The global recession of 2008 was one of the biggest economic shocks within the last few decades, and whilst global economic downturn is inevitable, it could be argued that we are approaching something alongside the scale of the 2007-2008 global financial crisis.
A recent article posted on the Independent published here discusses the future outlook of the global economy and compares the projected growth rates of the top economies of the world, and it certainly opens up the picture to a bigger scale.
The forecasts clearly indicate with no surprise at all, that China is still in a stage of rapid growth and its economy is set to expand by 6.5%, despite a fall from 6.8% in the previous year. On the contrary, European countries such as Germany and France face some growth around the 2-2.3% level, whilst the UK falls far behind at a rate of only 1.4%, given the uncertainties that the impact of Brexit will impose, this isn’t much of a surprise.
Economic growth may be good, but don’t be fooled.
A standard business cycle would indicate to you that another recession following a period of great prosperity is not an uncommon sight. In fact, it’s essentially unavoidable.
There are many questions the global economy is facing heading into 2018. Such as will Brexit benefit or damage the UK economy? Or will the outcomes crumble the whole European Union as we know it? This, combined with the continuous surge in economic growth in China, and increasing tensions between the US and North Korea, really leaves us in a point where no one can tell you what the future of the global economy holds.
We know another global recession will happen in the future.
It just depends on the scale. All the factors discussed above can single handily put the whole global economy into a spin. The reality is that we must get used to this type of political and economic change and find ways of minimising the overall impact so that we reduce the overall impact on regular people, such as by improving job security, subsiding certain sectors and providing small businesses with the finances to deal with economic downfall.
Let’s hope the mistakes from the past can be learned from and used to contain the next global recession. This time, the impact could be so detrimental that it could potentially break an entire union that has been around for over 24 years, and has provided great stability to the world.
International Political Economy student & Cryptocurrency enthusiast.
Founder of OurEconomy.