In the current economic climate there seems to be little to celebrate as Brexit continues to slowly unfold, Trump’s administration avoids serious questions, Greece is on the verge of another crisis and constant terrorist attacks. It’s a lot to take in and difficult to be positive in such a climate.
Do not despair though: there is positive news for some of the world’s economies.
Recently it has been apparent that many countries have had economic growth, this has been due to many countries’ economic recoveries around the world. According to Bloomberg’s recent analysis there will be an improvement in the economy of 62 countries and the deterioration of 33 from 2016 to 2017. Those countries with the most significant and largest growth rate change are Argentina, Brazil, Russia and South Africa. Now you might realise that some of these countries current GDP growth rate are currently negative which is forecasted to grow by the end of the year to more desirable figures.
Why are these countries forecasted to grow? Brazil for example has started to recover from their worst recession for a century and an impeached president. Brazil recently experienced a commodity recovery in the private sector to boost the country’s economy. Argentina has also implemented similar reforms in order to boost their economy. Other countries such as Nigeria’s and Russia’s economies will grow due to the increase in oil prices which have remained at an all-time low but are now picking up die to OPECs cuts on production costs, although this might be short lived due to the U.S increasing their drilling for oil which means the price of oil will go back down to a low level due to the increase in supply of U.S oil.
Just as there is positive growth there is also negative growth in countries such as Iceland and Romania due to the unstable government policies and discontent of the people and in Spain due to high unemployment. It is of course due to a lot of other factors as well that these countries will not experience economic growth along the year, but it must be added that it also is a forecast and even more countries can still recover and boost their economies by moving contractionary to expansionary policies.
As we face these unsettling times it is key to keep track of the latest news, the GDP and politics of the world as anything can happen in the financial markets. But this is very good news as countries such as Brazil are finally forecasted to an economic growth rather than depression. I think we ought to celebrate the little improvements that we do see and keep up our spirits to keep them coming!