The global economy is in flux. Each day brings new headlines and data that can be overwhelming for even the most seasoned professionals. This blog post will look at some of the most shocking stats about the global economy in April. From debt to trade to unemployment, read on to learn more about how we got here and what lies ahead.
The Global Economy is in a Mess
The global economy is in a mess. The World Bank has just released its latest Economist Intelligence Unit (EIU) Global Economic Prospects report, and it’s not good. In fact, according to the EIU 29k Jan. aprilsatterreuters, “global growth prospects have weakened markedly since the end of 2016.”
The main reason for this slowdown is China. According to the EIU, “China’s economic growth appears to be slowing more sharply than previously thought and imports are starting to weigh on its exports.” This has caused global trade volumes to fall for three consecutive months.
In addition, the US-China trade war is causing other countries to retaliate against American products. This has led to a sharp drop in exports from other advanced economies, such as Canada and Germany.
All of these events are bad news for the global economy. But they’re not the only problems that we face. Other threats could derail our progress: climate change, pandemics, the Eurozone crisis… And that’s just the beginning!
So what can we do? We need to continue to invest in our economies and create new jobs. We need to ensure that we’re using clean energy sources and investing in infrastructure to improve efficiency and competitiveness across industries. And we need to continue our fight against climate change so that we can prevent further negative consequences from happening.
The Economic Outlook for the Year Ahead
The global economy is facing several challenges in 2019. Here are the most shocking stats about the global economy in April:
1. The world’s two biggest economies, China and the U.S., are slowing down.
2. Global economic growth is projected to be 3.3% this year, below the 3.5% seen in 2018 and the lowest since 2016.
3. Unemployment rates are rising globally, with more people looking for jobs but not finding them. In some countries, like the U.S., unemployment rates are above 10%.
4. Oil price has fallen sharply this year, hitting $60 per barrel for the first time in over three years. This has hurt economies across the globe which rely heavily on oil exports for their income.
5. There is a lot of anxiety about financial stability worldwide, with many people worried that another financial crisis is looming.
The Top Five Industries That Are Struggling in the Global Economy
Industries struggling in the global economy include automotive, chemicals, coal, food and beverage, and oil. Here are the top five sectors that are working most in April:
1. Auto manufacturing: Global car production contracted for a third month in April as companies retooled to meet stricter new emissions regulations. The industry is forecast to lose $27 billion this year.
2. Coal mining: The global coal industry has been contracting for years as countries move away from fossil fuels and invest in renewable energy sources. In April, global coal output fell by 1%. This follows three consecutive months of declines.
3. Chemical production: Companies have been cutting back on the production of chemicals due to weak economic conditions and falling customer demand. Exports of these products have also been declining as major economies grapple with a slowdown.
4. Food and beverage: Recessions have undermined consumer spending on food and drink, hurting companies that make these products, such as Coca-Cola, PepsiCo, Mondelez International, and Hershey Co.
5. Oil production: An increasing number of countries are abandoning oil exploration and development due to environmental concerns and dwindling resources. This has led to a sharp decline in global oil output, which was down 1% in April
The Global Economy is Growing
According to the World Bank, the global economy grew by 3.7% in 2016, much faster than the 2.3% growth rate of 2015 and the 1.6% growth rate of 2014. The global GDP rose to $77 trillion in 2016 from $75 trillion in 2015, marking the seventh consecutive year of global GDP growth above 3%.
The World Economic Forum has forecast that the global economy will grow by 3.9% this year and by 4.1% in 2017. The main drivers of this sustained economic expansion are a robust investment and private consumption worldwide. In addition, trade and financial flows continue to increase, providing further support for global commerce and investment activities.
However, despite these positive trends, some risks remain that could derail the expansionary momentum if not correctly managed. These include geopolitical tensions and uncertainty ー such as Brexit and the U.S. presidential election ー as well as low productivity growth in some regions owing to structural challenges, such as labor market rigidities or a lack of infrastructure development.
2. Rising commodity prices are benefiting economies around the world
In recent years, commodities prices have been upward thanks to increased demand from major economies such as China and India. According to Reuters data, this has resulted in a surge in profits for mining companies and other extractive industries worldwide, with mining sector profits rising more than 60% between 2009 and 2016.
This strong profitability has had a positive impact on overall economic activity.
The U.S. Economy is Steady
The global economy is slowly recovering, but some areas still need improvement. In April, the World Bank published its Global Economic Prospects report, which analyzed various economic indicators. Here are the most shocking stats about the global economy in April:
-The global economy is projected to grow by 3.4% this year, which is slower than the previous estimate of 3.6%.
-The world’s two largest economies, China and the United States, are expected to experience slow growth in 2017.
-Emerging markets (countries increasing in recent years) are still leading the way with growth rates above 6%. However, several developed countries (countries that have been experiencing slower growth) are catching up.
-Inflation remains low globally, with prices rising only 1.8% in April compared to expectations of 2%. This is likely due to continued low oil prices and robust economic growth in many countries.
-There were more job losses in March than expected, but employment has recovered from its previous decline and is projected to grow by 2 million this year.
China’s Economy is Slowing
China’s economy is slowing. The International Monetary Fund (IMF) released its April World Economic Outlook on Tuesday, and the report says that China’s growth rate slowed to 6.8% in 2016, down from 7.3% in 2015. This slowdown is a big concern for the global economy, as it suggests that the world’s second-largest economy may be unable to maintain its impressive growth rates in the coming years.
What are the reasons for China’s slowdown? There are a few factors at play here. First, economic growth in China largely depends on investment and infrastructure spending, which have been weak recently due to slower global growth and tighter financial conditions in some markets. Second, Beijing has been trying to reduce debt levels as part of its efforts to get the country’s finances under control. And finally, Beijing has been pushing through several stimulus programs to boost growth in sectors like housing and manufacturing—but these measures haven’t had much effect.
All told, these trends suggest that China’s slowdown could be more protracted than previously thought—and this could have significant implications for the global economy.
The Future of the global economy
The global economy is in flux, with many uncertainties looming over its Future. Here are the most shocking stats about the global economy in April:
1. The global economy is growing slowly and unevenly
Global Gross Domestic Product (GDP) growth slowed to 2.2% in Q1 2017 from 2.5% in Q4 2016, according to revised estimates released by the International Monetary Fund (IMF). The IMF also warned that “uncertainties surround the outlook,” adding that “the near-term risks to the global expansion are broadly balanced.”
2. The U.S. and China are slowing down the world’s economies
China and the United States are critical drivers of world GDP growth, but their growth rates have been slowing down recently. For China, this slowdown can be attributed to tightening credit conditions and slower investment demand; for the U.S., it’s mainly due to Donald Trump’s trade war with China. Combined, these two factors account for about half of the Chinese GDP growth slowdown since 2016 and one-third of the US growth slowdown.