Whats wrong with the world economy

Whats wrong with the world economy: After going through all the possible reasons I found that the potential economic engines besides the United States, Europe and Japan are stagnating. Emerging markets, from China, Indonesia to Brazil, are in deep trouble. Undoubtedly, it is only the US economy, which accounts for about a third of world output, which is dragging the world economic growth.

With the current economic scenario top leading ratings agencies have warned these countries to reduce its net debt-to-GDP ratio quickly or facing losing its coveted AAA debt rating.

At this point the question arises.....Is the global economy out of the woods? Two years after near-meltdown, with the U.S. looking sluggish, equity markets unsteady and Europeans combating a debt crisis.

US = 99% to GDP

Japan = 229% to GDP

India = 68% to GDP

Brizil = 65% tp GDP

China = 17% Tp GDP

Looking at the data provided by the IMF we believe there is a significant risk of a double-dip downturn in the United States as well as in Japan and many European countries which will slowdown the world engine drivers. The global scene is so dismal that the World Economic Outlook thinks growth in the advanced countries in 2011 and 2012 will be lower than it was in 2010.

A brief on Debt-to-GDP ratio: In economics, the debt-to-GDP ratio is one of the key indicators of the health of an economy. It is the amount of national debt of a country as a percentage of its Gross Domestic Product (GDP). A low debt-to-GDP ratio indicates an economy that produces a large number of goods and services and probably profits that are high enough to pay back debts. In general terms Debt-to-GDP measures the financial leverage of an economy. Governments aim for low debt-to-GDP ratios and can stand-up to the risks involved by increasing debt as their economies have a higher GDP and profit margin.

List of high debt leveraged economies

Country in % of GDP	2011	2012E	2013E	2014E	2015E	2016E
Japan	229.08	233.37	238.04	242.392	246.654	250.475
Saint Kitts and Nevis	191.94	189.96	187.888	186.701	186.247	186.681
Greece	152.32	157.65	156.951	152.52	149.386	145.469
Jamaica	137.13	129.55	118.754	107.469	87.461	80.487
Eritrea	134.71	128.03	125.272	122.311	125.711	125.221
Lebanon	133.82	134.17	136.6	138.656	140.756	142.561
Italy	120.25	119.98	119.723	119.265	118.725	117.976
Barbados	114.24	114.24	114.909	115.656	115.779	115.706
Ireland	114.07	121.51	125.765	124.959	123.478	121.468
Grenada	110.6	104.66	100.159	95.227	88.931	82.743
Iceland	103.21	97.066	92.067	85.342	80.912	73.759
United States	99.519	102.9	105.597	107.534	109.393	111.911
Belgium	97.337	97.401	97.753	98.194	98.343	98.799
Singapore	93.651	91.262	88.45	86.136	83.852	82.872
Portugal	90.554	94.619	97.512	100.819	103.738	106.533
Antigua and Barbuda	90.327	87.703	83.372	76.082	70.981	64.089
Sao Tome and Principe	89.02	90.528	91.439	91.448	66.382	62.435
Guinea	88.691	87.271	89.773	94.85	94.743	95.564
France	87.624	89.658	90.303	89.773	88.533	86.682
St. Vincent and the Grenadines	87.142	85.908	82.957	78.752	74.159	69.401
Cape Verde	85.944	89.425	87.15	81.716	75.568	70.754
Canada	84.197	83.082	81.038	78.461	75.595	72.62
Dominica	83.426	79.6	75.491	71.501	67.755	64.166
United Kingdom	83.033	86.493	87.44	86.544	84.392	81.339
European Union	81.762	82.783	82.815	82.06	80.898	79.449
Seychelles	80.275	74.899	66.42	58.845	53.528	47.156
Germany	80.11	79.435	77.863	75.811	73.759	71.872
Belize	79.723	78.21	77.154	76.305	75.556	75.086
St. Lucia	79.623	79.941	80.769	81.053	81.101	81.15
Nicaragua	79.569	75.117	70.046	65.374	60.204	55.661
Hungary	76.631	76.86	77.12	76.795	76.008	75.276
Egypt	74.874	73.736	70.884	67.653	64.257	60.272
Israel	72.98	69.961	67.495	64.791	62.566	60.56
Zimbabwe	70.503	66.933	64.855	63.373	61.449	52.251
Austria	70.496	70.747	70.912	70.502	70.139	69.817
India	68.201	67.678	65.277	63.327	61.579	59.887
Maldives	67.577	75.224	81.164	90.242	99.592	108.951
Malta	66.67	66.706	66.184	65.375	64.618	63.863
Kyrgyzstan	65.951	68.197	69.184	67.573	66.975	66.268
Brazil	65.712	64.984	63.826	62.067	60.325	58.624
Netherlands	65.647	66.478	66.653	66.467	65.743	64.371
Spain	63.922	67.069	69.855	72.1	74.063	75.944
Sudan	63.382	61.733	59.81	57.965	56.026	50.728
Cyprus	63.362	63.947	64.18	63.664	62.761	62.161
Guyana	62.327	61.762	62.023	62.1	61.171	60.487
Jordan	61.95	62.096	61.938	61.739	61.31	60.539
Albania	59.892	60.401	60.647	60.683	60.909	61.082
Fiji	58.882	58.772	58.455	57.667	56.632	54.134
Lao People's Democratic Republic	57.607	54.93	53.042	51.153	49.037	45.831
Djibouti	57.167	55.441	53.862	52.218	50.627	49.303
Poland	56.567	57.267	57.504	57.352	56.536	55.537
The Gambia	55.535	53.599	50.829	48.268	45.056	42.099
Malaysia	55.073	55.83	56.469	56.887	57.167	57.32
Norway	54.257	54.257	54.257	54.257	54.257	54.257
Pakistan	54.114	50.939	49.503	47.777	44.491	41.163
Morocco	52.804	53.83	53.992	53.796	53.049	51.686
Uruguay	52.791	50.175	47.577	45.058	42.03	39.733
Switzerland	52.665	51.221	49.686	48.324	46.999	45.711
Kenya	52.305	50.913	49.597	48.945	48.331	47.006
Vietnam	51.514	51.021	50.144	49.081	47.888	46.7
Mauritius	51.424	52.101	50.407	48.883	47.165	45.178
Mauritania	51.266	49.423	49.167	50.08	49.15	46.205
Finland	50.793	52.672	54.984	57.278	59.238	61.098
The Bahamas	50.701	53.417	55.202	56.376	57.389	57.221
El Salvador	50.607	50.402	49.209	47.888	46.616	45.434
Sierra Leone	49.871	42.996	42.711	42.805	43.634	43.608
Trinidad and Tobago	49.257	49.795	50.237	51.632	53.71	56.327
Comoros	47.897	43.861	39.972	36.023	32.241	28.929
Tanzania	47.508	48.928	49.619	49.584	49.012	48.136
Philippines	46.975	45.96	44.311	42.813	41.393	40.066
Burundi	46.204	39.8	35.655	33.531	30.651	39.777
Myanmar	45.996	47.85	48.754	49.217	44.682	44.188
Armenia	45.623	40.007	40.115	33.586	34.137	28.692
Denmark	45.585	46.515	46.251	45.075	42.95	40.179
Guinea-Bissau	45.516	43.297	40.841	37.377	34.475	33.601
Slovak Republic	45.054	46.247	46.514	46.753	46.23	45.703
Croatia	44.121	47.55	50.199	52.422	54.254	55.688
Thailand	43.676	43.959	43.926	43.76	43.476	42.994
Lithuania	43.519	45.449	47.698	49.524	50.967	52.105
Montenegro	43.073	42.203	41.094	39.931	38.562	37.708
Tunisia	42.798	42.778	41.585	39.988	37.812	35.517
Ukraine	42.561	43.495	41.527	39.461	34.969	30.693
Latvia	42.477	41.007	39.809	38.06	36.778	36.192
Lesotho	42.395	46.149	46.933	46.599	44.717	46.67
Slovenia	42.323	44.947	46.715	48.02	49.311	50.607
Mexico	42.309	42.137	41.992	41.886	41.556	41.366
Ghana	42.269	42.703	42.959	42.118	41.914	42.804
Yemen	42.037	44.316	45.908	47.169	47.921	47.386
Costa Rica	41.964	42.83	43.772	44.675	45.456	46.16
Georgia	41.694	41.783	40.109	38.76	38.641	37.981
Czech Republic	41.652	43.356	44.512	45.553	46.546	47.573
Bosnia and Herzegovina	41.383	41.411	38.202	33.063	27.646	23.099
Ethiopia	41.369	40.658	39.566	38.329	36.742	34.295
Argentina	40.714	36.65	35.776	35.323	34.269	31.427
Serbia	40.459	39.808	37.817	35.254	32.716	30.169
Senegal	40.226	41.771	42.819	43.545	43.724	44.16
Venezuela	40.175	42.135	43.834	45.533	47.231	48.924
South Africa	39.551	41.724	42.792	42.515	41.075	37.896
Turkey	39.406	37.571	36.432	35.439	34.681	33.961
Iraq	38.868	33.645	28.988	26.591	25.165	20.456
Malawi	38.785	36.984	35.149	33.329	31.592	29.688
Panama	38.331	35.542	33.192	30.912	28.778	26.07
Madagascar	38.082	37.992	38.259	38.611	39.297	39.664
Taiwan	37.948	36.842	35.08	33.43	31.875	30.357
Romania	37.803	37.711	37.462	36.818	35.96	35.005
Sweden	37.296	34.891	32.21	29.324	26.153	22.807
Tajikistan	36.461	37.239	37.961	37.915	37.626	36.184
Colombia	36.308	35.407	33.966	32.687	31.47	29.854
Mozambique	36.216	40.088	43.317	46.118	48.616	49.453
New Zealand	35.781	36.372	36.498	36.146	33.746	31.676
Bolivia	34.273	32.806	32.263	31.893	28.498	26.092
Democratic Republic of Congo	34.158	39.169	39.348	40.926	40.455	40.058
Nepal	33.144	32.696	32.55	32.457	32.359	32.335
Liberia	31.032	30.23	32.166	36.251	37.851	42.155
Moldova	30.39	32.421	31.886	29.993	27.737	25.358
Cambodia	30.377	30.084	29.047	29.079	28.201	27.221
Chad	30.27	26.416	24.106	21.928	19.837	18.565
Uganda	30.262	30.11	29.251	28.491	28.018	29.34
Benin	29.99	28.976	27.53	26.132	24.748	23.993
Central African Republic	29.891	26.499	23.915	22.15	19.804	17.546
Burkina Faso	29.283	30.675	31.685	32.55	33.258	34.118
Korea	28.755	26.857	25.092	23.29	21.493	19.803
Mali	27.301	25.039	22.776	23.477	24.212	24.895
Republic of Macedonia	26.801	27.38	27.108	26.382	26.144	25.979
Honduras	26.455	26.389	26.974	27.299	27.12	27.2
Zambia	26.251	29.359	30.158	30.193	29.329	28.479
Angola	25.979	22.221	22.01	21.877	21.836	21.478
Dominican Republic	25.459	25.353	24.103	22.881	21.741	20.811
Indonesia	25.42	24.048	22.762	21.758	21.055	19.912
Belarus	25.303	27.058	29.479	29.842	31.763	32.741
Guatemala	25.118	26.054	26.924	27.894	28.869	29.772
Swaziland	24.979	29.295	31.889	33.191	34.238	34.406
Bahrain	24.772	22.722	23.606	25.891	29.501	32.859
Namibia	24.573	27.803	33.172	36.796	39.584	43.321
Togo	24.342	23.322	22.192	21.08	20.205	19.541
Syria	24.318	21.631	20.188	19.281	18.397	17.702
Australia	24.099	24.843	23.311	23.593	21.771	20.648
Rwanda	23.537	23.498	22.026	20.156	18.289	16.673
Solomon Islands	23.357	20.928	19.466	17.484	15.689	14.08
Peru	22.468	20.706	19.284	18.111	17.045	16.084
Ecuador	20.367	19.812	19.322	18.253	17.686	17.382
Suriname	20.042	18.551	18.56	17.129	15.547	13.772
Bulgaria	19.724	19.955	19.748	18.814	17.263	15.224
Niger	18.493	18.43	19.944	21.192	22.624	23.098
Luxembourg	17.899	19.497	21.167	22.382	23.38	24.107
China	17.089	16.268	15.004	13.387	10.85	9.721
Gabon	16.473	14.657	14.371	14.126	13.66	13.134
United Arab Emirates	16.381	14.489	13.734	13.047	12.194	11.39
Nigeria	16.216	18.519	21.1	18.635	16.673	14.759
Turkmenistan	16.181	21.304	19.069	16.65	12.157	7.006
Botswana	16.013	14.109	12.42	10.663	9.101	7.863
Cameroon	14.326	14.081	13.17	13.202	13.378	13.705
Qatar	13.348	12.763	12.688	12.52	12.312	12.19
Congo	12.98	12.429	12.998	13.37	13.604	13.667
Paraguay	12.801	12.333	12.001	11.665	11.139	10.67
Kazakhstan	12.589	14.056	15.282	16.245	17.368	18.11
Haiti	12.28	16.781	20.34	23.512	26.281	29.11
Uzbekistan	11.282	12.802	14.435	16.083	17.786	19.44
Chile	10.92	10.217	9.645	9.05	8.476	7.955
Azerbaijan	10.737	11.113	11.536	11.638	11.687	11.83
Iran	9.474	8.362	7.458	6.611	5.86	5.175
Russia	8.548	8.807	9.461	11.262	13.45	15.87
Equatorial Guinea	8.539	10.285	8.893	7.03	4.679	2.472
Saudi Arabia	8.309	7.13	6.225	5.295	4.442	3.718
Kuwait	7.959	7.306	7.005	6.5	5.974	5.469
Estonia	6.316	6.018	5.722	5.434	5.162	4.881
Hong Kong	4.528	4.173	3.718	3.523	3.339	3.154
Oman	4.066	3.238	2.493	1.812	1.161	5.151

Source: International Monetary Fund (IMF), World Economic Outlook Database of April 2011, for countries: