At the edge of the abyss .. Factors suggest the outbreak of a serious economic crisis



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A report from the site "Kevin Spekker" A specialist in economic affairs, that there are 6 factors "Help" Provides a fertile environment for the epidemic economic crisis Great:

Incomplete recovery

Experts believe that global economies have not yet recovered from the last financial crisis between 2007 and 2008, making them "Fragile" and unable to tolerate new problems.

In this context, a recent report indicates To the International Monetary FundThat economic reforms undertaken by states after the crisis are incomplete and insufficient to protect the global financial system from any future collapse.

Crises in the euro zone

In front of Eurozone A number of problems affecting their economic and financial situation, the main one being the question of "The bricast", Where the details of future relations between the EU and Britain are still unresolved.

The European Union does not want Britain to leave the country randomly because of the high economic tax, but in return, it does not prefer to abide by the London conditions so as not to tempt others to do so. likewise.

If European countries no longer make efforts to implement structural reforms conducive to growth, this would widen the gap between their countries, so that the breakup of the Union in would be the inevitable result.

The outbreak of a trade war

Not shown Sino-US trade conflict A good sign for the global economy because the International Monetary Fund has pointed out that the economic war between Washington and Beijing would reduce international growth.

Pressures could also push US President Donald Trump to take further punitive action against Beijing, threatening a further slowdown in the global economy.

Debt issue

In the years following the recent economic meltdown, many countries took on heavy debts, including 82.6% of UK GDP and the International Monetary Fund (IMF), which revealed that global debt reached $ 184 trillion .

As interest rates are kept low, borrowing is cheap, which risks deepening the economic downturn if these conditions persist along with the rise in inflation.

China's economic slowdown

Over the past 19 years, China has experienced strong economic growth and export demand from countries such as Germany and Australia has increased. Any reduction in demand will therefore have negative repercussions, especially since these exports represent one fifth of the world's commercial activity.

There are signs of slowdown in the Chinese economy. Beijing has reduced its target GDP growth rate in 2019 to between 6 and 6.5 percent, and three-quarters of China's provinces have reduced their annual growth targets.

The problem of populism

The political landscape corresponds to the world economic situation: in recent years, a number of popular leaders have gained leadership positions in response to some of the social problems raised by the recent economic crisis.

With the protectionism of the population at a time when the rigidity of the global economic system relies on free trade and cooperation of economies, the prospects for global growth look bleak and the opportunities for improvement virtually nonexistent.

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According to a report published on the economic site "Queen Spekker", "there are six factors" that "help" create a fertile environment for the outbreak of a major economic crisis:

Incomplete recovery

Experts say global economies have not recovered from the last financial crisis from 2007 to 2008, making them "fragile" and unable to cope with new problems.

In this context, a recent report by the International Monetary Fund that economic reforms undertaken by countries after the crisis is incomplete and insufficient to guarantee the global financial system of any future collapse.

Crises in the euro zone

The euro area is facing a number of problems affecting its economic and financial situation, foremost among which is the issue of the "BRICEST", where details of future relations between the EU and Britain are not still not settled.

The European Union does not want Britain to leave the country randomly because of the high economic tax, but in return, it does not prefer to abide by the London conditions so as not to tempt others to do so. likewise.

If European countries no longer make efforts to implement structural reforms conducive to growth, this would widen the gap between their countries, so that the breakup of the Union in would be the inevitable result.

The outbreak of a trade war

The Sino-US trade dispute is not a good sign for the global economy. The International Monetary Fund (IMF) said the economic war between Washington and Beijing would hold back international growth.

Pressures could also push US President Donald Trump to take further punitive action against Beijing, threatening a further slowdown in the global economy.

Debt issue

In the years following the recent economic meltdown, many countries took on heavy debts, including 82.6% of UK GDP and the International Monetary Fund (IMF), which revealed that global debt reached $ 184 trillion .

As interest rates are kept low, borrowing is cheap, which risks deepening the economic downturn if these conditions persist along with the rise in inflation.

China's economic slowdown

Over the past 19 years, China has experienced strong economic growth and export demand from countries such as Germany and Australia has increased. Any reduction in demand will therefore have negative repercussions, especially since these exports represent one fifth of the world's commercial activity.

There are signs of slowdown in the Chinese economy. Beijing has reduced its target GDP growth rate in 2019 to between 6 and 6.5 percent, and three-quarters of China's provinces have reduced their annual growth targets.

The problem of populism

The political landscape corresponds to the world economic situation: in recent years, a number of popular leaders have gained leadership positions in response to some of the social problems raised by the recent economic crisis.

With the protectionism of the population at a time when the rigidity of the global economic system relies on free trade and cooperation of economies, the prospects for global growth look bleak and the opportunities for improvement virtually nonexistent.

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