The global economy is booming. Here’s what that means

https://www.cnbc.com/2017/11/03/the-global-economy-is-booming-heres-what-that-means.html

The global economic health has been in continuous growth, according to International Monetary Funds forecasts, due to strong global economies. Fewer countries have fallen into a recession this year, which is the lowest level in decades. What this means is that more countries have increasing GDP’s and their trading and industrial activities are increasing which is leading to an overall healthy economy. Torsten Slok, Chief International Economist for Deutsche Bank, says ‘the economy has never been in better shape”. We are going to see fewer countries falling into a recession. However, Slok says that just because the future global economy is predicted to keep growing this doesn’t mean that the stock markets will also have a promising growth. The global economies biggest risk to its recovery is inflation, which is low, but shows signs of picking up in the upcoming years. The rise in inflation could ultimately lead the Fed to increase interest rates faster than what the market is expecting which could cause the stock market to slow down its growth.

            A healthy global economy could lead to many promising things such as higher GDP for countries and more favorable trade overall. This favorable trade would help decrease the amount of recessions throughout the world, which is a huge reason why a global economy would cease to grow. The result would be that many more countries will have an overall higher standard of living because of a decrease in unemployment and an increase in disposable income and output, which could lead to more consumption. This healthy global economy could also lead to a lower trade deficit which leads to a lower cost of borrowing and increased capital to make more investments in business ventures, manufacturing plants and infrastructures. All these factors are helpful in a growing global economy, because the world economies are more intertwined operating more and more like one big system.