It looks like the recovery rate of global economy has picked
up its speed for past six months. Rapid economic growth is strong in different
regions of the world especially in Asia, Europe and America with the same
growth also observed in emerging markets such as Brazil and Europe. The rate is
the highest in manufacturing sector of the economy. This global economic
revival comes mainly from $300 billion spending of Chinese government in its
second strongest economy in the world and adoption of expansionary policies. These measures recused Chinese currency from
rapid deflation and increased prices once again. However, there are doubts
surrounding this optimistic global economic outlook. Debt recoveries of numerous
nations including Europe and China are excruciatingly slow and banks are reluctant to write off old bad loans
to make way for new loans. Regardless of these potential signs of drawback, it
is always a welcoming sign to experience even a glimpse of positive economic
growth.
http://www.economist.com/news/briefing/21718866-despite-anxieties-green-shoots-global-recovery-are-real-world-economy-picking-up
3 comments:
It is great to see that the world economy has picked up in the last 6 months and that there is economic growth globally however, it will be interesting to see how this can be sustained. With the rise of protectionism of certain important areas, Brexit and the renegotiation of trade deals in the coming months the global economy could take a hit. Even with all of these changes to the economic-politial landscape it is nice to see some positive economic progress.
It is a good news that the global economy is recovering rapidly. Few days ago, the Federal Reserve increased its benchmark interest rate a quarter point amid rising confidence that the economy is poised for more robust growth. However, there are still a lot of uncertainties. The President Trump’s movements in the future may have significant influence on the global economy in the future.
It is good that the global economy is doing well, however, I am concerned about the US and its continual record-breaking stock prices. With the DOW getting past the 20,000 marker it almost seems like we might be due for a bubble popping in some market within the US economy. I would argue that this could have ripple effects into the global economy much like the housing and loan crisis and the eventual "Great Recession."
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