Last year was full of many notable incidents that affected national and global economics. Some of these were easily predictable and others that came out of the blue. From China devaluing its own currency to Greece coming so close to exiting the EU and Eurozone, there were plenty of events that had a big impact on the world’s finances in 2015.
This year is bound to be full of many unpredictable events that will affect global finances in both positive and negative ways. However, there are some more predictable events and factors that are expected to happen in 2016. You wouldn’t bet against the following influencing the world’s economic landscape in one way or another.
The world’s financial eyes have been on China for a while now, with the country still predicted by many experts to become the leading economic power one day. After taking the shock move of devaluing its currency last year, though, it has undergone further turmoil.
Shares on the stock market have been falling, its currency value has continued to drop and few can predict what will happen next for the Chinese economy. Due to the country’s size and financial power, especially over neighbouring nations, whatever happens, to its economy in 2016 will have a big impact, with growth a large possibility.
One of the world’s other leading financial powers, the USA will be undertaking its 58th Presidential election in November. The rise of ISIS, gun control regulations and the implementation of national healthcare may be some of the major policies being discussed, but the economy is always on the agenda.
The result of the election could have a huge impact in many ways, no matter which side wins. The country’s finances could be invested in different areas depending on who wins, impacting upon other nations in various ways. More money could be spent on fighting ISIS or ploughed into their healthcare system, having big global repercussions.
Ongoing EU Negotiations
Greece’s financial meltdown nearly lead to them being the first country to leave the EU, and while bailouts were agreed, their future still remains uncertain. A few other nations are on the fringes waiting to join the EU too while various countries are considering their future in the EU.
The UK may finally have its referendum on the issue, and an exit could have big consequences on the wider economy. In the meantime, Britain is still trying to renegotiate various terms regarding the country’s relationship with the EU, which could swing voters for or against membership. Either way, there will be some sort of financial reaction.