Economic Decline & Crisis | Global Housing Sector Decline

By: Anne Catherine

Starting from 2002-2003, all the major economic sectors had experienced tremendous growth for a period of five years before economic stagnation and slump started to affect the global economy. First of all, the boom affected the US economy and gradually it started to influence the whole world economy. As it is evident that economic growth influenced the US economy first and then spread to other economies across the world, from this one can easily gauge the power and importance of the world economy.

With the boom in specific sectors like IT and real estate, money started to pour into the underdeveloped and developing countries. During this time, the economies of India and China underwent major changes and were suddenly catapulted to topmost slot among the developing economies. The huge population of these countries proved to be very helpful and fruitful for the progress of Indian and Chinese economies. The US saw great prospects in both these countries and still regards India and China as technological giants.

Currently, with India earning great reputation in IT, clients from the US as well as other western countries are showing tremendous enthusiasm to cash in on the Information Technology boom in India. Overseas clients now consider a reputed outsourcing Indian software company to be the perfect choice for any software task, be it or . However, both India and China have welcomed this outsourcing trend and India has benefited tremendously by earning a whopping amount of money. With revenues pouring into India, the per capita income of the middle class has also increased considerably.

Hiring services from India are also proving beneficial to the US as they are getting A- grade services at a comparatively cheaper rate from an Indian . The whole process is like a chain reaction. In the period when the US economy is experiencing unprecedented growth in all economic aspects, India and China are the two countries that are benefiting the most from it. However, in both these countries, the middle class is experiencing a major growth. With the increase in per capita income of the Indian and Chinese middle class, their lifestyles have become better. Today, the Indian youth can boast of a spending a significant sum on themselves which was unthinkable a few years back.

With the increase in middle class income, the real estate is also experiencing a boom. In India as well as in other countries, the housing sector has undergone development by leaps and bounds and rise of the real estate agents has further enhanced this development.
However, good times don't last forever. They are meant to be overtaken by bad times. The bright days that the global economy has witnessed primarily due to the boom in American economy, is now fading away, owing to the downward spiral in the same economy. Even the housing sector that basked in glory on account of overall economic boom is now witnessing a damp phase. The dismal state of affairs in the US economy has led to economic decline in the housing sector. The housing sector is actually bearing the brunt of deficits in the US and the economic decline in this sector has gradually started to unleash adverse effects on economies throughout the world. However, it is hard to believe that economic slump in a single country can unleash such shaking effects on economies all over the globe.

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