What will 2017 bring for the global economy? Since the global economic crisis and financial meltdown of 2007-08, the world’s economy has been on life support, unsolved problems papered over by massive liquidity injections and zero-interest rates by a multitude of central banks. This monetary chemotherapy cannot be sustained indefinitely, and by the pattern of normal business cycles, the world is overdue for another recession.
Added to all the uncertainties, we now have the shock election victory of Donald Trump in the 2016 U.S. presidential election. Trump ran as an economic nationalist. Will he bring about a trade war with China, the world’s number 2 economic power?
For better or for worse, Trump will have the most important impact on the 2017 global economy.