Perspective Of The Global Economy Until Today

Perspective of the global economy until today

Introduction

In this essay I will be developing the perspective of the global economy from now to 2019. Fundamental changes are being produced at a global scale, focusing on economic circumstances within disaster management when crisis in human development occurs. The global crisis is a scenario that can trigger a pandemic, but nobody knows exactly what it really means or what it means to the economy. Today we face more and more realities, human life is decreasing every day, this virus is not under any control worldwide.

Developing

It is worth mentioning that before the coronavirus outbreak began to develop, the decrease in world trade was in a deceleration stage. Since the financial crisis of 2008/2009, commercial raw materials fell 0.4% in 2019, which is a considerable number. The gradual accumulation of several commercial bars worldwide, especially between the United States and for China, causing the famous domino effect among the most connected global chains. World economic growth is not working well and it seems that world trade will be reduced for the second consecutive year.

Similarly, microeconomic impact is also essential to guarantee timely global economic growth. The company’s behavior in the largest market constantly changes. He is very concerned that global suppliers are affected, since this will lead to a production of small lots, economies of scale, loss of scope and learning. Obviously, any imbalance in the economy occurs due to the high existing unemployment rate, salaries and income distribution.

Mostly the company that has a vital role within the economy is affected in services areas such as aviation, tourism and commerce. Likewise, the increase in the crisis and the scarce positions to work in specific sectors will have a significant impact on the labor market. For micro, small and medium enterprises, it is difficult to keep these operations in a reasonable order and become active, especially when historical moments related to Coronavirus disease are currently living (COVID19).

The world economy is being affected by this pandemic, where the health, humanitarian and economic crisis has worsened unprecedented. Although it is not yet known with certainty when this pandemic will end, the economy continues to fight to maintain a rhythm similar to that of war. Therefore, for the interruption of the aforementioned production activities and defendants, the traditional market mechanisms may not be enough to face it.

Therefore, possibly economic perspectives change radically as the government and central banks get more involved in the economy during and after the crisis. Developed economies have a solid governance capacity, solid health systems and the privilege of formulating reserve currencies in relatively similar conditions to deal with such crises. However, some emerging markets and developing economies do not have similar assets and face health, economic and financial crises at the same time, and need continuous assistance of bilateral creditors of developed economies and international financial institutions.

Situation and perspectives of the world economy in 2019

At the financial level, given the current current fall of domestic demand, the paralysis of economic activities, the interruption of the payment chain and the loss of profitability and wealth, the liquidity in the world economy has decreased. In addition, due to uncertainty about the intensity and duration of the disease that we are going through today and economic stagnation. Liquidity problems made the Federal Reserve act within the bank loan market. However, a strong stretch within the impact on economic markets can be explained by the lagoons that have been for many years.

The hoarding of liabilities significantly exceeded the growth of world income and obtained an unprecedented level: in 2019, the global debt reached 253 billion US dollars approximately, which represents a lush percentage in world GDP. The huge debts generated are accompanied by a reduction in loan deadlines and an increase in investor risk behavior in the search for profitability. However, the debt has increased and has occurred in all economic sectors, which has caused a large monopoly since that global economic crisis and its acquisition of debt in the non -bank business sector.

The breakage of the supply link and the decrease in world growth makes it difficult to obtain low income and the tribute to the services for debt in the payment chain, and it is likely that it affects the economic sectors. This year’s world economy has spent the worst recession since the Great Depression of 2008. The background of the recession that caused the global economic crisis ten years ago. The so -called ‘great blockade’ is expected to cause a strong contraction of world growth.

It is expected to be partially recovered by 2021, with a rate in increase in the trend, but the level of GDP will continue to be lower than the trend before virus outbreak, and pleasant recovery is very uncertain. There is the possibility of registering worse data that reveal economic growth soon. This is developing with more strength if pandemic and containment measures are prolonged, where emerging and developing economies are being more and more beaten. Restrictive financial conditions persist or the effects of the closure of companies and long -term unemployment become more permanent and generalized, throughout the process, the multilateral contribution is essential.

Apart from cooperating in teams and experience to strengthen health procedures worldwide, we must also work on a global scale to guarantee that both rich and needy countries have quick access to therapies and vaccines developed for COVID-19 in aNext future. The international community must also increase financial assistance to many emerging markets and developing economies. If it is necessary to pay a lot of debt, it may be necessary to consider breach or debt restructuring. Finally, it is useful to consider the measures that can be taken to avoid more irregularities within the pandemic.

Global progress within public health infrastructures can improve health care and global economy;These improvements include a richer and more automated information exchange of abnormal infections, a more anticipated development along with processes of test mechanisms and a reserve of a global inventory of personal protective equipment. And agreements adopted to eliminate commercial restrictions. Basic supplies.

Based on economic activity it is assumed that pandemia yields in the second half of this year, and the protocols can be gradually eliminated. Based on economic activity, it is intended that the global economy grow 5.8% by 2021. Thanks to the support provided by the policy. Similarly, compared to the last six decades, international organizations also get involved in the search for solutions for any crisis process that is currently living. The net capital flow of each developed and underdeveloped country is betting on resources used for debt provision and the ongoing profit remission.

Foreign countries have had sustained, independent and sustained economic development, as well as a series of policies oriented to the exploration of goods at a global scale. Likewise, the structural reforms promoted by the ‘Washington Consensus’ and the economic policies of the International World Fund and the World Bank have had a direct impact on households and homes. For example, women must work longer to keep family income, while immigrants must send money to their families.

For the development agenda to enter into force, the country must generate employment, credit, education, housing and health. Therefore, this exacerbates gender inequality and makes a gender budget necessary to reverse the negative effects of economic development and human development. When analyzing the coup of reforms on social inequality, especially with respect to women, the relationship between macroeconomy, structural and gender reforms is obvious, since the sector is vulnerable to any decision to change monetary, fiscal and financial policy. However, per capita income has increased, but in most households there is more than one supplier.

In underdeveloped and emerging countries, globalization has led to the liberalization of the capital account, greater direct investment and higher capital flows, but in no way it is fair to achieve employment. It is undeniable that the past decades have advanced in the decline of illiteracy, education, infant mortality and the protection of human lives. Similarly, drinking water is provided, but the concentration of income has deteriorated and has not yet achieved the development rate of the GDP recorded in the two periods prior to the crisis next to the debt. Among human development indicators, it is obvious that women enjoy a priority of public policy in terms of education, health, access to credit and women’s parliament.

On the other hand, for many companies from different countries, China has become the main destination of foreign investment. However, the last and novel is China’s investment abroad, buying and establishing companies abroad. China has the second largest international reserves in the world. China is the valuable financial investor in the world, especially the United States.

As the United States, China is the locomotive of the world economy. In addition, the Asian crisis and from the recovery of the crisis at the beginning of this decade. It can also serve as a locomotive for the world economy to advance towards the next cyclical crisis. However, China’s increasingly fierce competition in trade globally and the domestic market has led to the bankruptcy of the company and the transfer of production to its own land. This method has aggravated the excess production of industrial products and has made production excess production of raw materials and energy, and prices have increased considerably.

At present, China’s high growth rate has decreased slightly, which has caused panic in different markets. Today’s economic crisis will be catastrophic. To avoid the impact of a possible crisis in China or the global economic crisis, China initiated a new stage in 2002, which prioritizes development towards the interior: housing industries, the car, real estate and infrastructure, combining this internal and externally. Strong development. In this way, given a possible crisis, China can transfer much of its exports to the domestic market to the domestic market with enormous growth potential. In developed countries where the domestic market is very saturated, these options are very limited.

China is considered an integral and reinforcing force of the market. The regulation of certain markets and long -term strategies will make capitalism depend more and more on China than China. One of the most important facts is that China is today the most profitable country in the world economy. Likewise, the unbalanced development of countries and regions deepens, manifests more rapidly and appears at all levels at the current globalization stage. In the central state, the degree of hegemony has been redefined. Some areas have experienced great development, while others have stagnated and returned.

As we have pointed out, the United States has overcome the decade and recovered its hegemony. The unequal development of Asian countries is very strong. In recent decades, China’s great development has passed to the forefront. World capitalism produces development and underdevelopment with its internal logic. The use of creative national strategies in the world economy can overcome this internal logic.

conclusion

Once the current disease we face today decreases and work sectors and schools open again, these efforts will greatly help to ensure that the world economy returns to its normal development. Work and their reactivation, or the return of consumers to public places;In short, so that we can return to economic practices and social interactions that we until recently, take for granted. Similarly, driven by globalization and neoliberalism, the reorganization of Latin America has also deepened underdevelopment. The increase in poverty and the same inequality in the distribution of income are largely due to the simple reappearance of capitalism, although the profits are high, the level of investment in the establishment and expansion of companies is low.

Finally, there is no doubt that the support of commercial relations between China and the United States itself and the concern that they can lead to currency wars are undoubtedly the main focus of global risks. Another worrying element is the magnitude with which monetary policy elaborates to prevent recessions in the United States and Europe (especially Germany). However, there are two points that cannot be ignored: on the one hand, China’s economic slowdown is the most destructive impact of the commercial war;On the other hand, China’s commercial crisis has had a huge impact on China. On the other hand, pay attention to three factors. The first is the development of the service industry, to what extent it has been infected and affected by industry corrections. The second element is the development of the US labor market, and the third element is the development of the commercial benefits cycle in the regions developed.