What Are The Consequences Of The Economy Crisis?

The world economy crisis will finish in 1,5-2 years. The world economy will have been in recession by that time.

The direct disadvantage of the economy crisis in the USA and other countries is the deficit of the loan means and therefore high credit rates. At the zenith of the economy crisis the interest rates of different counties can reach 7-10% of the annual income: in September LIBOR rate was 5-6,8% of the annual income.

One of the main consequences of the world economy is the disappearance of the hugest investment banks. Classic investing bank does capital formation of the investors to the companies, municipalities and governments. But gradually they began to earn not only by intermediary but by their own investment. By the economy crisis time the correlation Debt/Equity of the banks was 30/1. It leaded to bankruptcy of many banks.

So, what are the consequences of the world economy crisis?

1 Banks demands toughening to private and corporate borrowers; the turn of the small and average companies to the encash accounts while dealing; the refuse of the majority of the commercial banks from free credit cards and loyalty programs and bank products discounts.

2 Foreign banks and developing countries business companies crediting quantity lowering

3 The growth of the credit rates all over the world: up to 10% in developed countries, in the developing ones up to 20% and higher.

4 Home consumption growth slowdown in the United States and Europe. As the result – global commercial production and gross domestic product growth slowdown.

5 Investors refuse from high risk investments, the lowering of the investments to the fond markets of the developing countries because of the high riskiness.

6 The appearance of the world fond centers in China and the south-eastern countries.

7 The dollar weakening for 2-3 years.

Prognosis
According to the International currency fond prognosis the growth of the global gross domestic product will slow from 5% to 3% in the year 2009. Inflation will also slow to 2% in the developed countries, 7,8% in the developing ones in the year 2009.