11 economies in decline

Brazil

Partial view of a Petrobras off-shore oil platform in Angra dos Reis, 180 km south of Rio de Janeiro.GDP: 5.23%
Inflation: 5.74%
Unemployment: 7.7%
Markets: -44.16%
Gallon of gas: $5.83
Interest Rates: 13.75%


Sinking crude prices are a tremendous blow to this oil-driven economy. The stock market is also suffering huge losses, dragged down by the country's oil giant Petrobras. Meanwhile, Brazil's real is down 35% against the dollar, since oil set a record high in July.


China
GDP: 9.74%
Inflation: 6.43%
Unemployment: 4%*
Markets: -64.92%
Gallon of gas: $3.48
Interest Rates: 6.66%


The country's GDP sinks to a 5-year low as manufacturing exports slow amid weak global demand. And mass layoffs at factories are worse than the official 4% unemployment rate suggests, since China does not track employment outside of major cities. A $586 billion government stimulus package aims to boost housing, health care and infrastructure, and includes tax breaks for struggling exporters.


Germany

GDP: 1.85%
Inflation: 2.94%
Unemployment: 7.43%
Markets: -41.12%
Gallon of gas: $8.58
Interest Rates: 3.25%


The German economy, which is Europe's biggest, slid into recession in the third quarter when its GDP contracted by 0.5%. And officials say that they don't expect to see any economic growth in 2009. Consumer confidence index is actually in negative territory, at -53.5, compared with an historical average of 27.1. The government hopes a $642 billion bailout will support the nation's banking system.


Iceland

GDP: 0.3%
Inflation: 7.93%
Unemployment: 2.2%
Markets: -45.81%
Gallon of gas: $7.54
Interest Rates: 18%


This tiny country is suffering near total economic collapse in the wake of the global crisis; in October its stock market crashed and its central bank went bankrupt. The Krona is down nearly 50% against dollar in past 6 months. Iceland receives $2.1 billion from International Monetary Fund, but says it will need $4 billion more.


India

GDP: 7.93%
Inflation: 7.93%
Unemployment: 7.8%
Markets: -51.48%
Gallon of gas: $4.95
Interest Rates: 7.5%


Consumer demand for gold, which typically soars during the Diwali wedding festival, sinks by roughly 20%, signaling trouble. The country's foreign debt expanded to 3.6% of its GDP in 2008, and in October the central bank lends $37.4 billion to financial institutions in October in an effort to boost credit.


Japan

GDP: 0.69%
Inflation: 1.57%
Unemployment: 4.05%
Markets: -42.45%
Gallon of gas: $5.78
Interest Rates: 0.3%


The sock market hits a 26-year low in October, and the government cuts interest rates for first time in more than seven years. It also unveils a $275 billion stimulus package, including loans for small and medium-sized businesses, as well as tax rebate checks to households.


Russia

GDP: 7%
Inflation: 14.03%
Unemployment: 5.9%
Markets: -65.53%
Gallon of gas: $3.93
Interest Rates: 11%


Sinking natural gas and oil prices shrink exports, and investor jitters over Russia's military takeover of Georgia crush the stock market. Russian banks are hit particularly hard by the credit crisis because they hold significantly more in foreign debt than national assets. The central bank sets up a $50 billion lending facility for financial institutions, and the finance minister indicates there is more money coming.



Saudi Arabia

GDP: 5.85
Inflation: 11.45%
Unemployment: 13%†
Markets: -50.5%
Gallon of gas: $0.45
Interest Rates: 4%


OPEC production cuts in October hit this country the hardest -- it signals that it can't afford to cut back any more. Falling oil prices are hampering the economy and holding up much-needed public construction projects. Meanwhile, the cost of living here is soaring on escalating food and housing costs.



South Africa

GDP: 3.83%
Inflation: 11.78%
Unemployment: 23.2%
Markets: -30.64%
Gallon of gas: $4.64
Interest Rates: 12%


Metals exports such as gold and platinum are hurt by falling precious metals prices, and soaring food and electricity prices are driving a steep increase in inflation. Unemployment had hit a seven-year low in March, but is rising as the economy slows.



United Kingdom

GDP: 0.99%
Inflation: 3.78%
Unemployment: 5.4%
Markets: -34.2%
Gallon of gas: $8.09
Interest Rates: 3%


Both the Prime Minister and the Treasury chief say the British economy is likely in a recession. The pound is at a 6-year low against the dollar, and retail sales are down for first time in nearly 4 years. A $63 billion bailout for the banking sector offers some relief.



United States

GDP: 1.57%
Inflation: 4.22%
Unemployment: 5.62%
Markets: -33.10%
Gallon of gas: $3.8
Interest Rates: 1%


Home prices plummet by as much as 40% in some parts of the country, and nearly one million homes have been lost to foreclosure since the mortgage crisis began in August 2007. The government is flooding the frozen financial system with nearly $3 trillion to restore liquidity, and, despite a $168 billion stimulus package that was unveiled last spring, political support for a second stimulus package is gaining momentum.