Economy

The global economy:reasons to be cheerful.

 After financial crisis 2007-2008 developed countries tried to overcome economical problems and only United States had opportunity to support them. The scenario about winners who have been wealthy,resulting in skyrocketing inequality was completely wrong.

 Start with economic growth. After annual global growth  averaged 3.7%, people hoped that the growth would be higher. But as a result in the last four years, growth has averaged 3.4% what is hardly disastrous by historical standards.

 Developed economies had slower demographic growth than it was predicted. Instead of growing at 1,5% a year it was only 0,3%.

 Japan,the US,and the United Kingdom had brighter prospect than other countries. That made it much easier to grow in a period that includes the peak of financial crisis. Moreover, drop in a price on oil will make the taxes much lower  for people than they were.

 A fast rebalancing of two leader countries US and China made a more positive outlook of the economy. Their intertwined imbalances were key drivers of the financial crisis.

  China and other BRIC economies ( Brazil, Russia, and India ) are no longer growing as fast as they once did.

  Because of Russia and Brazil with their low commodity prices it was impossible for the world economy to achieve 4,1% growth that optimists  thoughts was feasible.

  A huge growth of China's GDP disproved the conventional wisdom.Under 14 years China's GDP had grow more than four times from $1,2tn to $10tn.

 In the beginning of the 21st century the  BRICS had been responsible for a third of the rise  in nominal global GDP. Nigeria’s and Indonesia’s economies had an instant  grown what lead to the fact that these two countries contributed  more to global GDP than EU has.

  Because of the fact that the capita income in developing countries is rising much faster than in advanced economies the key target of Millennium Development Goals – to halve the number people living in absolute poverty – was achieved much earlier than it was managed. No one can say that it's good time for world economy but one thing is clear: economically, at least, the world is continuing to become a better place.