With the rapid changes in our world, it can be difficult to predict how our economy will change in reaction to international and domestic events. Despite a multitude of negative factors and events in the world today, the global economy is set to grow by about 3% in the next few years.
The projected growth for the global economy relies on a few key concepts such as stable financial markets, the fading of temporary economic drags, the stabilization of emerging markets, and avoiding conflict and sharp collapses. The United States and Indonesia are expected to be ranked within the top 5 countries with the largest projected economic growth. China, even though rich Chinese citizens are outnumbering wealthy Americans for the first time, will lose economic growth in the upcoming years. Entire continents such as Europe and Asia are also set to see economic growth.
While the global economy as a whole will see economic growth, there are dozens of factors that can damage the potential economic growth. Protests, such as those occurring in Hong Kong, are one factor that will prevent China from experiencing economic growth. Despite the cancellation of Obamacare, which decreases medical cost coverage for thousands of Americans, the United States will still be a leader in economic growth in the upcoming years. Globally, trade and technology tensions will slow down investments, and trade tariffs will create economic damage for all countries involved. The heat and natural disasters that result from climate change will decrease the supply of crops globally, causing an increase in the prices of food in upcoming years.
When analyzing the data of future economic change, it is important to recognize the connections between categories. Often, when governments work to solve one problem, another problem is fixed as an indirect result. For example, instead of focusing on economic growth as a whole, governments should work to fix individual issues such as stopping riots and preventing further climate change. When the smaller issues within the realm of economic growth are solved, the economy will thrive while our world is becoming a better place.