Is the global economy picking up?
The global economy has been volatile since the recession of 2007-2009, with slow economic growth and increasing unemployment rates in some markets. Despite this, increased demand in regions has led to increased exports, which have contributed towards favourable trading across the world.
Is the global economy picking up?
Global demand remains strong
What we do know about global demand is that it has been increasing. A large factor in this trend has been considerable growth the Asian markets as well as in other emerging markets.
Chinese manufacturing activity has increased
As the demand for technology products grows, Chinese manufacturers have had their hands full. As a result, the manufacturing sector has experienced an upswing and is increasing solidly.
Britain’s economy might be picking up speed after a slow first half of 2017
There is no doubt that Brexit has had a major effect on Britain’s economy, but the country is expected to make a slow recovery.
Ratings agency Moody’s Investors Service raised growth forecasts for China, South Korea and Japan.
China has grown to become the second biggest economy in the world and its economic growth is expected to surge, along with India’s and other Asian markets, such as South Korea.
The International Monetary Fund (IMF) raised its forecast for global growth to 3.7 percent in 2018
The global economy has made a good recovery from the slump of the aftermath of the recession of 2007-2009 as well as the debt crisis in Europe. This has meant that three quarters of the world is enjoying an upswing. World trade is expected to grow by 4.2 percent.
Factors that have underpinned an improved global outlook include:
- Improved investment
- Improved industrial production
- Improved consumer and business confidence
Investment growth has cooled recently and a further slowdown is expected
While commodity-rich countries may be exporting more, investment is expected to slow down.
Factors that have been a drag on the world’s wealthiest countries are an aging population and slow productivity growth.