by John J. Metzler
Weirs Times Contributing Writer
UNITED NATIONS -The world economy is slowly improving with a forecast for 2.7 percent global growth, but there’s still a way to go to reach pre-recession levels. That’s part of the prognosis of the UN’s World Economic Situation midterm report for 2017 which cites stronger economic recovery in many developed economies such as the U.S., Japan and the European Union, but warns of a deterioration in many developing countries especially in Africa.
The American economy is performing better than the UN’s start of the year estimates with growth for 2017 expected to reach 2.1 percent. According to the Report, economic activity in the United States accelerated; investment in mining industries rebounded. This of course reflects the Trump Administration’s commitment to revive the coal mining and steel industries. Equally, high post-election consumer confidence has led to a generally more favorable economic perception throughout the USA and has supported wider job creation.
The Report adds, “Significant tax cuts and an infrastructure investment program are under discussion in the United States.” Should such overdue measures pass Congress, the U.S. economy will see further expansion.
Yet the Report warns, “The policy environment in the United States remains turbulent, as proposals by the Administration confront Congressional and judicial hurdles.” This becomes abundantly clear when viewing Administration policy inside the maelstrom of partisan political infighting. Moreover, question marks concerning established trade policy have shadowed the commercial environment with key partners such as Canada and Mexico.
Slow but certain growth is predicted in Japan with a rise of 1.1 percent and in the European Union where growth still remains steady at 1.7 percent. Continue reading