity Price Realignments (2014–16) subside, the Cyclical Upswings in Global Output have grown by 3.7 percent in 2017 which is half per cent higher than in 2016. (IMF, Jan, 2018).The Global Economies experienced 3.0 per cent Economic Growth in 2017, a significant acceleration compared to growth of just 2.4 per cent in 2016, and the highest rateof global growth recorded since 2011. Labour market indicators continue to improve in twothirds of countries worldwide in 2017 and remain steady at 3.0 per cent in 2018 and 2019. Yet, Weak growth in Per Capita Income poses setbacks to sustainable development targets across countries and regions. The Investment Rebound is amid of low Financial Volatility and Financing Costs, reduced fragilities in Banking Sector, rising levels of NPAs.(UN World Economic Situation Report, 2018). Indian Economy is also on the path of Economic Prosperity and GDP Growth is picking up and expected to grow at 7 percent, its fastest pace in the Oct-Dec Quarter after disruptions from a shock ban on high-value currency notes in Nov, 2016 and the chaotic launch of a GST in July are fading (The Hindu, 27th Feb, 2018).The revival for survival from recession is termed as ‘Economic Prosperity’ and the creeping of Economic Depression around the Global Economies is termed as ‘Global Meltdown’ (IMF). The crash of Stock, FX ,CX and Bond Markets, volatility in Stock Prices and Returns, the rise of Non-Performing Loans of FIs impacts Investment Climate and finally Household Savings and Consumption per se. While acknowledging the persisting cyclical and long-term risks and challenges, the paper addresses dimensions of meltdown and offer suggestions on ‘Economic Prosperity’ and ‘Sustainable Economic Development’ in long-run

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