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Showing posts with the label economy

Is China's population shrinking.

 For the first time in six decades, China's population is shrinking and it is predicted it could create a demographic crisis. That's because China's population isn't just shrinking, it's also aging. The more concerning problem is that majority of Chinese couples are not considering having more than one child. Last week, officials announced that 2022 marked the first drop in total population, since the famine of the Great Leap Forward. China's demographic trajectory is far from usual. It is following in the path set by the rest of East Asia. China is predicted to lose nearly 50% of its population by 2100. This  population decline can be traced back to the restrictive family-planning policies launched in the 1970 and an impressive economic boom fueled by China's huge labor force. China's modernization brought rapid urbanization rising income levels, and better education to large parts of the country. Combined, these policies and growth gave China one of t...

The collapse of Silicon Valley Bank and its impact.

  Why did the Silicon Valley Bank collapse? The Silicon Valley Bank (SVB)  which is best known for its financial services and solutions to the technology and innovation sector. It was founded in 1988 in Santa Clara, California. It provides a wide range of financial services, which includes commercial bank, investment bank and private banking. It offers venture capital financing, asset management, foreign exchange and treasury management. Throughout the years it had established itself as a leading bank for investment in the technology and innovation sector which is known for its high risk. Despite its success , SVB has faced its share of challenges over the years, which includes the impact of economic slowdown and changing market conditions. Also the stocks in the technology sector is facing downturn over the past few years and the hiking of interest rates by the US federal reserve to combat inflation. The reason of the collapse is that as the venture capital firms were drying ...

Venezuela's economy explained.

 Why Venezuela has the strangest economy in the world? Venezuela is a country in South America and its capital is Caracas. It is officially known as the Bolivarian Republic of Venezuela. Venezuela is  colonized by Spain in 1522. It was the first Spanish-American to  declare independence from Spain in 1811. It in the modern world it has the world's largest proven oil reserves but regardless of that it has the highest inflation in the world, struggling with shortage of food, electricity, and other essential goods. For this we need to go back on 31 July 1914 when oil was discovered in Venezuela for the first time. At that time it was ruled by Juan Vincente Gomez who ruled over from 1908 to 1935 as a dictator. In the 1920s and 1930s Venezuela begin to industrialize with the development of its oil industry becoming a major contributor in the development. In the early 1900 the economy of Venezuela is mainly a agriculture based. Gomez allowed foreign companies to explore, ...