External and Internal Shocks Serious Setbacks to Economic Growth

Synchronously, the developing economies such as some Asian and South American regions which exported their experienced workers to the overseas market can also reduce the unemployment pressure that governments must face in long-term period. On the other hand, international remittances are beneficial for both migrant-sending and migrant-receiving countries. Statistics discovered that the international remittances transmitted to the homeland of 35 to 40 million migrant workers are currently estimated to be about US $66 billion per year, and represent the second largest international monetary trade flow, exceeded only by petrol (Sasikumar 2001). For the countries which exported labour to rich countries, they would gain enormous exchange funds from international remittances and regard the money as foreign investment to facilitate their economic development. By contrary, for these migrant-receiving countries, the outflow of vast domestic currency would take away some financial threats such as malignant inflation to a great extend. Nay, the popularization of one country's currency could also accelerate its economic fluidity and strengthen its economic influence to the other countries.

One of the negative thing about remittance is that a numerous immigrants are disappointed not just with the poor reliability quality and rate of the present casual settlement system, additionally with the immense expenses they should pay. They may pay 6 -15 percent of the dispatched sum for the exchange. On top of that, they pay another 3-5 percent

2.5 percent in 2017. From 2018 through 2020, the economy would grow at an average annual rate of 2.0 percent, CBO projects. Consumer spending will be the largest single component of that growth, as it has been in the past years. However,the pickup in the growth of output from 2015 to 2016 and 2017 is likely to stem largely from faster grow with-thin investments in the business capital and housing. In the coming years, inflation is suppose to rise and as well as lowered unemployment rate will be slowly decreasing.

What I have learned in this chapter about remittances and how they work, is that they don’t make a lot of money per months and they don’t have a good quality of life. Remittances worker do not have a hand to help them. Remittances workers don’t have an easy life to support themselves in an economy way. Also, remittances life can give you a lot of trouble, because your undocumented in the country. Remittances worker they don’t give benefit the country’s economy. I will give you the most negative effects of them.

We know some negatives aspect or effects from the remittance life for example,How remittance dollars play an important and growing role in the economies of developing nations. It is a difficult to estimate how many remittance dollars move from our country to another each year and sometimes much of the money moves unofficial means not through bank because how

The international Monetary Fund describes remittances as international transfers of funds sent by migrant workers from the country where they are migrated to work to people who are typically their family members in their home country. Remittances represent household income from foreign economies coming from temporary or permanent movement of people to those foreign economies. Global remittances are primarily derived from two parts in the balance of payment framework which are income earned by workers in economies where they are migrated and the other part is the transfer from occupants of one economy to occupant of another

The economic growth rate is sluggish at best with the year 2005 having a growth rate of 5.25 percent and 2006 having a slightly lower growth rate than the prior year. Many of these setbacks are due to the

Keep an eye on capital spending going forward and until we see it rise and demand for durable goods pick up we can expect to continue with this moderate to slow economy for a while longer.

Trade contribution to GDP has been disappointing, but government spending at 20.4BN in the June quarter encouraged JP Morgan to raise GDP forecast to 0.6%, leaving annual GDP growth at a steady 3.4%.

The current rate of GDP growth, according to the Bureau of Economic Analysis, is 2.7% (for Q3), and it was 1.3% in Q2 of this year. This rate reflects relatively slow growth, with challenges remaining in the domestic market and with sluggishness in Europe suppressing exports to that region. The rate of GDP growth is predicted to slow to a decline of 0.5% between Q4 2012 and Q4 2013, the US re-entering recession, according to the Congressional Budget Office's projections. These projections are based on the provisions of the Budget Control Act being enacted, though any observers are doubtful that this will occur.

Remittance gets momentum in recent time in Bangladesh and is the second largest sector of foreign exchange earnings after the garments sector. If cost of imported raw materials is deducted from the foreign exchange earning of the garments sector, remittance becomes the single largest sector of foreign exchange earnings. Remittance earning is increasing day by day but at a lower rate than the increase in emigration from Bangladesh due to the increasing share of unskilled or semi-skilled labors than the professionals in international migration. The share of remittance in GNI (Gross National Income) is increasing day by day. It affects almost all the macro-economic indicators of a country positively. Though there are also negative sides of remittance earning e.g. brain drain, its overall contribution to Bangladesh economy is very much effective. Appropriate and timely government policies and initiatives can boost up the amount of remittance and can rectify the problems related to it. Remittance has created a new dimension in the economic development of Bangladesh. We have to properly unlock the potentialities of remittances and utilize it

Job growth further slowing. After all, since employment is a lagging indicator, it can take a few quarters to respond to changes in economic activity.

The graph of the CPI (inflation) and the unemployment rate have an inverse relationship, the fact that both keep their inverse relationship throughout the next year might prove that the analyst prediction is correct. As it says on the FinancialNerd website a extremely low unemployment rate would cause inflation to rise since the supply and demand ratio will shift and prices will rise. I expect the country’s GDP to be higher due to the predicted unemployment level. As it says on wisegeek when the unemployment level decreases, the GDP increases since the consumer confidence increases.

Employment: If a country experiences persistent trade deficits, there are negative consequences that affect the economic stability and growth. When the demands for imported goods/products are higher than the exports, jobs in the domestic sphere will be lost while those on the foreign countries will gain. On the contrary, unemployment levels can persist at low level in countries experiencing trade deficit as compared to those with

Remittances typically refer to transfers of money by foreign workers to their home countries. Remittances are not a new phenomenon in the world, being a normal associated to migration which has always been a part of human history. Remittances are playing an important role in the economies of many developing and low income countries. Pakistan is a labour abundant country; hence, as neoclassical theory shows, if workers are unable to find jobs and/or wages to satisfy their needs, they will look elsewhere. Pakistan’s history provides us with a new trend of emigration nearly each decade. Remittance is an important source of foreign exchange earnings for Pakistan since 1970. During the past four decade Pakistan received