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10 Economic Shocks to Look Out For in 2017
Article

10 Economic Shocks to Look Out For in 2017


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Editorial Rating

8

Qualities

  • Analytical
  • Overview

Recommendation

Economists are divided over what the Trump administration will bring in 2017. Some fear that US president Donald Trump will start a trade war or worse, pulling the entire world economy into an economic downward spiral. Others applaud Trump’s business-friendly economic agenda and expect a boost to the US economy in the coming years. Although the human factor in the equation remains unpredictable, award-winning economic forecaster Nariman Behravesh argues that the economic fundamentals for 2017 are surprisingly sound. getAbstract recommends Behravesh’s concise 10-point memorandum on the strengths and risks of the global economy in 2017 to investors and business strategists.

Take-Aways

  • The global economy in 2017 stands on solid ground due to a well-supplied oil market, sound international monetary conditions and the lack of “asset bubbles.”
  • Expected tax cuts and infrastructure spending, along with increased investment in the energy sector, will drive growth of 2.4% for the US economy.
  • A strong US dollar will boost exports in Japan and Europe. However, the strong dollar and rising US interest rates may accelerate capital flight in emerging markets and increase the dollar-denominated debt burden of developing countries.

About the Author

Nariman Behravesh is the chief economist at financial services firm IHS Markit. Bloomberg ranked him among its top 10 economists in 2009 and 2010.