Is Global Economy Expected to Enter in a New Cycle of Recession? A Preview
Certainly, people have to face another recession to run into troubles and hardships to take care of their family members. The comfortable zone in job market in US seems to decline. It creates lacunae for unemployed youths to build up careers in the long run. The global economy struggles without an easy solution for them to recover from the dirty quagmire of bankruptcy and crisis. The aftermath effect of this downtime seems to imprecise on Central America, Middle East, South East Asia, Europe and US. In spite of the biggest economy of US with speedy improvement to do prompt patchwork, the situation sounds cumbersome. Same way, China is not as bad as critics claim. Chinese government tries to concentrate on the overall development of the housing market. New economic rebalancing theory of Beijing lifts up the nation from deadlock. Europe, South East Asia and Central America need more aids to fertilize the soil to establish powerful industries for the sake of rapid business expansion, prosperity and growth. Though IMF anticipates the better economic restoration with prominent 3.9 % growth rate between 2018 and 2019, it will not be as smooth as others estimate. Tough times are imminent to harass US citizens to experience financial deficits. Donald Trump will have to spend another nightmarish event due to his defective plan to control recession.
•US Economy Facing Risks
Global trade war is not unknown to economists who give a preview about the possibility of crunch in the share market with the rise of China in the world. US will have to do rework innovating its marketing strategy to boost up import-export business. The enmity between Donald Trump and Xi snowballs in opening another chapter of Cold War. Unifier has not dithered to put heavy cross border taxes on the products exported by China. His drastic decision has had burnt the heart of Xi who has responded harshly. He warned that China would not go back in humiliation. Around $36 billion worth US products will face higher tariffs in China. So this tit-for-tat strategy will destroy two big bosses. In between, Australia, and few OPEC members must be benefitted. South Sea issue, the intervention of US to stop Beijing to do military escalation on Sprightly Island to make the small cystic pouch painful with long lasting impact must be assessed based on facts. China has reset its Economic Exclusive Zone plan prohibiting neighboring countries to cross the South Sea without permission from. Beijing. The trade and commerce will be affected.
Truly speaking, the growth rate in the global economic infrastructure has gone down by 2.5 percent comparing to the feedback way back to 2008 during the tough economic downturn. In this regard, Stephen Roach, ex-chairman of Morgan Stanley Asia has confirmed the shortage of competency and resilience of the global economy. It is dangerously passing through a rough and tough period. The shocking condition of the global economy will bring miseries to many under developing countries in Africa, South East Asia and Middle East. Brazil and Russia don’t have hygienic ambience to thrive due to the incessant stormy recession whereas Japan, Argentina and South Africa are forced to backtrack.
•Economic Struggle in Europe –No Easy Solution
Europe is groping for the solution to overtake the financial downtime. The slowdown session in the UK looms large after Brexit. Greece has been looted by mafia don and swindlers who have thrown the national economy deep in the ocean of debt. Money laundering and fraudulence have destructed the economy of Greece severely.
•Latin and Central America –Uncomfortable Zone
Latin America is suffering from abrupt crisis after spending bright days of prosperity from 2004 to 2013. The progression took place faster in Latin America before 2014. Major Asian countries like to import products from countries in Latin America. In return, the vast area in Latin America was financially developed with strong platform to expand business. Lot of revenues stimulated the economy to remove the risks of unemployment and poverty. However, with the steadfast improvement of Chinese economy, Latin Americans start performing badly. They have hardcore rival to compete in electronic goods, automobile, aviation and other sectors. Stat reports have revealed the truth about the deterioration of the economy of Latin America between 2010 and 2015. Only 40 percent growth has been registered during this period. Government needs to be more constructive to inhibit the increase in the number of unemployed youngsters and street boys. Recurrent snapshots of scandals, money laundering and scam have jolted Latin America. Dilma Rousseff in Brazil has used her tricksters to push the national economy to the verge of destruction making big counterfoil. She has looted mercilessly to cripple the government. Nieto in Mexico and Humala in Peru follow the suit. Michelle Bachelet, Juan Orlando and Molina are rascals to decelerate the growth of their nations. They have tortured people. They have had created a human exploiting machine to suck up the blood of innocent civilians.
•Middle East –Geo-political Issues and Insurgency Hamper Growth
Air strikes and strategic bombardment ripped through the cities in ME. Gulf war, repeated attacks of terrorists and hostility have kept people alert without smooth sleep at night. Their buildings seem to topple due to the caustic vibration coming from battle field. Gun powder, missiles and grenade are not ingredients to construct the foundation of development of the economy in ME. As per the reports of World Economic Outlook, North Africa, Afghanistan and Pakistan in Asia have experienced sudden nosedive comparing to 5 percent growth rate in 2016. This sluggishness and slowdown must not be pampered. OPEC community members have declared that they will not sell oil at low rates even the pressure from western countries. Stored oil will not be spent in spite of rainy days they are facing. Saudi Arab didn’t convince citizens as the growth rate fell to 0.3 percent in 2017. The diplomatic tension has done major damage to Qatar. This country is involved with showdown with its neighboring countries. Yemen, Syrian Arab Republic and Libya have to prevent the loss strategically. Terrorists explode bombs to burn liquid gold. They destruct oil reservoirs and downstream projects to paralyze the economic resilience of these countries. Geopolitical insurgency and tension impact the regional economies of these nations in ME.
•South East Asia –Snapshot Is Pitiable
South East Asia is colonized vastly. It is divergent to give shelter to people coming from different religious backgrounds. Ethnic clash and racism slow down the process of mobility in the expansion of IT industry and heavy engineering workshops in Vietnam. Technology and manpower are not utilized properly due to lack of training facilities, qualitative education and talented tech gurus to guide employees. Most of people in South East Asia are busy of performing their religious rites and rituals. They depend on black magic and superstition. The new movement for reconstruction economy is not seen to inspire the middle class of the society. There should be innovation in the technology, education and economic growth.
Generation Z Plus members must use new mechanisms to overpower deeper recession which seems to be unending since 1930. People have to understand the cause and effect of the depression in global economy. The political disturbance, insurgency, violence and trade war in its fashionable term can’t be nutrients to rejuvenate the global economy. China is going fast. What about Argentina, Brazil and Peru? Why is Britain unable to improve economy after Brexit? US have to increase the volume of products exporting to have revenues from other nations. If all is well in the long run, the condition of global economic infrastructure will be standardized to begin a new era of capitalism.