The world economy over the past few years has seen various ups and downs, financial crises, recessions, and major turnovers after wars and turbulent disturbances in Africa and the Middle East. In spite of all the global economic imbalances, experts’ view 2019 and the coming years as eras of stronger growth and trade evolution combined with both economic and political risks.
With that said, find out some of the predictions that researchers have made for the Global Economy by 2025 keeping in view the current market trends.
A Likelihood of a Global Trade War
In lieu of the current tensions between the US and its trading partners China, a global trade war is more likely to happen in the coming years. This might result in increased tariffs and taxes between the two nations, while also some trade restrictions at both ends. Although the imposed fines and restraints have already escalated tensions, experts predict this might go on until the next five years or so.
Higher Tariffs may slow down Global Economic Growth
Because of the retaliating tariffs between many nations, a further increase in inflation rates is expected in the coming years. Higher interest rates and the onslaught of a tariff war is likely to hinder the international trade and drag down the global economy. It might be too early to predict a global recession, but a slow downfall in the US’s economy is probable.
A massive boost in the Chinese Economy
According to what the current situation is, the Chinese economy is set to move in a very progressive and healthy direction in the next five years. With China emerging as the world’s largest population, their growing economy and setback technology and automobile brands are giving a strong rival competition to the European competitors. This, however, will not only positively influence the Asian economy but also the global economy overall by bringing more trade and revenue prospects in China and its neighbour nations.
Brexit and the Rising Eurozone Crisis
After the referendum held in 2016, Brexit is finally happening. Britain is due to leave the European Union on 29th March 2019 according to the voting held three years ago. Following this decision, there is a strong prospect for the UK to move towards a more liberal and independent nation. However, Brexit may halt Britain’s foreign investments, ties with other European nations, its currency and economy to a certain point. With Brexit looming over and the Eurozone crisis where almost a number of European countries are in debt, the global economy might get affected too.
A hard take on Global Warming
Climate Change is happening and we are already seeing signs. In the upcoming years, we will see the UN spending more and more on protecting the environment and taking preventing measures from any natural disasters. There will be a strong effect on the global economy in case if there are any massive disasters, flooding or climate change aftermaths.