Essay on Latest factors affecting the world economy
Free 526 words Essay on Latest factors affecting the world economy for school and college students.
This year 2016, is the most challenging year ever observed in the history of the global economy.
As per the reports submitted by the IMF, global GDP growth rate this year is approx. 3.5% which is quite less the GDP growth rate of the world pre-recession. The GDP growth rate at that time was 4.5% on an average and the current rates are still much lower than that. Still, this rate is better than what the world experienced over the last five years.
Only the countries, the US and the UK have the self-capability to recover from the crisis but their state is still weaker than what was seen during the post-recession time.
Especially in the Eurozone, people are calling out for the expansionary policies in order to take steps towards the growth of the countries.
It has been predicted that both the US and the European countries share the same level of investments, productivity growth, and only the export sector is shining as a ray of hope, contributing greatly to the recovery of these countries.
As per the latest reports, GDP growth rate is slower in Asian countriesprovided world trade is growing at a slower rate. This recovery scenario hasn’t brought about any positive upturns in the business sector as well.
Let us understand the role of Political Populism here.
This year 2016, is the year of political populism. Economically speaking, this year is a year of low economic activities and comparatively low productivity was seen as compared to the previous years.
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This means that people depending on real wages would be the most sufferers and consumers market will face a disappointing turn. In this crisis situation, people like
- Alexis Tsipras,
- Bernie Sanders,
- Donald Trump,
- Jeremy Corbyn,
- Marine Le Pen,
- Nigel Farage,
- Pablo Iglesias Turrión and much more are likely to enjoy a luxurious lifestyle despite weak economic activities.
A Large number of factors contribute to affecting the world economy in one or the other way.
- More people are insecure about their jobs affected by the globalization, digitalization and many other automatic systems that are replacing humans with the machine.
- A lot of new opportunities are coming ahead where the short-term contractors would hire employees on a short-term basis. Such class of people, whose job insecurity rate is very high, is called “Uber” class of people.
- Education, knowledge, skills have no limits these days. All of these categories have taken a big leap.
- Labor market ruled by the Unionisation is again a kind of retreat where the whole of the burden rests on the shoulders of the union leader.
Above factors clearly, states that the political populism has really affected the way leaders used to deal with the situations and take up long-term challenges for the benefit of an organization.
This year is a challenging year for the global economy. India’s growth is on a positive note, countries like the US and much more, are in a recovery mode. Things like political populism are likely to affect world economy to a greater extent.