2017 -A World Economic Forecast!

The world economy looks much better than last five years. The world economy is on a recovery path. US election is over and with Trump on the helm expect some major big bang spending boost which can single handily lift the US GDP growth to more than 3.5%.

The Chinese growth of economy have bottomed out and expect more than 6.5% GDP growth from China in 2017.

The UK economy will be stagnant and awaits the BREXIT implications.

The French election looms large and don’t expect major economic change this year. Though defence spending in the world can lift the economy marginally.

The German economy to show modest growth of atleast 2.5-3% due rise in demand of German technology in the world arena.

Italian economy is on a recovery path so no major negative surprises expected.

Japanese economic recovery is on the anvil and with recovery in world economy the Japanese economy which is an export led country is sure to gain traction by the end of first half of 2017.

The rising defence spending of the major countries of the world and geo political tensions on some part of the world can spell boon for the Russian economy.

Smaller European Countries like Spain, Greece, Turkey and Cyprus will get ample support from their allies in a recovered world economies. Also the positive ripple effect of the recovered world will trickle down to these countries also. Many countries will gain from the increased logistics need of the increased trades between countries.

With the rise in OIL prices the spending will rise in Middle East Countries and will contribute to the growth of the world economy.

The money which was made available to AFRICA by different organisations specially by Christine Laggard of IMF will start to show result which will add further impetus to the world economy.

The Indian economy is on recovery stage and with de-monetisation, impending budget in February and Goods and Services Tax implementation by October expect at least 9% growth end of the 2017. The social reforms of Modi government will also start to show result both in Rural and Urban India. The ripple effect of the big spending in Railways, Defence and opening up of FDI in many sectors of the economy will be felt in the jump in the growth rate.

The positive effects of the de-monetisation which have bought more than, INR 1000Billion in the Banking  system will result in credit offtake to business and providing home loans to the masses.

The downward spiral in the interest rate have also began in the Financial Market which will give further impetus the growth of the Financial Sectors.

Expect a growth rate of at least 4.5-5% from the World Economy by the end of the calendar year. By the end of 2018 expect the World economy to scale a growth of at least 6.5% which is almost the likes of the world prior to credit crisis.

The Commodity market will also rally by beginning of 2019, though this will come along with inflationary pressures. The nominal rate of Growth by then of the world economy will more than offset this concern by then.

2017 will be the year of the foundation for next 2-3 year bull market in the World Economy and specially the Financial World.