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1372 WordsAug 24, 20126 Pages
MACRO ECONOMIC AND COMPANY ANALYSIS ASSIGNMENT Macro Economic Scenario Analysis: If we have to pick any one country from the macroeconomic perspective, in the present challenging economic times all countries would compete to be in that position as each of them has its own set of challenges and opportunities. In light of all these possibilities we have chosen the regions of emerging Asia as our choice. This is because this is one region and economy which has shown very strong fundamentals and resistance to what was happening all across the world and around it and hence the very interest to look at the trend of this area. As we can see the growth was decent almost throughout this period except in 2011 where it started slowing down. One reason was supply chain issues with Japanese earthquake and the other was prolonged international poor market pressure. This can be seen even in the segments as well as it was electronics and automobile that was worse hit. Speaking especially about India, thanks to its huge domestic consumption and market it beat the very trend of current account surplus by continuously posting current account deficit. However due to its strong market we can see that is was very high on inflation front with average inflation in double digits during this year (Writer, 2011). This couple with mediocre single digit interest rates resulted in very costly loans and interest payment as real interest was negative. Despite all this attractive GDP and growth numbers were posted. What can be expected from them in light of the present challenging times is to keep the switch towards shifting the demand trend towards domestic aspects rather than the focus being on just growth i.e. sustainability over growth. The possible policy changes in this area could be increased flexibility in policy rates, tightened policy cycle and steps to curb the tremendous

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