Volvo 2007 Annual Report Download - page 14
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Please find page 14 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.GDP-growth in the US and in Europe, %Brent Oil Growth in Asia, %
Annual GDP-growth.
Source: Consensus Economics
USA
0706050403
2.62.91.61.80.8
2.22.93.13.62.5
Europe
0706050403
97.757.358.740.630.3
02
30.1
Brent oil:
(USD/barrel)
0706050403
11.4
11.110.410.110.0
8.6
9.49.07.58.5
5.65.65.25.64.7
China
India
Asia/Pacific*
Annual GDP growth
Source: Consensus Economics
* China, Hong Kong, South Korea, Taiwan, Indonesia, Malaysia, Singapore,
Thailand, Phillippines, Vietnam, Australia, New Zealand, India, Japan, Sri Lanka
Continued growth in
the world economy
Growth economies are the engines
Admittedly, world growth slowed somewhat in 2007, but nevertheless the rate of increase of the
world’s GDP was slightly more than 5%. A slowdown in the American economy was offset by more
stable growth in Europe and the contribution of rapidly growing emerging economies.
The growth economies in Asia, Eastern Europe and South America contribute signifi cantly to
the world’s strong economic trend. The BRIC countries – Brazil, Russia, India and China – account
for one-quarter of the world’s GDP, a substantial increase from 17% in 1990, according to the
OECD. North America and the EU, however, remain indisputably the largest economies,
accounting collectively for approximately 60% of the world’s GDP.
In the past 30 years, world trade has increased dramatically. Total trade in relation to the world’s
total GDP has more than doubled since 1970 – from 12% to 27%. The percentage of export of the
growth countries has doubled – from 20% to approximately 40%.
Most analysts agree that global growth will decline somewhat in the next few years, owing primarily
to tighter monetary policy in many countries and the cyclical weakening of corporate investment.
Nevertheless, the global GDP is expected to increase by around 5% in both 2008 and 2009.
Transport needs and infrastructural investment
Growth in trade creates higher requirements for the transport of goods between and within various
parts of the world, countries and regions. At the same time, social trends, such as urbanization in many
countries imply that ever-increasing numbers of people require transportation in their daily lives.
The transport requirement is refl ected in demand for transport vehicles, which have reported
growth rates of about 4% a year over a business cycle. Historically, the trend of registrations of
heavy trucks has shown wide fl uctuations in North America but been more stable in Western
Europe. The fastest growth is occurring in Eastern Europe and Asia.
Growth in the economy and in transport also clearly underscores the need for a reliably func-
tioning infrastructure. In the next few years, major investments in the road network will be carried
out in the key growth markets of China, India and Eastern Europe. But it is not only roads that are
being built – the activity is intense in other sectors as well. Construction projects include airports,
roads, railways, factories and shopping centers, as well as housing and recreational facilities.
Collectively, it implies a healthy demand for construction equipment.
In the past few years, annual global GDP growth has been on the
highest level since the 1970s.
10 A global group 2007