According to the publication, Global Issues, the global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.

On the one hand, many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world. The problem could have been avoided, if ideologues supporting the current economic models weren’t so vocal, influential and inconsiderate of others’ viewpoints and concerns.
Following a period of economic boom, a financial bubble—global in scope—has now burst.
A collapse of the US sub-prime mortgage market and the reversal of the housing boom in other industrialised economies have had a ripple effect around the world. Furthermore, other weaknesses in the global financial system have surfaced. Some financial products and instruments have become so complex and twisted, that as things start to unravel, trust in the whole system started to fail.

Following a period of economic boom, a financial bubble—global in scope—has now burst.
A collapse of the US sub-prime mortgage market and the reversal of the housing boom in other industrialised economies have had a ripple effect around the world. Furthermore, other weaknesses in the global financial system have surfaced. Some financial products and instruments have become so complex and twisted, that as things start to unravel, trust in the whole system started to fail.
The subprime crisis came about in large part because of financial instruments such as securitisation where banks would pool their various loans into sellable assets, thus off-loading risky loans onto others. (For banks, millions can be made in money-earning loans, but they are tied up for decades. So they were turned into securities. The security buyer gets regular payments from all those mortgages; the banker off loads the risk. Securitisation was seen as perhaps the greatest financial innovation in the 20th century.)
As the BBC’s former economic editor and presenter, Evan Davies noted in a documentary called, The City Uncovered with Evan Davis: Banks and How to Break Them (January 14, 2008), rating agencies were paid to rate these products (risking a conflict of interest) and invariably got good ratings, encouraging people to take them up.
“… the fallout from the collapse of the US mortgage market and the reversal of the housing boom in various important countries has[sic] turned out to be more profound and persistent than expected in 2007 and beginning of 2008. As more and more evidence is gathered and as the lag effects are showing up we are seeing more and more countries around the world being affected by this rather profound and persistent negative effects from the reversal of housing booms in various countries.” ( Kanaga Raja, Economic Outlook Gloomy, Risks to South, say UNCTAD, Third World Network, September 4, 2008)
How well have our economy performed in this extremely difficult external economic situation?
Much to the credit of the astute and prudent management of our economy during this period of global financial upheaval, it is among the few in this part of the world which has shown consistent, positive growth, averaging just about 5% annually over the last five years
This is a remarkable achievement when one takes into consideration all the various factors which impact on our national economy.
This year we are headed again for another positive and impressive growth as Finance Minister Dr Ashni Singh has announced a 3.9% growth for the first half of the year.
Singh said, underlying this growth, is very strong performance in a number of important sectors, among them, gold continued to perform extremely well, with a growth of 26.8 percent.
He said that was accomplished notwithstanding constant fluctuations in gold prices as the sector has invested significantly in productive capacity.
“Responding to the favourable policy environment that we have created the sector, obviously, persevered and continued to produce and did extremely well,” Singh remarked.
He said another outstanding producer is the rice sector, which grew by 25.1 percent, a showing he described as “extremely commendable”.
The minister remarked that the Government has invested significantly in this sector, as it relates to infrastructure, developing new lands, upgrading and improving drainage and irrigation infrastructure, developing research services, introducing new varieties and negotiating strong external markets.
Moreover, he said that private sector rice farmers and millers have responded by investing in their own productive capacity, expanding the acreage under cultivation, their equipment fleets and upgrading their mills.
The minister revealed that there was also broad-based growth in a number of other sectors, among them construction by 6.6 percent and the financial and insurance by 9.1 percent.
However, our economic performance would have been even better if the sugar industry was performing at optimum levels. Unfortunately, it has been bedevilled by a myriad of problems beginning with the drastic price cuts by the closure to the sugar protocol by the EU.  It would be hoped that these problems and challenges being faced by the industry would be ironed out in the near future and production levels would be restored to that of earlier years.
Nevertheless, those who are entrusted with the management of our economy must be commended for steering and navigating our economy safely and soundly through very troubled waters.