How the World Economy is Shaping Up? (2017 Update)

How the World Economy is Shaping Up?
How the World Economy is Shaping Up?

How the World Economy is Shaping up?

Well, it is a multi million dollar question. Isn’t it? Comprehending the world economy, and to be precise, predicting the outcome involves more than just economic analysis. The political turmoil has affected the world economies, and the impact has been felt all across. U.S. economy is in a flux in terms of Fed. Chinese economy has witness slowdown. Japan has introduce negative interest rates to steer the economy forward by means of ‘spend more’ policy. Other countries are aspiring to be economic giants of the near future. Brazil, South Africa and India fall under the mentioned category. So, what is this all about, anyway.


GDP growth rates reported for the latest financial year cut a sorry figure. Overall, there has been a downward spiral in terms of the growth rates. Thus, the international economic and financial environment has had to suffer. Furthermore, trade restrictions also have to do with all of this. In addition, many a times it has been the national economic policies that have served as a precursor to all of that. A faulty economic policy can cause damage not only to the national endeavors, but in one way or the other, it affects the global trade as well.

A Quest to Enjoy Maximum Share

It seems as if it’s all about the economic power and might. Chinese have invested heavily in the Asia Pacific region to strengthen their trade initiative known as the One Belt One Road (OBOR). It, if implemented successfully, will provide the Chinese markets an easy access to the markets in the region, and further towards European markets. Also, to get a fair hold of the sea lanes of communication and to use it for trade purposes, a massive investment in Pakistan. This is in view of getting access to the Arabian Sea port of Gwadar, has been made. After all, it all boils down to who controls what.

Chinese economy has taken massive strides in the recent years. There’s a reason they’re the second biggest economy after the United States. Chinese, predominantly, has been an export oriented market. With the recent decline in international exports, Chinese economy has also taken a toll. Countries like the United States are going towards achieving trade parity with China. Although, however, trade between the United States and China currently favors the latter. This is because China exports more to the U.S. than it actually imports. Thereby, giving a trade advantage in bilateral trade. In the contemporary world, it’s a race to reach the finish line first. But, hold on, is there a finish line in place, anyway?


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