Positive And Negative Effects Of The Global Economy

According to business dictionary, global economy is defined as any world-wide economic activities between various countries that are inter linked and can have both positive and negative effects upon other countries (“What is global economy? Definition and meaning”, 2016).

The global economy is an ever changing phenomenon. Its unstable nature has many impacts on lives of entire world population. When the global economic crisis occurs, it affects living of all people especially those living in least developed countries. According to a recent report of the United Nations, since the onset of the global financial crisis, developing countries generated much of the global output growth. The group of least developed countries (LDCs) is experiencing a modest slowdown of their economies, with growth rates falling from 5.1 per cent in 2014 to an estimated 4.5 per cent in 2015. Diminished export demand from developed countries, lower commodity prices, net capital outflows, and weak investment growth and, in some cases, military conflicts, natural disasters and adverse weather effects on agricultural output are the causative factor for the slowdown of economy. The global inflation has made living worst in poor nations. The report from the United Nations demonstrates that the moderate pace of global growth, in an environment of weak investment growth, has failed to create a sufficient number of jobs to close the gap in the employment rate (employment-to-population ratio) that opened up