Connect with us

Business and Economy

World economy set for growth in 2017, but deficit still a problem

Published

on

ING economist sees PHL '16 GDP at 6.8%, '17 at 6.2%  (Photo by Allan Ajifo [CC BY 2.0)

ING economist sees PHL ’16 GDP at 6.8%, ’17 at 6.2% (Photo by Allan Ajifo [CC BY 2.0)

MADRID—The world economy is set to maintain a solid level of growth in 2017, but the deficit will continue to be a problem, according to the ESADE 2017 Economy Report published on Thursday by the business school and Banco Sabadell.

The report, which also looks at the possible effects of Brexit and the election of Donald Trump as U.S. president, predicts higher growth in developing nations, which can expect to see their economies expand by an average of 4.5 percent.

India is expected to see a 7-percent growth, and a 6.5-percent growth is predicted for China in the coming years.

Meanwhile, developed nations can expect their economies to expand by slightly under 2.0 percent, with the United States predicted to grow slightly over 2.0 percent and Britain, somewhere just below that figure.

Brazil and Russia can also hope for an upturn in fortunes after some difficult years.

Spain will see its economy continue to expand at around 2.0 percent, slightly below the growth witnessed in 2016.

While in Latin America, Peru, Bolivia and Colombia can await expansion of between 3.0 and 4.0 percent, with Chile and Mexico slightly below at 3.0 percent.

ESADE believed the U.S. economy would see short-term growth due to tax cuts and increased spending in construction, infrastructure and the military.

This effect, however, will probably be diluted by increasing interest rates and a higher public debt.

Similar short-term benefits from Brexit could also be expected, due to the falling level of the British pound.

But ESADE warned governments “should also look at the protection of some vulnerable groups to counteract the effects of the crisis over inequality” and recommended increased spending on research and development, health, and education.

Finally, ESADE predicted a “neutral” fiscal policy between 2017 and 2018 with the level of public debt slowly falling to a level of 87 percent of gross domestic product (GDP), as opposed to the 90.3 percent in 2013.

This should be possible as the result of falling interest rates, although the debt levels of some nations will limit their fiscal policies.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle2 weeks ago

Nobody Wants This…IRL (In Real Life)

Just like everyone else who’s binged on Netflix series, “Nobody Wants This” — a romcom about a newly single rabbi...

Lifestyle3 weeks ago

Family Estrangement: Why It’s Okay

Family estrangement is the absence of a previously long-standing relationship between family members via emotional or physical distancing to the...

Lifestyle2 months ago

Becoming Your Best Version

By Matter Laurel-Zalko As a woman, I’m constantly evolving. I’m constantly changing towards my better version each year. Actually, I’m...

Lifestyle2 months ago

The True Power of Manifestation

I truly believe in the power of our imagination and that what we believe in our lives is an actual...

Maria in Vancouver3 months ago

DECORATE YOUR HOME 101

By Matte Laurel-Zalko Our home interiors are an insight into our brains and our hearts. It is our own collaboration...

Maria in Vancouver4 months ago

Guide to Planning a Wedding in 2 Months

By Matte Laurel-Zalko Are you recently engaged and find yourself in a bit of a pickle because you and your...

Maria in Vancouver4 months ago

Staying Cool and Stylish this Summer

By Matte Laurel-Zalko I couldn’t agree more when the great late Ella Fitzgerald sang “Summertime and the livin’ is easy.”...

Maria in Vancouver5 months ago

Ageing Gratefully and Joyfully

My 56th trip around the sun is just around the corner! Whew. Wow. Admittedly, I used to be afraid of...

Maria in Vancouver6 months ago

My Love Affair With Pearls

On March 18, 2023, my article, The Power of Pearls was published. In that article, I wrote about the history...

Maria in Vancouver6 months ago

7 Creative Ways to Propose!

Sometime in April 2022, my significant other gave me a heads up: he will be proposing to me on May...