Archive for February, 2012
February 24th, 2012 | 
Author: A new study shows that the worth of the web economy in G-20 countries will increase dramatically by the year 2016. The study, by the group for mutual aid and consultation on matters pertaining to the international financial system, says the web economy presence of $2.3 trillion (in 2010) will grow to more than 4 trillion dollars. This will largely be driven by mobile devices, as mobile phones that can access the World Wide Web are becoming more and more easily accessible.
In October 2011, one report put Smartphone penetration in the market at 44% in the United States. This study goes on to show that more than seventy five percent of Internet users in 2016 will be accessing the web with a mobile phone.
Close to three billion people will be using the Internet. Around the end of 2008, there were about a billion Internet users worldwide, and around the end of 2010 that number reached 2 billion. Already, according to the study, more than a couple of million people go online for the very first time eachyear,.
The report found that companies that use the Internet to sell, market and interact, using tools like social media, grow faster than companies that do not. In the United States, businesses with a medium or high Internet presence are expected to grow by seventeen percent over the next few years, compared with twelve percent for other companies. While every business can benefit from economic growth like this, the research identifies certain companies, or internet ecosystems will try to tie users in to their customized part of the internet”, including Amazon, Apple, Facebook, Google, Baidu (China), Tencent (China) and Yandex (Russia).
Despite the current value of 2.3 trillion only compromising four point one percent of the total G-20 economies, the concept of a web or digital economy might soon be irrelevant. Digital technologies and the Internet are becoming so deep-rooted in business that the characteristic between the web economy and the economy as one whole is becoming distorted. In G20 countries, a study shows that the dissimilarity might just completely disappear by 2020.
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Washington DC: Other than promising to pump billions of dollars into the economy on key areas such as education, transportation and jobs, President Obama’s administration on Monday proposed 2.4 billion US dollars in economic aid to Pakistan for the financial year 2013.
USD 2.2 billion out of the 2.4 billion will be used to strengthen independent and public institutions that present a barricade against radicalism and support joint security and anti- terrorism initiatives, plus eight hundred million for the Pakistan Counter-insurgency Capability Fund, the State Department proclaimed a short time after the White House sent the budgetary proposal to Congress.
The state department continued by saying that the budget also proposes USD 197 million support to the US government’s civilian presence, as well as programs for engagement with civil society .
The budgetary proposals of President Barack Obama provides USD 8.2 billion in total for Overseas Contingency Operations to support the massive and momentary costs of public led programs and operations in Iraq, Afghanistan and Pakistan.
Before implementation, the budgetary proposals are for the financial year 2013 beginning on the first of October 2012 needs to be accepted by both chambers of the US Congress – the House of Representatives and the Senate.
In his proposal for this year’s budget, President Barack Obama also proposed 4.6 billion US dollars for Afghanistan. This comprises 2.5 billion US dollars in assistance for programs related to anti-terrorism-, economic expansion, over and above supporting progress in governance, health and education, agriculture and countering the narcotics trade.
President Barack Obama is working on how voters see his plan to, among other things, improve economic trends and whether or not they believe he deserves another four years in his current seat to pursue. The Republicans in the meantime are gearing up for a protracted battle.
Data released on February 1, 2012 has revealed economic trends indicating the impact of the European slowdown on the Asian economy. It has been revealed that as a result of the eroding demand from Europe has significantly hampered the export-driven economies of various Asian countries. This has in turn led to more pressure on policymakers to pace domestic growth to make up for the gap in demand.
The Dragon Feels the Heat
In China, which is a regional manufacturing and export hub, the factory activity showed flickers of improvement according to the government’s purchasing managers’ index, but new export orders have seen a dramatic decline from December and a statement released by the Finance Ministry stated that exporters faced “increasing difficulties”.
According to official figures, China’s PMI inched up to 50.5 in the month of January from the previously recorded 50.3, just managing to not go under the 50 level that separates expansion from contraction. All indicators seem to be pointing towards the fact the world’s second-largest economy, and a significant driving factor in South Asian economy at large, is feeling the heat from Europe’s debt crises.
Other countries in the region continue to face problems of a similar nature, as export orders are plummeting almost in the manner of a free fall. Even as European countries witness the problems widening into a recession, their troubles look all set to engulf Asian countries halfway around the world as for them, European trade is a mainstay.
Economic Trends in Rest of Asia
In South Korea for instance, the exports since January 2011 showed an alarming drop of approximately 6.6 per cent, all the more worrying given that pundits at the time had predicted a 0.7 per cent rise. The country’s exports to Europe in the first 20 days of January 2012 showed a marked depression from the exports of the same period last year.
Data due later on Wednesday is expected to show the euro zone’s factory activity contracted in January for a sixth straight month.
South Korea’s manufacturing sector activity and new export orders both continued to dwindle for a sixth straight month in January, the longest losing run in three years.
In Taiwan, faltering exports bit into factory activity which receded for the eighth straight month. The index rose to 48.9 in January from 47.1 in December.
Economic Trends: India Fares Better Among Regional Peers
The fact that India has managed to buck the sordid economic trends prevailing has presented a perfect example to regional counterparts as to how manufacturing that’s driven by domestic demand can withstand pressure from external factors.
Factory activity in India has grown at the fastest pace in eight months. Unlike most of its Asian peers, India’s economy is primarily driven by domestic factors and it is far less exposed to flagging export demand.
The PMI reading of 57.5 in January marked almost three years of expansion in the manufacturing sector and gave reason for cheer to an economy hurt by stricter monetary policies and the government’s policy paralysis.