Analysts are reporting that the overall state of the global economy has been terrific and is prevalently much better than of last year’s performance, although a possible conundrum is also forecasted due to the mass geopolitical tensions recently. A senior Australian banker pointed out the major debacle that the global economy is currently encountering.
According to the assistant governor of the Reserve Bank of Australia, Luci Ellis, “The turning point (for economic growth) was around the end of last year. While it doesn’t seem to have picked up further recently, neither is this expansion a flash in the pan,”
Global Economic Performance
Looking at the global economic status, Ellis mentioned that the current geopolitical risks in some parts of Asia were “low-probability, high impact events” and is an impending danger to the overall forecasts on the current global growth. On the other hand, the Eurozone continues to ease and cool-down from prior problems and remained on the ground despite previous existential crisis for the European Union, although Ellis mentioned that this may play a role with Brexit.
An impending threat for the Eurozone comes from the anti-euro sentiment that is spewing in countries such as Italy, Greece, and other European countries due to their response to the abrupt decision of Britain to leave the European Union last year.
More on the Global Economy
Looking at a whole, the most pressing geopolitical problem blooms from Asia, most specifically in the North Korea. The massive ‘nuclear exercise’ or the launching of multiple nuclear missiles on the shore of different countries has really been the boiling point of the most geopolitical terrors, most especially with the U.S. economy.
Ellis’ Final Notes
The Australian banker final notes revolve around the global expansion and the policy needed to keep inflation low and at bay despite the pick-up in economic growth and ending with a positive note, believing that the overall global wage will grow eventually and price pressure to rise as well.
Further Events to Look Forward Too
One thing investors, economist, and analysts can look forward too is the meeting of the central bank governors and finance ministers hailing from 180 different countries for the annual International Monetary Fund and the World Bank. We can all expect a major discussion on the confrontation of the global economic order under increasing conundrums.
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