Wednesday, 31 May 2017

World economy balance

     The global economy is being threatened by the risk of return to scenarios of recession aggravated by the emergence of protectionist measures in the First World countries, especially after the arrival in the US of Donald Trump.

     China is immersed in an economic crisis of identity by having to implement a wide battery of structural reforms in its financial systems. Communism has led this nation to limitations in international financial integration, to isolation and control of the internal state apparatus. As well as an inefficient allocation of economic resources caused by public paternalism and an insufficient level of development of distribution, marketing, and sales networks.     

 Respect to Latin America and the Caribbean, the contraction of world commodity demand would already be causing the strangulation of its exports and the generalized depreciation of its currencies due to the strength of the dollar, which will result in increases in production costs, Loss of competitiveness, runaway inflation rates and spectacular increases in Overseas Debt. On the other hand, in countries like Venezuela, Argentina, Brazil, Russia and countries of Africa has seen an economic collapse and in other countries like China and USA, the economists warn that they can present an economic retention that can take control of the world economy.

     However, the world economy has presented quite positive figures and growth rates this year. The implementation and use of new development technologies in the economic field have allowed many companies to overcome the crisis and face the world despite the difficulties. Bitcoin exchanges, transfers with people in other parts of the world are one of the advantages that the world presents today to acquire economic stability. 

Countries like India, Spain, and Japan have implemented the use of cryptocurrencies in their means of payment and have obtained good results with them. Even in Japan, the possibility of implementing this type of currency as local currency is being studied thanks to the acceptance it has had. Digital currency is a clear picture of a global financial change. In the coming years, it may be possible to maintain a more stabilized economy with low levels of inflation thanks to the development and implementation of cryptocurrencies.

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