Global Economy in 2015

January 11th, 2015 Posted in Canada|Global Economy

Deciding Factors in 2015 Global Economy

Deciding Factors in 2015 Global Economy

As we enter 2015, the global economy will face steady turbulence throughout this year. There are various bizarre factors that will come into play deciding the fate of 2015’s global economy. Falling oil prices, Russia’s freezing economy, and uncertainty in China are only a few to mention. Let’s go over some of the factors briefly.


Sinking commodity prices will affect oil and other mining sectors. The slowdown could result in less investments and lower hiring rates.

Consumer debt has reached a new peak, making the household debt-to-income ratio record high at 162.6 percent. As an interest rate hike is on the horizon, more personal bankruptcies and a housing market slowdown are a possibility.


The nation’s very first rate hike since the recession is a possibility. If this happens, expect market volatility. The US is also facing a tremendous debt crisis with its 3.2 trillion consumer debt. Also, a strengthening US dollar could cause tightening financial conditions in other countries.


New elections in several countries will bring new economical challenges. Although European leaders will try hard to save the Eurozone from the brink, Greece and Italy will fuel the fire further with their ailing economies. A Japanese-like deflation seems to be a possibility.


China can’t keep up being the driver of the global economy and at one point it has to wither away. A slowing Chinese economy will impact other countries and will cause market instability. Property slump and higher bad debts in its financial system add more concern.


Deep sanctions started causing a deep freeze in the Russian economy and there is no near exit. A plunging ruble and higher interest rates are helping the country to fall into recession. Further crisis in the Russian economy will make other countries on earth suffer as well and there is no guarantee that it will make Russia take a softer approach on Ukraine.


Collapsing oil prices will put more money into the consumer’s pocket, thus fuelling global economic growth. However, it could lead to geopolitical consequences and financial stress on oil producing and other countries, which could be like a double-edge sword.

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