World Economies Have Been Growing in Sync – What Does It Mean?

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Published by Taylor Financial Group

There have only been three occurrences of synchronized growth among the World’s largest economies since the 1980s.  The second of which was in the mid-2000s, and the third is happening as we speak!  The United States, China, Germany, Japan, France, the United Kingdom, and India (considered the World’s seven major economies) each grew more than 1.5% in 2017, according to estimates from the International Monetary Fund.  Last year’s world-wide economic growth is the first time since the 2008 financial crisis that we’ve seen such global progress.  This synchronized economic development was first noticed in 2017, when the Organization for Economic Cooperation and Development found that all 45 major economies were growing at the same time.  So, what does this mean?

Continued Synchronized Economic Growth for 2018

Recent data from JPMorgan Chase indicates that industrial production levels are the most robust they’ve been since 2011, “powered by impressive gains in global retail sales and capital expenditures,” according to David Hensley, Director of Global Economic Coordination at JPMorgan.  At least partially as a result of this growth, the markets have been soaring over a one-year period, for the most part.  This united global strength can partially be contributed to its ability to “self-reinforce.” For example, as pointed out by Jay Bryson, Global Economist for Wells Fargo Securities, we can see how growth in the US contributes to growth in European exports and the European economy, which then comes back to the US in the form of higher demand for our own exports.  The same types of cycles occur globally from economy to economy.  And with exports increasing the way they have been, this type of expansion can continue for a long while.  In fact, the International Monetary Fund recently estimated that 85% of the world’s nations increased exporting in 2017.  That’s huge and a good indicator of how things may continue for 2018.

How Long Will It Last?

History shows that these periods of global growth tend to last about three to five years, give or take.  When it happened in the 1980s, it lasted for about five years.  Then, again, in the 2000s, it lasted for approximately three years.  Since we only just started seeing this synchronization in 2017, economists are predicting we may continue to see this economic expansion across the globe for another few years.  This prediction is, of course, notwithstanding the possibility of geopolitical issues, like wars and policy changes, as well as other potential economic challenges.  But economists remain optimistic for continued world-wide economic progress, for now.

Overall, economies near and far have been good to us and the markets have been performing well.  That’s not to say that we won’t continue to experience some bumps in the road, as we’ve mentioned before.  But let’s enjoy this almost unprecedented global harmony while we can.

If you have questions about your investments or your financial plan, give us a call today.  We are ready to help you build a better future.


facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.


Spring Cleaning

When it comes to spring cleaning, the hardest part is to get started…but with a plan in place your financial closet refresher will get you on your way to a stimulating rest of the year. Your spring cleaning financial plan can be as simple as these three steps:

Use Your Budget to “Increase Your Paycheck”

I recently celebrated another birthday. I was disappointed when I remembered that, while my toys have gotten more expensive, they do not bring me even a fraction of the excitement a new set of Legos did when I was 6. But upon reflecting on some of the financial changes I’ve experience over …

Sushi and the Art of Stockpicking

Published by Rob Furlong Every year around the Oscars I remember that between two kids, a career and countless other commitments, I haven’t seen any movies since, well, the same time last year. This leads to a week of late-night binge watching, usually of movies that have lingered in my Net …

Understanding the Fiduciary Duties of a Trustee

If you have been named as Trustee or Successor Trustee of another’s Irrevocable Trust, you may be wondering what exactly the role entails. For Successor Trustees, your duties will not begin until the current Trustee is no longer able or willing to perform in that capacity.
1 2 3 209 210 211 212 213 215 216 217

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation