Future Economic Stagnation for Rich Countries Essay

Future Economic Stagnation for Rich Countries - Essay Example This essay demonstrates the huge gap between rich countries and developing countries and provides factors and reasons for possible future economic stagnation for rich countries. There used to be a time when there existed a few rich countries who dominated the world economy and their contribution to the global GDP was around two-third. This means that the rest of the world was under developed and had a falling economy rate. Later, the world faced some crisis which shook the rich countries’ economy and at the same time helped the developing countries to grow at a high pace. This led to the possibility of economic stagnation of the rich countries in near future. In the current scenario, globalization has worked in favor of developing economies. Several developing countries, majorly Asian economies, are growing at such a high pace that the gap between the rich and the developing countries has shortened big time. Reasons of the possible future economic stagnation are: Recent Western Recession, Insufficient Supply and Slow Recovery from Financial Crisis (2008-2009). First recommendations for avoiding future economic stagnationis Improving Short-Term Demand and Efficient Supply. No country can recover from the financial crises in a short time. Second recommendation is Boosting Medium-Term Growth. The third recommendation is Role of Government, that should also put their effort and think more logically regarding the ways of supporting the demand and making better the supply which can in return increase the productivity.