2015 Global Economic Outlook - Essay Example

Statistics have proven that good things are happening in the economic world in various regions. There are strong sales of recreational vehicles made in northern Indiana. The company has recovered and it is being referred to as the ‘white-hot center of the economy’. The CEO of Jayco projects that the industry will tie unit sales records in 2015 and break them in 2016. He argues that this will be due to the rising U.S. employment rate and the continued low-interest rates. The U.S. as a whole is also emerging as the country that will power world growth in 2015. This is because companies such as Google creating more jobs for thousands while in Silicon Valley, Apple is selling tons of iPhones globally (Coy, 2014).

The projected turnabout of the American economy is welcomed as a recovery from the financial crisis that was experienced in 2008-09. Major economies in the world such as Japan dubbed the financial crisis “Lehman shock” as there was no growth in the global economy. The latest outlook by the International Monetary Fund called global growth as “mediocre”. An economist by the name of Blanchard views the stagnation of advanced economies remains a concern at this time. Also, emerging markets seem to not grow as fast as they used to without inflation (Coy, 2014).

The IMF has projected the losers in 2015 are likely to be Argentina, Venezuela, and Brazil. As to the Russian and Western Europe economies, they will be weak. North America will be pretty solid. Growth is projected to be in South and East Asia as well as in most African countries. The global economy is taking longer than expected to recover from the much debt during the last decade. Three years ago IMF had projected that the world economy would recover by 2015 at a 4.8 percent growth rate but to the contrary, the expectations have been met only by the U.S. Analysts have argued that the disparity in growth rates among the big four economies makes the global economy to be affected at large (Coy, 2014).

Taxation and spending fights will probably heat up in 2015 more so in the eurozone. France and Italy are slashing with Germans about their deficit budget size. The European Commission allowed France and Italians to run oversized deficits in October. This was because of the 15 percent unemployment rate that makes it difficult to run a balanced budget. Gartman viewed the austerity by the Germans may make it hard for euro nations to experience growth in 2015 (Coy, 2014).

In conclusion, my recommendations would be for the economies that have a higher percentage of unemployed people to run unbalanced budgets to foster growth. Also, various economies should invest largely in R&D so that new companies up to create jobs for the public. The impact of this will be an increase in consumer consumption and the global economy will grow consistently from 2015. Also, peace should be embraced too to hinder sanctions that might impact negatively a country. Read More