Global Economy

The global economy, at a basic level, refers to the exchange of goods and services around the world.

Global economic conditions, trade and capital flows have substantial implications for the Australian economy, and for Australia’s regional trading partners.

Understanding the broad trends, emerging challenges and opportunities that exist within the global economy is crucial.

Lucky for you, our editors and analysts at Money Morning cover this section daily.

The modern global economy became highly integrated following the 2008 global financial crisis, a great example as to explain the interconnectedness of the world economic system.

What first began as a localised problem within the residential asset-backed securities market in the US, eventually saw the fall of major financial firms across the Western world, and ultimately pushed the US and Europe into a deep and prolonged recession.

Although global economic growth has somewhat recovered since then, it is still much lower than pre-2008 trends. The hangover remaining from the crisis has caused high unemployment levels and inequality throughout much of the developing world.

More recently, the Chinese economy has started to rise to a global power, and India and Indonesia have become major players in the global economy.

It’s important to pay attention to these changing trends to protect yourself and your assets.

For the latest international economic news covering international markets, trade, stock markets, investment trends and more, read on…

EU Breakup to Shake Markets Next Year?

The political disruption going on in Europe could be a defining moment of 2019. But while it might push stocks prices around (in the short-term), you shouldn’t let it dictate where you invest in the new year.

Uranium Market Draws on new Strength

Output of the global uranium market has dropped off in 2018 against growing demand in Asia, which is driving prices higher. A low price environment has also caused major uranium producers to suspend production, which has helped lift prices to fix the supply and demand imbalance.

The Supply Glut is To Blame for Tumbling Crude Prices

The US, Russia, and Saudi Arabia now pump more oil than the 15 member OPEC block combined. And as Bloomberg reported this week, new pipelines in the oil rich US’ Permian Basin are scheduled to deliver an extra two million barrels of oil per day to the Gulf Coast within 18 months.

The Challenge of Wage Growth

If wages could just increase enough, they argue, we’d all have more money to spend. In turn, that would lead to higher demand and activity.But here’s the kicker.

China: Big Opportunities and Bigger Hurdles

China is quickly racing towards a problem. Manufacturing is a dying industry. Yet China doesn’t seem all that bothered. They want to become the manufacturing power house for higher value goods. So how does this benefit you?
Money Morning Australia