Global Economy and Europe

Europe as a first world is believed to have declined to 2.1 percent in 2015 as the Eastern Europe was suddenly hit by low fuel prices, a serious disagreement in Ukraine and continuing results of temporary economic decline in the Russian Federation. The Western Europe is receiving advantage from low fuel import value and an average improvement in the member states of the European Union. On the other hand, the growth in Europe is expected to rise by three percent this year as oil prices drop slowly or unlikely to decline. The economy of Russia also improves and Ukraine returns to normal state. The increase of profit is determined by the way the region can handle the challenges such as geopolitical pressures, low oil costs and fixed external economic setup. When it comes to economic breakthrough, Russia is expected to compress by 0.7 percent this year before displaying positive development in 2017. Russia belongs to the top 15 of global economies, with fast improvements compared to Austria, Norway, Belgium, the UK and China, according to the 2016 Bloomberg Innovation Index. Extended period of low oil costs and global agreements will pull economic activity. Investors with poor conviction and high interest rates are alarming the process of investment and a sudden drop in consumer purchasing energy has damage consumption. The price index scored economies using investigative activities that a business chooses to conduct with the intention of making a discovery that can either lead to the development and application of high technologies in public industries. Aside from that, Russia also carried the major position of research application. Furthermore, there are some significant factors that affect the global economy in Europe. Europe has to increase their power to deal with important security issues. The refugee crisis in Europe is a crucial factor that will continue to exist this year. The countries in Europe that will be affected the most are Germany, Sweden, Hungary, Austria and Italy. The short-term economic outcome of increasing migration drift will relatively have increase GDP growth in Germany and Sweden caused by temporary increase in spending funds for the society. The outcome of increasing population is certain in the long-term, decreasing the pressure of growing population.

Jingqian Zhang