Economic impacts and responses in Brazil, India and China from economic crisis of 2008

Abstract

In recent years, the world economy has been facing a lot of downward trends and this is stillgoing on. In today’s world each country has some or the other trade relationship with eachother. Many countries are dependent on others for import and export of goods and services. Insuch a condition the spillover of the downward trend is expected. The result of such downwardtrend is that the domestic economy suffers a lot and which leads to economy going in slow ornegative growth path. The recessionary pressure that has started in 2007 still has its effects andit has moved from one part of the world to other. USA, Europe and Asia too has been facing theimpact and because of slow recovery the impact of policy changes are taking much longer timeto have their desired impact than expected.In this recessionary environment it is worth to look into one of the economic group formedamong the emerging countries. The composition of countries looks as if they are similar but it isrequired to analyze if each of these behave and perform similarly or not. This report deals with3 countries out of BRIC group formed by Brazil, Russia, India and China. The report contains thedetails regarding Brazil, China and India. The group was created based on the fact that they arelarge emerging market and have similar problems. This report traces the recessionary effect of2007 financial crisis in USA, the impact on macroeconomic indicators, policy responses fromgovernments, after effect of policy changes, domestic factors prolonging the recession and findout if the there exists a convergence in terms of the behavior of responses and growth.