The Changing Dynamics Of World Economies

Overall Changes In Global Economic Outlook in 2019

The international economic order is under significant stress, reducing near-term growth prospects and heightening uncertainty about the medium-term outlook
The overall global economic growth has been largely shadowed by the the America- China trade war. The two largest economies of the world are involved in a trade war. This has damaged the economic outlook greatly.
Another most important factor for the subdued global growth is the Brexit which has greatly disturbed the European Economy.
The global growth forecast remained at 3 percent for 2019, which is lowest since 2008-9 and this the very alarming situation for the world

Major Players of Global Growth

The most important player is America because it earn and generate more then 20 percent of the world total income
The second most important player is China which is also the world fastest growing major economy and it produces 9.3 percent of the total global GDP
The third and most unexpected player is India which was once the most rapidly growing economy even surpassing China. It has recently surpassed France as the 6 most important economy.
Other important players include France, Britain, Japan, Germany, Brazil.

Continents Involve in the Growth:

North America is the richest and with a major role in GDP.
Europe is the second most important continent
South America is the third richest continent followed by Asia
Africa is the poorest of the continent.

Problems for the Developed Countries:

The UK, with its ongoing uncertainty over leaving the European Union, has watched its economy recently shrink for the first time since 2012, and a no deal Brexit would force it to move towards recession.

Germany, the EU's biggest economy, is set to slide into recession thanks to a continued decline in its manufacturing sector.

Italy, the fourth largest economy of EU, was in a technical recession for the second half of 2018 and has faced continued economic woes from weak productivity, huge dept and political instability.

China's economy has continued to slow amid the trade war, too, although, not yet nearing a recession .IMF forecast only 5.8% growth for the world second largest economy compared to 6.6% in 2018 and 6.1% in 2019.

US, on the other has remained comparatively stable as compared to others . The growth is slowing which shows slight chances of recession while it continues to fight Global economic slowdown.

Problems for Deleveloping Countries:

According to the IMF 2019 World Economic Outlook (IMF WEO), the growth setbacks in the developing countries were higher than in the industrialized countries. Compared with their growth potential, the developing and threshold countries are therefore harder hit by the global financial and economic crisis than the industrialized countries that caused it.

Overall the recession has worsened prospects for developing countries meeting the Millennium Development Goals. The World Bank has estimated that up to 90 million extra people world-wide (62 million in Asia) will live in extreme income poverty (less than US$1.25 per day) in 2009 as a result of the global economic slowdown

Increased unemployment, under-employment and loss of income. Many laid-off formal sector workers are forced into low-income jobs in the informal and rural sectors (China is a good example)

Problems for Under Developed Countries:

These countries are most effected by the global economic recession.
For example Nigeria saw a decline of 70% in Revenues due to decline in crude oil prices, which caused a shard fall in domestic share prices.Due to these factors Naira saw a depreciation of 20%. As a result Dept servicing increased and cost of living rose as well.
Pakistan is also a example. the country economy is on a roller coaster ride. The country is going through the worst economic phase with low export and high imports. This decline in economic growth is attributed to Global recession and political instability.
These countries are then forced to take loans at high interest from the world lenders to meetup there need. and then they are forced to again take loan just to return the previous interest at a high interest, this vicious cycle begins which causes decrease in local currency. As a result debt servicing rises and inflation rises . Rate of suicide also rises.

Growth in 2020:

It is predicted that 2020 would be the year of financial crises by many leading magazines such as

Forbes
Independent

2020s is being considered as the worst decade.