With 2015 concluding last week, it gives us the opportunity to make resolutions for the year ahead. But what will be some resolutions for the global economy in 2016 ? The global economy can also have significant impact on the real estate market as well. The reason is because if the economy is not performing well it could lead to people not looking to buy houses or having people not being able to pay mortgages. It is too early to tell on how much of an effect it will have and we may not have the answers for awhile, but here are some ideas on what to expect in from world economy in 2016.
The United States and China are two of the largest most important economies in the world and how the two economies perform have a drastic effect on everyone else. For the U.S, the Federal Reserve has raised interests rates for time since 2006, which is huge deal. This can obviously cause much of a concern for economies that have started to be on the rise . According to bbc.com the change in the United States interest rate will “likely to lead to higher borrowing costs, and lower currencies, because money will be moved to the US to benefit from the rising interest rates there” However, so far there has been nothing to worry about in the financial world since this has occured, but you never know what could happen down the line.
China, is another prolific economy and they have encountered some negative economic growth recently. However, due to the slow economic growth there has not been a sufficient crisis that anyone has to be concerned about, but it is still nothing to brush away. The decline in manufacturing was seen to be as an issue for China and the with this type of decline it has had a major impact on global commodity prices such as oil, metals and food.
Oil has been yet another concern for the economy. The price of oil is not as expensive as it was a year ago, but many consumers feel they are not seeing the full benefit of it. Professor Kenneth Rogoff, a former IMF chief economist said that people in some countries are using oil “as an opportunity to cut subsidies rather than allowing consumers to get the full benefit”.
For more information, check out: http://www.bbc.com/news/business-35191325