... economy is in a recession. The world economy is made of 4 major economies in the world: * USA * Japan * Germany * UK The table below shows the GDP growth rate over the last three years: 1999 2000 2001 USA 4.5 4.2 1.2 Japan 1.8 2.4 -0.4 Germany 1.4 3.0 0.6 UK 3.5 3.1 2.2 Source: www.worldbank.org The table clearly outlines that the world economy is declining, there have been many factors for this. These four economies set the trend for many of the other smaller economies, it is often said "If America catches a cold then the other countries will sneeze." During the 1990's the major economies were at different stages in their cycles. The Asian economies (Japan, Hong-Kong, Singapore and Taiwan) were collapsing. Many investors withdrew their capital from these economies. This capital was then injected into the fast growing American economy. The 1990's were famous for the Internet revolution, which lead to dot com companies. Capital was pumped into this bubble as ...

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