After Brexit, will other EU countries follow suit?

After Britons voted to leave the EU, will other countries follow their lead?After Britons voted to leave the EU, will other countries follow their lead?

Europe is in turmoil after the shock outcome of Britain’s referendum which saw a slim majority of is citizens vote in favour of Brexit. The imminent separation of the UK from the European Union has given voice to political parties in other countries, which are calling for people to be given a voice on their membership of the bloc. But, after the global reaction to the UK’s momentous decision, how likely are other members to push for referendum? Read more…

Brexit fallout – the likely outcomes

Britons have narrowly voted to leave the European Union but what are the consequences?Britons have narrowly voted to leave the European Union but what are the consequences?

There was plenty of anxiety in the run-up to the UK referendum on its membership of the European Union, but few could have predicted the full impact of the shock decision to leave. In the event, more than 17 million Britons voted to withdraw from Brussels which has brought into sharp focus a debate about some of the likely outcomes. With issues ranging from the problems of economic instability to the possibility of a break-up of the union itself, it appears that the Brexit result could have much wider implications than originally thought. Read more…

Britain votes Brexit – what happens next?

In a shock result, Britons have narrowly voted to leave the European UnionAfter Britain’s historic vote to leave the EU, what are the implications?

The shock result of the UK’s referendum on EU membership is causing uncertainty across the world. On Thursday 23 June, more than 17 million Britons voted to exit from Brussels. Although formal negotiations will take two years to conclude, the response from the stock markets was swift with exchanges everywhere seeing an instant downturn, as well as flight from the pound. The country has been stripped of its triple-A credit rating. The prime minister stepped down and will leave it to his successor to enact Article 50 of the Lisbon Treaty which will begin the Brexit process. Read more…

Austerity not working, claim IMF economists

International Monetary Fund claim austerity measures aren’t good for global economyInternational Monetary Fund claim austerity measures aren’t good for global economy

Economists from the International Monetary Fund have issued a stern warning that austerity measures promoted by countries such as the UK and Germany aren’t helping to grow the global economy. The IMF article blames the last few decades of neoliberal strategies, arguing that while the expansion of global trade has lifted millions out of poverty and the privatisation of state-owned enterprises has led to the more efficient provision of services, the approach has failed to deliver in other areas. Read more…

Not-so-happy new year for global markets

Markets in turmoilMarkets in turmoil as World Economic Forum ends

As 2016 gets underway, global markets are already experiencing turmoil. Markets in Europe and the US endured some of their steepest losses for decades in the first few days of the New Year, sparked by fears over continued problems in the Chinese economy where trading was temporarily suspended to try to stem the haemorrhaging yuan. Many markets seem to be edging dangerously close to ‘bear’ territory – indicating a fall of 20% or more from their most recent peak. Read more…

US economic recovery slows

Economic slowdown New figures show the US economy slowed at the end of 2015

Fresh Commerce Department figures show that the US economy slowed significantly in the final three months of 2015 amid signs of a global economic slowdown. Spending by businesses and customers alike was cut and US exports reduced. The disappointing 0.7% growth rate raises concerns about the resilience of the US economy against the backdrop of global stock market turmoil which, in turn, is fed by fears of continued economic slowdown in China and plummeting oil prices. Read more…

What next for the global economy?

Global economy pulling in two directions as Federal Reserve gets ready to raise ratesGlobal economy divided as Federal Reserve gets ready to raise rates

With businesses readying themselves for an interest rate rise in December, the global economy seems to be divided. A slight rise from 0.25% to 0.5% may not seem like a sweeping gesture from the Federal Reserve but it is a game-changer, nevertheless. While Fed boss Janet Yelland feels the US economy can withstand a modest rate rise, some economists are worried that the predicted rise in US interest rates won’t necessarily be the tonic needed to increase the pace of recovery and that the Eurozone, Japan, China and BRIC countries are still far from stable. Read more…

Fed rate rise looks to be on the cards

Signs of economic recovery raise expectations of December rate hikeSigns of economic recovery raise expectations of December rate hike

The buoyancy of the US economy will be tested if the rate rise indicated by the Federal Reserve goes ahead in December. The Commerce Department recently reported that GDP grew at an annual rate of 2.1% over the July-September period, up from a previously estimated figure of 1.5%. While this may still represent a slowing in growth from the previous quarter, it is likely to influence decision-makers at the Federal Reserve as they consider their first rate rise in 9 years. Read more…

No upturn in sight for Chinese economy

China’s economy shows no signs of recovery China’s economy shows no signs of recovery

Chinese manufacturing activity fell to a six-year low as China’s president defended his government’s stock market intervention during his recent state visit to the US. Xi Jinping claimed that although the economy was experiencing difficulties, it was on the road to recovery. International concern remains, though, as evidence of the country’s economic slump was seen in a dip in average annual growth rate to around 7.4% – with IMF forecasts standing at 6.8% for next year. Read more…

IMF forecasts weaker economic growth

Head of the IMF, Christine Lagarde, warned of a period of weakened economic growth aheadChristine Lagarde warns of weakened economic growth

The head of the International Monetary Fund has warned of a continued global economic slowdown – especially in the large emerging market countries – that will cut global growth to its lowest level since 2009. Forecasts to be published by the IMF in October will show global economic activity lower that the figure recorded in 2014 and predict that only a modest acceleration can be expected in 2016. Read more…