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‡ 1.World Economic Growth
‡ 2.Industrial Production
‡ 3.Merchandise Trade
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‡ Process by which a nation's wealth increases over time.
The most widely used measure of economic growth is the
real rate of growth in a country's total output of goods
and services(gross domestic product or GDP)
OR
‡ Rate of economic growth is influenced by natural
resources, human resources, capital resources, and
technological development in the economy along with
institutional structure and stability. Other factors
include the level of world economic activity and the
terms of trade.
Developed economies and countries with
economies in transition recorded the largest
contraction of 3.4 per cent and 6.3 percent
respectively.

While GDP growth in China & India remained

positive(8.7 and 6.6 percent respectively).

Other emerging developing economies such as

Brazil & South Africa, suffered GDP contractions.

The least developed countries(LDCs) have fared

better as their economies have continued to
grow.
°or these countries ,a decline in economic
growth constitutes a considerable setback to the
attainment of millennium development
goals(MDGs), including the goal of poverty
alleviation .

By the end of 2009,developing countries had

suffered an income loss of at least $750 billion
and by end of 2010,the crisis will have increased
by 64 million.
The outlook for developing countries is much
brighter, with China, India and Brazil leading
the way.

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 The slowdown is expected to continue
into 2011 and 2012 as weaknesses in major
developed economies continue to provide a drag
on the global recovery and pose risks for world
economic stability in the coming years.

World gross product (WGP) is forecast to

expand by 3.1 per cent in 2011 and 3.5 per cent
in 2012

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Leading indicator of demand for maritime transport
services-has recovered from fall in 2009 which
demand for raw materials and energy, both
mainstays of demand for shipping services .

OECD- Organization for Economic Cooperation and

Development industrial production index had grown
to 97.3 from 92.5 in 2009.

China¶s industrial production grow at an annual rate

of 11.1 per cent in 2009,and 13.0 per cent in 2008.
‡ During the second quarter the industrial
production index(IPI) for brazil averaged 115.3
when compared to 100.8 in 2009

‡ °or India the IPI is 147.7 in 2010 when

compared to 132.3 in 2009
‡ Republic of Korea also expanded during second
quarter of 2010 with 19.4 per cent, as compared
with 3.3 per cent in 2008 and zero production
growth in 2009.
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In year 2008,referred as ³Great Trade Collapse´
and consequent economic downturn where
world merchandise exports fell by 22.9 per cent.

The total loss in world trade over 2008-2010 is

estimated at $5.0 trillion, or about 12.7 per cent
of world output in 2009.

The volume of merchandise exports dropped

seven times more rapidly than global GDP where
estimates between 2 (1960s)and3.4(1990s).
Developing countries have recorded a drop in export
and import volumes of 11.7 per cent and 9.5 per cent
respectively.

The largest drop in merchandise imports volumes was

recorded by oil and mineral exporters.

India is expanding its link with many African

countries, both through foreign direct
investment(°DI) and trade.

The free trade agreement between the Association of

Southeast Asian Nations(ASEAN) and china, ASEAN
and Australia-New Zealand, ASEAN and India.
The comprehensive Economic Partnership
Agreement concluded between India and the
Republic of Korea, the free trade agreement
between the European Union and the Republic
of Korea.

The World Trade Organization(WTO) expects

world export volumes to rebound and grow at
9.5 per cent in 2010.

China overtook Germany as the world¶s leading

exporter in 2009,with a share of 10.0 per cent of
world merchandise exports .
Reasons for large in balance in the growth rates
due to
Ship supply and demand
Climate change challenge
Piracy and maritime security
Energy and bunker fuel prices
Transport costs
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