The global economy is one that becomes increasingly complex as more channels allow for interconnected national economies. Progression towards globalism ensures that many nations will take big steps to embrace or detract from more unified economics. As technology communication evolve, so does the way countries behave and interact with one another on all fronts. Wasif Vimawala and plenty other financial professionals see the macroeconomic realities as driving factors in political decision making. While this isn’t new for politics, 2019 will see these choices become more prevalent than ever. With that in mind, here are three macroeconomic political trends you should be aware of in 2019 and beyond.
While the 2008 financial crisis and its proceeding damage is relatively behind us, fear still looms. Many aspects of the global economy have been able to recover from the crisis, but the burden of another recession may be coming to fruition soon. The most notable factor in all this may be coming the political strain in Britain. The execution of a Brexit deal has been a disaster, and England’s departure from the EU is already beginning to make a ripple effect. Should a Brexit deal leave England with even less than hoped, it could mean a major recession all over again. Policy makers of the Western world will have to decide how they wish to address preparing for such an agreement. This event has put Wasif Vimawala and many other on high alert.
Political Instability and Uncertainty
Tensions amongst Russia and the United States has been one of the central focuses of President Trump’s administration thus far. These investigations, accusations and political conflict leave other countries and organizations concerned. It’s a heated and incredibly high stakes scenario that leaves allying policy makers split between allegiances in both trade and diplomacy. Should sanctions be thrown around, Russia could face substantial financial damage, as well as their trading partners. As for the United States, Russia’s response to any actions could be both unpredictable and tenacious. Wasif Vimawala has many concerns surrounding this, and it’s a central focus of macroeconomic politics today.
While China and the United States’ relationship may be at the forefront of this discussion, make no mistake about China’s impact on other western nations. China is on pace to become the biggest economy in the world, and distrust in them means economic damage for anyone. Recent security and privacy issues around Huawei’s business practices has many markets pushing back from their services, which has led to Chinese frustration. Additionally, tariffs seem to be a primary strategy for the United States when dealing with China, so it’s only a matter of time before we see what measure China takes in response. Wasif Vimawala, Ian Bremmer and a host of others that follow macroeconomics know that this is a key point of global change.
All in all, macroeconomic factors are driving political change every day. However, these are essential and ongoing events that impact today’s political trends and policy making.