globalEDGE Blog - By Author: Michael Crenshaw

Although new recent releases like “Black Panther” and “Avenger’s Endgame” have made waves in the international box office market, it still hasn’t grown much in recent years.

Since the financial crisis in 2008, Germany has been the leading economy in the European Union. Due to turmoil in the global economy and some negative internal forces, the historically strong and stable German economy is expected to experience low growth in 2019.

Just 10 years ago, no one knew what Netflix was. In fact, in 2008, then Blockbuster CEO, Jim Keyes said, Netflix isn’t “even on the radar screen in terms of competition.”

Today, Netflix is the preeminent leader in the streaming service business with more than 125 million subscribers worldwide, and Blockbuster declared bankruptcy only two years after that interview.

Brazil is the largest country in South America and the fifth largest country in the world. They have endured much financial and political hardship as a nation.  Just three years ago, Brazil's economy experienced 8 consecutive quarters of contraction. GDP declined 3.6% in 2015 and 3.8% in 2016. Recovering from their worst recession in a century, Brazilian citizens had to overcome corruption from thousands of politicians and business owners alike. Even the president was arrested and prosecuted for crimes of corruption

As a result of this, new controversial president Jair Bolsanaro was elected with high hopes for Brazil's economic future. President Bolsanaro has a plan to revitalize his nation through economic reform.

Specifically, he had three goals that he wants to reach to make a positive difference in Brazil. He wants to privatize government owned businesses that dominate the economy, he wants to cut taxes, and he wants to make trade deals that more closely align with the interests of Brazil. Eletrobras, Brazil's state owned electricity company, is currently scheduled to be partly sold to public investors by June 2019. He plans to increase the minimum annual salary to pay taxes from $6,000 to $30,000, and he plans to install a single 20% tax rate for all households. Finally, he hoped to mend fences with America to promote beneficial trade relations.

Just three months into his presidency, we haven't been able to see the results of Bolsanaro’s presidency. The outcome of this legislation will have a monumental effect on Brazil's presence in world relations in the future.

1. Blockchain Technology will gain traction

Blockchain, the driver behind bitcoin, is a technology that uses a common ledger of information that updates simultaneously with every transaction on a public network of thousands of computers. Benefits of blockchain are that there is no singular controlling entity that can manipulate data and that there is no single point of failure except that of human error. In 2019, it is expected that we see blockchain technology used in areas outside of digital currency. Walmart has adopted blockchain to keep track of its produce supply chain, executives believe that it will help find where food-borne illnesses originated. JP Morgan has also found a practical use for blockchain technology. It has begun a trial project that uses blockchain technology to expedite overseas payment transfers. Blockchain has the potential to make business easier and more credible in many areas.

Drug prices in America have become an issue for many. Medications can cost two and three times more in the United States than they do in European countries. A drug that treats arthritis, psoriasis and other similar conditions, Humira, costs $822 dollars in Iceland but $2,669 in America.

In the 2019 World Economic Forum in Davos, Switzerland, representatives from every nation and from the world’s largest businesses have gathered together to discuss new developments, problems, and initiatives around the world. The first two days of this year’s summit featured an address from Brazil’s recently elected president Jair Bolsonaro, discussion on shale oil by John Hess of Hess Corporation, and discussion of the IMF’s lower prospects on 2019’s economic growth.

Looking ahead into 2019, with uncertainty in the world’s equity markets, many investors are viewing real estate as one of the safer markets to invest in. With that being said, here are three countries with some of the most promising outlooks for 2019:

Imagine a video where a Fortune 500 company's CEO confesses to fraud, and his company’s stock falls by 50%. Only to find out that the video was fake. With the advance of deepfake technology, things like this could occur. Scenarios like this could have huge ramifications and they are not far from our reality, artificial intelligence and deep learning technology is making it easier to make fake videos that look realistic.

As of November 19, 2018, the United States Government has $21.73 Trillion dollars in national debt. In the past, that hasn’t been so concerning because strong demand for US debt kept the interest rates low. Collectively, Americans have been increasingly concerned and aware of the rising debt and the implications that come with it.

With international turmoil in OPEC countries, scientists clamoring over ‘the sixth mass extinction’ due to climate change, and costs finally becoming competitive in comparison to fossil fuels, renewable energy is becoming an increasingly significant industry for the future of the world’s economies.

In the 2000’s it was the internet, in the 2010’s it was social tech companies, the next big market disruptor of our generation is Agri-Tech. With the world population expected to reach 8.5 billion people by the mid-2030’s, and the continued degradation of the environment due to pollution, the need for more and better food is increasing.

What began as an extremely lucrative and beneficial relationship between the U.S and China has become a hostile one that has potential to change the economic landscape of the world. With the latest round of tariffs covering nearly half of all goods exchanged between America and China, both countries are bound to experience some collateral damage.