This year was a trying one for both the U.S. and the global economy, with a host of challenges causing many economies to suffer. However, the worst may be over.
It is not hard to see why this year might be considered the year of global recession. The price of oil crashed to under half of its January value, affecting other commodities and bringing down a lot of companies in the process.
The economies of Latin America also crashed, Brazil most notably, while China’s growth slowed down significantly. Some of the country’s stock dropped dangerously low before the government jumped in with ill thought out emergency measures. The news from Japan is not any better, as no matter how much money the country prints they still seem stuck in limbo. In the meantime, Europe has started its highly controversial quantitative easing.
In addition to this, all the natural disasters and wars have affected many stock prices, with the U.S. share market being flat for nearly the entire year. However, despite all of this, the U.S. economy has kept its slow but consistent growth.
Predictions for 2016
Whether it will be at a record low or back to its 2015 value, the prices of oil will stabilize at some point. Brazil and its Latin American neighbors will come up with new policies, and there is certain to be renewed growth in both China and Europe.
Whether peace in Syria is achieved will also be largely irrelevant as its effect on boosting spending on defense will still continue, giving U.S. firms such as Lockheed Marten and General Dynamics new opportunities for profit. In addition, the rise of the cloud storage field which is also predominantly an American playground is sure to give the economy an additional boost in the coming year.