World Economy in Turmoil

Since Hamburger Crisis peaked in 2008, world economy has slowly recovered. However, now, it is in turmoil again.

The Federal Reserve: Hard Decision?

US economy is in the state of low inflation, according to low commodities price which has occurred from oversupply in both oil and metal industries, while production grows. This is a hard situation for the Federal Reserve, to raise interest rate or not.

China Slowdown

Moreover, Slowdown growth in China has worsened in commodity price, due to lower demand. It also decreases world demand which causes problems in developing countries which are relied on export sectors.

Below Zero Interest Rate

In addition, two significant central banks in the world which are Bank of Japan (BOJ) and European Central Bank (ECB) have decreased interest rate below zero, but there's no sign of recovery in their economies. Theoretically, to decrease interest rate would stimulate economy.

Thailand

Meanwhile in Thailand, the export-oriented country, gets effects from overseas. And household debt ratio is so much high, this means the consumption part is no longer available to be grown, as consumption is a part of GDP. [Noted: GDP is composed of Consumption, Investment, Government expenditure, and Net export] However, there's a hope in government expenditure, because the government is focused on high-speed train and infrastructure which can increase G part.

What do you think about future in world economy?

*This blog is contained some personal view. Please use your discretion.