Friday November 19th, a report from the Organization for Economic Cooperation and Development (OCDE) announced that Asian economies will lead the world out of the deepest world’s recession in the last decade. They point out that their growth forecasting has been doubled for 2010. China for instance will have a 10.2% growth in 2010. Even for industrialized economies, growth forecasting for 2010 increased but will be marred by a high unemployment rate and huge government debt.
This news has been reported by several media organizations around the world. Some of them focused on the fact that Asia will lead industrialized economies out of the recession others focused on the problems that Europe and the United States will have to manage: a growing debt and unemployment rate. In addition, some newspapers focused more on the Asian economies performances while others focused more on European and American faster recovery than predicted. In my opinion, both side of the news story are relevant. It depends more on what the author wanted to underline. As you know, this blog attempts to underline the shifting economical and financial power from the West to the East. By implication, from my point of view, the Asian side of the news will be more relevant.
Referring to my experience as blogger, statistics and numbers are difficult to comment. Nevertheless, the meaning of these numbers and the impacts of them could be interesting to analyze. First of all, Asia is taking more and more economical power in the world with growth rate that are twice or three times bigger than European and American growth rates. Moreover, due to Asia, world trade will raise by 6% in 2010. Since September, together we have experience through the news stories this shifting to the East. Secondly, Europe and the United States are slower and will face huge debt and a growing unemployment rate. This means that in a certain way, they will lend money to emerging economies to finance their debt and stimulus employment plans. Consequently, they will be more and more dependent on Asian economies. Several years ago, it was other way around. Finally, the gap between Europe (growth of 0.9% Euro zone) and the United States (growth of 2.5%) is significant. Are European leaders worse? Why can Europe not succeed in a fast-faster- recovery process? One of the possible answer could be the too strong European currency. It should be said that these numbers are predictions. Before doing further analyzes, we should wait until next years to experience what will really happen. Let’s hope that Europe will do better than predicted.
As I wrote, this new story has been reported by several newspapers. Bloomberg and Reuters presented the news in a quiet different way, which is, not usual. Bloomberg wrote “OECD Doubles 2010 Growth Forecast as Global Rebound Accelerates” (Mark Deen & Simon Kennedy, Nov 19th 2009). As the headline suggests, Bloomberg chose to stress the rise of the growth forecasting of Asia, Europe and the United States more than the fact that Asia lead industrialized economies out of the recession. They provided a complete analysis with numbers and percentages. By contrast, Reuters published “Asia helps feeble West in global recovery –OECD” (Nov 19th 2009). The headline speaks by itself. They underlined in their introduction the fact that Asia takes a dominant position. Further down the article, they provided a elaborate description of growth rates for the United States, Euro zone, Japan and China: quote of the article “U.S. growth, measured by gross domestic product, should rise 2.5 percent in 2010 after a contraction of 2.5 percent in 2009, and rise a further 2.8 percent in 2011, the OECD said. Euro zone GDP should rise 0.9 percent in 2010 and 1.7 percent in 2011 after a downturn of 4.0 percent in 2009, it said. Japan could expect GDP growth of 1.8 percent in 2010 and 2.0 percent in 2011 after a drop of 5.3 percent in 2009, it said...”. Moreover, they quoted the OCDE report several times which give the impression of giving the OCDE opinion without to many bias from the author: quote from the article “"The upturn in the major non-OECD economies, especially in Asia and particularly China, is now a well-established source of strength for the more feeble OECD recovery," said the OECD…”. From my point of view, Reuters’s article was better and more complete, providing the reading a better global overview.
The Deutsche Welle, which Germany's international broadcaster (can be compare with the BBC), published “Euro zone emerges from recession, as Asia leads recovery” (Trinity Hartman, Nov. 19th 2009). A quiet short article, but well written and well structured. The article focuses mainly on European concerns. They started the article with the growing growth forecasting contrasting it by a raising unemployment rate for the Euro zone. They quoted the OCDE report as well, but still focusing in European concerns: quote from the article “"The sharp contraction in euro area activity appears to have ended sooner than anticipated … However, headwinds from financial sector deleveraging and rising unemployment suggest that the recovery will be gradual," the OECD said”. The rest of the article was divided in the parts, rising unemployment and Asia leads the way. From their point of view it was obviously the two major concerns. In my opinion, it’s a very good article, giving not too many numbers so that everyone could understand the major facts.
Finally, the Telegraph published “OECD urges governments to sort out finances as recession recedes” (Edmund Conway, Nov. 19th 2009). The article spoke only about the European recovery, hiding the Asian side of the story. Later on, they spoke about the major British concerns. It was, from my point of view, the worse article I red covering the topic. It was relatively bias, giving British people false hope of a fast British recovery. They presented the story in a way that actually if the united Kingdom was not doing so well, it was because of the governments. The reader could find out quite easily that this newspaper is right-wing (conservative) and against the current government.
To conclude, I would recommend for this story to read The Deutsche Welle for readers who do not want to go deeper in the details and numbers. On the other hand, for readers who prefer to understand and who prefer to go deeper in the numbers’ details, I would suggest to read the Reuters’ article, which gave the best analysis.
Q. Piloy
Sources:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=act.kJSAK5wA
http://www.reuters.com/article/companyNewsAndPR/idUSLJ30532620091119
http://www.dw-world.de/dw/article/0,,4909081,00.html
http://www.telegraph.co.uk/finance/economics/6604331/OECD-urges-governments-to-sort-out-finances-as-recession-recedes.html
This news has been reported by several media organizations around the world. Some of them focused on the fact that Asia will lead industrialized economies out of the recession others focused on the problems that Europe and the United States will have to manage: a growing debt and unemployment rate. In addition, some newspapers focused more on the Asian economies performances while others focused more on European and American faster recovery than predicted. In my opinion, both side of the news story are relevant. It depends more on what the author wanted to underline. As you know, this blog attempts to underline the shifting economical and financial power from the West to the East. By implication, from my point of view, the Asian side of the news will be more relevant.Referring to my experience as blogger, statistics and numbers are difficult to comment. Nevertheless, the meaning of these numbers and the impacts of them could be interesting to analyze. First of all, Asia is taking more and more economical power in the world with growth rate that are twice or three times bigger than European and American growth rates. Moreover, due to Asia, world trade will raise by 6% in 2010. Since September, together we have experience through the news stories this shifting to the East. Secondly, Europe and the United States are slower and will face huge debt and a growing unemployment rate. This means that in a certain way, they will lend money to emerging economies to finance their debt and stimulus employment plans. Consequently, they will be more and more dependent on Asian economies. Several years ago, it was other way around. Finally, the gap between Europe (growth of 0.9% Euro zone) and the United States (growth of 2.5%) is significant. Are European leaders worse? Why can Europe not succeed in a fast-faster- recovery process? One of the possible answer could be the too strong European currency. It should be said that these numbers are predictions. Before doing further analyzes, we should wait until next years to experience what will really happen. Let’s hope that Europe will do better than predicted.
As I wrote, this new story has been reported by several newspapers. Bloomberg and Reuters presented the news in a quiet different way, which is, not usual. Bloomberg wrote “OECD Doubles 2010 Growth Forecast as Global Rebound Accelerates” (Mark Deen & Simon Kennedy, Nov 19th 2009). As the headline suggests, Bloomberg chose to stress the rise of the growth forecasting of Asia, Europe and the United States more than the fact that Asia lead industrialized economies out of the recession. They provided a complete analysis with numbers and percentages. By contrast, Reuters published “Asia helps feeble West in global recovery –OECD” (Nov 19th 2009). The headline speaks by itself. They underlined in their introduction the fact that Asia takes a dominant position. Further down the article, they provided a elaborate description of growth rates for the United States, Euro zone, Japan and China: quote of the article “U.S. growth, measured by gross domestic product, should rise 2.5 percent in 2010 after a contraction of 2.5 percent in 2009, and rise a further 2.8 percent in 2011, the OECD said. Euro zone GDP should rise 0.9 percent in 2010 and 1.7 percent in 2011 after a downturn of 4.0 percent in 2009, it said. Japan could expect GDP growth of 1.8 percent in 2010 and 2.0 percent in 2011 after a drop of 5.3 percent in 2009, it said...”. Moreover, they quoted the OCDE report several times which give the impression of giving the OCDE opinion without to many bias from the author: quote from the article “"The upturn in the major non-OECD economies, especially in Asia and particularly China, is now a well-established source of strength for the more feeble OECD recovery," said the OECD…”. From my point of view, Reuters’s article was better and more complete, providing the reading a better global overview.
The Deutsche Welle, which Germany's international broadcaster (can be compare with the BBC), published “Euro zone emerges from recession, as Asia leads recovery” (Trinity Hartman, Nov. 19th 2009). A quiet short article, but well written and well structured. The article focuses mainly on European concerns. They started the article with the growing growth forecasting contrasting it by a raising unemployment rate for the Euro zone. They quoted the OCDE report as well, but still focusing in European concerns: quote from the article “"The sharp contraction in euro area activity appears to have ended sooner than anticipated … However, headwinds from financial sector deleveraging and rising unemployment suggest that the recovery will be gradual," the OECD said”. The rest of the article was divided in the parts, rising unemployment and Asia leads the way. From their point of view it was obviously the two major concerns. In my opinion, it’s a very good article, giving not too many numbers so that everyone could understand the major facts.
Finally, the Telegraph published “OECD urges governments to sort out finances as recession recedes” (Edmund Conway, Nov. 19th 2009). The article spoke only about the European recovery, hiding the Asian side of the story. Later on, they spoke about the major British concerns. It was, from my point of view, the worse article I red covering the topic. It was relatively bias, giving British people false hope of a fast British recovery. They presented the story in a way that actually if the united Kingdom was not doing so well, it was because of the governments. The reader could find out quite easily that this newspaper is right-wing (conservative) and against the current government.
To conclude, I would recommend for this story to read The Deutsche Welle for readers who do not want to go deeper in the details and numbers. On the other hand, for readers who prefer to understand and who prefer to go deeper in the numbers’ details, I would suggest to read the Reuters’ article, which gave the best analysis.
Q. Piloy
Sources:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=act.kJSAK5wA
http://www.reuters.com/article/companyNewsAndPR/idUSLJ30532620091119
http://www.dw-world.de/dw/article/0,,4909081,00.html
http://www.telegraph.co.uk/finance/economics/6604331/OECD-urges-governments-to-sort-out-finances-as-recession-recedes.html
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