Every year there are happening many things in global economy that sometimes we don’t expect at all! For example, the declining price of oil and the drop of economic growth of Chine surprised everyone in 2015.
It’s said that if you observe well the facts you can predict the economic trends that are coming. According to serious observers, the top five trends that will affect economy will be these:
USA remains the leader of the global economy -In fact, if you are a citizen of USA you don’t understand that the economy of your country has the most power in the world. But if you compare the economy of USA with other countries you understand the difference. The sudden collapse of economic growth in China is an example. The most important is that other big economic powers depend on USA for their growth because USA has the largest deficit in trade.
The decline of economic growth in China will remain -Everyone remembers how fast the Chinese economy was growing by investments and many exports in wealth countries. But this changed this year and China felt the global economic crisis as well other countries and the investments translated into debt. China has a difficult job this year to transfer wealth in the households and this can’t happen in one night!
Many products will be cheap -As a result of the collapse of Chinese economy, the price of products had their worst year in 2015 by falling almost 25%. As China exports many important products like things for building, the experts expect that things will remain almost like 2015.
The economic crisis in Europe is still alive -Even thought Europe will have a small increase in economic growth and some fall of unemployment, the inequalities that created the crisis remain! Having the same currency countries with many differences like Germany and Greece is dangerous. Germany has unfair advantage in exports and countries with no productive power have high unemployment.
India is the new player in global economy -Experts are expecting a big surprise from India that will become the fastest growing economy in east with a growth rate of almost 7%.