USA

Negative indicators with the start of 2014 and China is about to be involved

The American economy started 2014 with high forecasts to realize a rate of growth different from those it realized in the last years but several factors decreased these forecasts by 0.1% in the first quarter of the current 2014 after their increase by 2.6% by the end of 2013. The production of factories in U.S.S also decreased by 0.8 % in the last month which is the biggest decrease since 2009 after an increase of 0.3 in last December with the sector being affected by an extremely cold weather indicated the weak start of the world’s biggest economy this year. The economy of U.S.A seemed to be fluctuated between high growth forecasts and negative and receding indicators, the activists in the economic and financial field fear their subsequent impact on its performance which translates the world’s largest economy where the American shares went down noticeably in the mid May in the Dow Jones Indicator of the shares of the American major companies which closed the trading session of the wall street stock exchange dipped by 42.47 points or 0.28% while Standard & Poor 500 indicator decreased by 8.31 points or 50% and Nasdaq Composite closed dipped by 6.37 points or 18% The Asset Management Company “PIMCO” reported on its investment vision that the American economy growth rate will not exceed considerably the level of 2% during the next few years. This report comes while the American Department of Commerce declared that the gross domestic product growth rate amounted to 2.5% in the first quarter of the current year compared with only 0.4% in the last quarter of the last year despite this percentage is less than the forecasts of the American government which desired this percentage to be 3.1%. Despite the fact that U.S.A is deemed to be a great economic power thanks to being capable of modernization, production diversification, the availability of the specialized manpower and creative persons enabling it to take pride of place in many sectors the most important of which is advanced Microtechnology such as aviation, space, electronics, weapons, microchemistry, the involvement of China and its appearance as a competitive economic power make it take the place of leadership as to the global economy after overcoming the Japanese economy in a manner make it suitable to play a crucial and responsible role to solve the complicated crisis of the global economy which Washington failed to solve.