Throughout the time of the global downturn, the corporate world was constantly in search of a way out of the business meltdown and start getting back the profits again. Outsourcing to India came as a boon to the software development fraternity as it delivered topnotch solutions in economic budgets.
Posts Tagged ‘global downturn’
Outsourcing to India The shining star in the gloomy sky Posted By : opheliaalina
Great exportations
China overtakes Germany to become the biggest exporter of all
CHINA’S rise has long appeared inexorable. Despite a decline in total world trade, China has seen its exports fall less than those of other big powers. A new report by the World Trade Organisation calculates that the total value of merchandise exports fell by a staggering 23% in 2009. Among the top ten exporters, Japan’s shipments were worst affected (falling by 26%). Although China’s exports also fell (by 16%), the contraction was less painful than in Germany (down by 22%). As a result China is now the single largest exporter. The global downturn has helped to reduce global imbalances; the leading three exporters accounted for 26.7% of total world exports in 2009 down from a third of the total in 2008. The WTO expects trade to rebound by nearly 10% this year.
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China overtakes Germany as world’s largest exporter
China’s exports rose 17.7 percent in December, state media has reported, suggesting the country has overtaken Germany as the world’s largest exporter. The rise, compared to a year earlier, breaks a 13-month decline in trade as a result of the global downturn.
Sky One Holdings issues profit warning
Sky One Holdings has issued a profit guidance with respect to the unaudited financial results of the group for the half year ended Sept 30, 2009 (1HFY2010).
The directors say they expect the group to show a loss for 1HFY2010 due to the prolonged effects of the global downturn. The group’s operations continued to be adversely affected for the first quarter of FY2010 and despite a slight pick-up in business in the second quarter of FY2010, margins remained depressed.
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G20 has tough agenda in Pittsburgh
Leaders of the world’s 20 top economies gather today in the U.S. city of Pittsburgh to grapple with the aftermath of the worst global downturn in generations. Security concerns and that other problem when world leaders come to town – traffic snarlups – have meant a strong police presence as the city prepares to be the centre of world attention for two days.
Lenovo makes third straight loss
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Lenovo, the world’s fourth largest personal computer maker, has reported a loss and says it has not seen the bottom of the economic downturn.
The Chinese company made a loss of $16m (£9.4m) between April and June, its third straight quarterly loss, compared with a profit of £110m a year ago.
The main reason was a big fall in sales, which fell to $3.5bn, down almost 20% from a year earlier.
The results were, however, better than analysts had expected.
"Lenovo showed strong progress this last quarter but we still face numerous challenges," said the company’s chief executive Yang Yuanqing.
But Mr Yang said that the downturn was making trading conditions tough.
"The global economic crisis continues to significantly impact our core commercial customers. We cannot say we have seen the bottom of the global downturn," he added.
Indeed the drop in sales was largely due companies reining in their spending.
"There’s little evidence of a pick-up in corporate spending, and that’s the biggest worry," said Edward Yen at UBS.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Indian exports fall by 28 per cent
Recording a slip of 28 per cent in exports in June, India’s overseas sales fell for the ninth successive month due to the global economic slump, government data revealed on Monday.
Amid shrinking demand for made-in-India goods, shipments slid 28 per cent to 12.8 billion dollars from 17.73 billion dollars during the same [...]
Australia PM warns party of rising job queues ahead poll
Australian Prime Minister Kevin Rudd on Thursday warned his ruling Labor party of the political risk of rising unemployment ahead of the next election due in 2010, despite the economy rebounding from the global downturn. Australia’s commodities-fuelled economy has avoided the worst of the
Red all over
Mapping the global recession
MOODY’S Economy.com has mapped the geographic spread of the worst global downturn since the Depression. All of North America is in recession now. In Europe only Norway, Slovenia and Slovakia have avoided a similar fate, although Moody’s reckons these countries are on the brink of a downturn. Emerging Asia looks cheerier, although the small export-led economies of Singapore and Hong Kong are shrinking, as are Malaysia and Thailand. Even the BRICs are looking a bit diminished, with downturns in both Brazil and Russia. At least India and China are growing (the latter at a pace that is causing worries about overheating). Data for Africa are spotty but the continent’s biggest economy, South Africa, is in recession. The IMF expects global GDP to shrink by 1.4% this year, with rich countries’ economies contracting by around 3.8%.
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Microsoft To Kill Soapbox, Its YouTube Competitor
Microsoft has announced plans to shut down Soapbox, its online-video competitor to YouTube, by the end of August. Despite Soapboxs presence, Microsoft had only 2 percent of the online video market, placing it fifth behind Yahoo, Hulu, Fox Interactive Media and Google. As it readjusts its corporate strategy amidst a severe global downturn, Microsoft has killed a number of legacy programs, including Popfly, Encarta and Money Plus.
– Microsoft will shut down Soapbox, its online-video competitor to YouTube, by the end of
August. The decision follows weeks of publicly acknowledged debate over whether
to continue operating the portal, which delivered Microsoft a paltry share of
the online-video market.
According to a Micro…
UN faces $5bn aid gap in recession
Half-yearly report says members countries have less funds to spare while poverty is on the increase in developing world
The United Nations is warning of a $4.8bn (£2.9bn) shortfall in funding to tackle humanitarian crises in the world’s poorest countries, as the credit crunch leaves developed world governments with little cash to spare.
Delivering its half-yearly update about emergency fund-raising, John Holmes, of the UN’s Office for the Co-ordination of Humanitarian Affairs, said that while the UN’s emergency appeals had received more funds than at the same time last year, the economic crisis was exacerbating poverty and increasing need.
“It is clear that the global recession puts pressure on the aid budgets of all donor governments, but of course it puts immeasurably more pressure on crises-stricken people in poor countries,” he said.
The UN has raised a total of $4.6bn over the past six months for its humanitarian appeals – but Holmes said it had identified $4.8bn of “unmet needs” – the biggest gap ever.
Holmes compared the shortfall in funding for the world’s poorest people with the vast sums spent by the US, UK and other developed countries on bailing out their banking sectors.
“If just a fraction of the hundreds of billions of dollars recently committed by governments to private financial institutions were allocated to humanitarian action, these appeals could already be fully funded, and those in need could be getting the best available protection and assistance, on time,” Holmes said.
He singled out Kenya, Palestine and Zimbabwe as states whose financing needs have become more severe over the past six months, and said the UN is keen to raise more resources during the rest of the year.
Holmes said humanitarian needs in just one country, Somalia, had decreased recently – but only because a food aid project had been cancelled due to rising insecurity for the staff working on the ground.
Aid agencies have repeatedly sounded the alarm since the global downturn began last year about the disproportionate impact on poor countries, which often rely heavily on export earnings.
World trade volumes have collapsed over the past six months, and unlike their richer counterparts, governments in the developing world find it hard to raise funds on international capital markets. Only a small proportion of the funding pledged at the G20 summit in London earlier this year to combat the impact of the crisis was targeted at the world’s poor.
Italian prime minister Silvio Berlusconi came under international pressure in the run-up to the G8 summit he hosted in L’Aquila earlier this month, after cutting Italy’s aid budget.
At a recent conference in New York, organised by the president of the UN general assembly, member-states pledged to offer extra aid, but little has so far been forthcoming.
Crisis resistant or crisis prone?
Uzbekistan’s economy is growing but so are the risks
The Uzbek authorities claim the economy has been barely affected by the global downturn, with GDP growing by 8.2% year on year and 500,000 jobs being created in January-June. However, signs of stress are apparent across the economy: output has stagnated or contracted in the main sectors while the population’s mainstay—remittances from workers abroad—have fallen by nearly a third over the last year. The authorities are responding to this with measures to protect jobs and boost living standards. Yet with 40% of the 20m population under 16 years of age, the Uzbek economic model in its current guise may not be sustainable.
Uzbekistan’s GDP grew by 8.2% year on year in the first half of 2009—according to Shavkat Mirziyoyev, Uzbekistan’s prime minister, at a cabinet meeting held on July 17th. A day later it was reported that 534,600 jobs were created in the first six months of the year, including 328,000 jobs in rural areas. If these figures are to be believed, Uzbekistan is among the best performing economies in the world at present. The authorities have for months stressed that the economy is well-placed to ride out the global downturn, as a result of the extensive controls the government has maintained. The official GDP growth forecast for this year is in the range of 7-9%; and on a visit to the country in June, an IMF delegation concurred with that assessment. …
Signs of life
Singapore’s economic prospects remain precarious
Singapore’s export-oriented economy, one of the most exposed to the global downturn, rebounded in spectacular fashion in the second quarter, according to a preliminary government estimate. However, much of the improvement was the result of potentially temporary factors. The city-state will not fully recover until the global economy returns to health—although Singapore’s unusual reliance on external trade also means that its economy is likely to be one of the first to rebound when export demand picks up.
According to an advance estimate released by the Ministry of Trade and Industry (MTI) on July 14th, Singapore’s seasonally adjusted real GDP grew at an annualised rate of 20.4% compared with the previous quarter. Data for the first three months of the year were also revised upwards, to the effect that GDP in January-March is now estimated to have contracted by an annualised 12.7% compared with the fourth quarter of 2008 (an improvement from the 14.6% contraction reported in the MTI’s previous GDP release, in May). …



