Recession possible also in other countries by Martina Harvanova

The financial turmoil the United States are currently facing seems not to affect just the North-American world's leader, but its consequences touch another countries' environment as well. Not talking about developing countries such as China or India which are nowadays experiencing their welfare and boom mainly in outputs and economy, the biggest countries of the world with the greatest influence are overcoming a shaking and or possibly a slump in the economic area. Canada seems to be the next one to worry about how to forestall the recession. All the concerns about the possible recession came to the evidence last year. Before that the boom in construction was high, what ensured the expansion in providing the mortgages. But the current situation indicates that the rate of home construction started to slow down, the prices for the houses lowered. Consequently there is a need to guarantee for the mortgage with a higher value than just the house and the conditions for providing of mortgages tightened. Mortgage business belongs to one of the strongest ones in the northern continent, what is related to the life style of Americans to live in debit constantly. Indebtedness of households has rapidly grown in the recent past. While at the beginning of 90s it represented 80 per cent of their earnings, at the rise of new decade the percentage reached the figure of 100. Nowadays it's even more staggering - the indebtedness is on the level of 130 per cent. As you can see, according to the situation on the mortgage or building market, the possible scenario of the US recession seems to be really likely to happen. The only way how to solve the unpleasant situation is to force the government to take the needed steps to avert or at least to soften the recession. Hopefully, the worsening conditions in the North America won't have any deep influence on the European market.

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by Martina Harvanova for PocketNews (http://pocketnews.tv)

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