Macroeconomic Situation Essay Example | Topics and Well Written Essays - 500 words

Macroeconomic Situation - Essay Example Further, it was expected that the private consumption for the year 2010 and the year 2011 would be restrained at 2.5 percent. The rate of unemployment for the year 2010 and the year 2011 has been expected to be over 9% (United Nations, 2010). It was pointed out that with the fall in the prices of houses in the United States; there will be negative influence upon the balance sheets of the households. This would further slow down the rate of consumption and thus increase the rate of savings. The low interest rates and inefficient economic conditions have evened out the weakness in the household net value. Further, the long-term related ‘government bond yields’ have declined in the United States (OECD Economic Outlook, 2010). It has been estimated that the fiscal policy of the country has been identified by the stimulus spending. Further, the remaining $470 billion is expected to be paid out in the year 2010 and 2011 with a smooth decline of its effect upon the economy (Cor porate Executive Board, 2010). It has been assessed that the rate of the Dollar has declined by 11% against Euro that was worth $1.47. The manufacturing industry is expected to rise in the US (Bloomberg, 2011).