Economic report for 1979

ECONOMIC PERFOMANCE IN 1979

1979 was among the years when the world was recovering from the great depression caused by the Second World War . This year the growth abroad exceed the growth in the United States . This was a period when most countries were starting their economies afresh . There was a great internal organization and drafting of rules and regulation and plans to turn the economy around . There was also a great international response to the recovering world economy

This was the period of the cold war and the United States and

Russia together with their allies were in arms against each other fighting against capitalism or socialism . The war between the world powers was further extended to the developing countries and this had devastating effects on their economies as well . Some developing countries were cashing in from the support of the opposing powers and it was seen as the struggle for another colonization b this time it was t be economic colonization (Kuhn , 2006

Gross nation product in unite states and other countries

The gross national product defines the overall net worth of a country in terms of its revenues . The GNP has been used by world institutions like the World Bank to measure the economic well being of a country . In 1979 the GNP grew by 3 .3 in the United States compares to 3 .9 growth in other big six countries including Japan , Germany , Canada , United Kingdom , France and Italy

But in comparison to the previous years , the growth national product was recovering and making reap forward in terms of growth . The united state economy was starting to feel the pinch of the cold war . The economy was recovering and had performed relatively well compared to other previous years . The slow growth in economy was attributed to the heavy spending in the war and internal policies . Other countries were starting to recover from the effects of the war and their economies were recording massive growth

Inflation rate

Inflation rate narrowed due to anticipated slow growth in the United States and expected increased inflation in foreign countries . Inflation rate accelerated in the United States than the previous years due to the expected slow growth in the economy . In the same year , inflation was high in many countries of the world

The United Kingdom recorded an inflation rate of 12 .4 percent , the United Arab Emirates at 20 , United States at 7 .1 while Uruguay recorded the highest of 60 .5 . This rate of high inflation in major countries of the world was due to large spending during the wars and taking sides in the cold wars . It is to be noted that in some countries like Italy and United Kingdom , there was remarkable reduction in inflation rates due to relaxed constrain in fiscal polices

The pattern of changes defining growth and inflation rates was influenced by marked decline in the value to the dollars and consequent appreciation of most other major currencies . In the united states , a weak...