Saturday, March 5, 2016

What are the economic challenges of the next decade? –

To answer this question, ‘France Strategy’ launched its “17/27″ to inform citizens on the major challenges of the next presidential election but also those of the next decade

( – France Strategy, reflection and organization expert attached to the Prime Minister’s Office, has launched its “17/27″ which the goal is to shed light on “the challenges of the next presidential election,” but over the next decade by adopting a thematic approach …

the institution will therefore publish a dozen studies including on “the outlook for public finances”, “educational priorities”, “digital revolution” or “the employment policy and the labor market.” The first dossier published on Friday aims to “global growth than a decade to another” …

Rebound limited

It offers “a framing of the key points of the global macroeconomic environment, complemented by a presentation scenario for advanced economies, emerging markets and global growth. ” After a decade of low activity, the agency predicts a “limited rebound” in advanced economies. “The return to previous trends to 2008 should not be overestimated,” warns ‘Strategy France’.

Meanwhile, emerging, who shot the global economy over the past decade, could binding. Thus, China’s potential growth is expected to narrow to 5.5% in 2017 and be close to 4.5% in 2027, against a rate of 7.3% in 2014. The growth potential of Mexico, Brazil and Turkey is also expected to decrease. To take over, ‘Strategy France’ possibly cite India and Africa, which have yet, however, face significant barriers …

Numerous uncertainties

many uncertainties remain on the developments of the next decade: Should we expect a sustained decline in productivity and an extended low inflation in advanced economies? What will the reaction of emerging against the sharp slowdown of their economies? Added to this is the growing number of global conflicts and the rise of terrorism. Beyond the human tragedy, these situations have an impact on the global economy. These include increased spending to strengthen internal security, or the costs associated with managing the flow of migrants, besides of course the countries directly affected by these conflicts can develop their business.

Despite these uncertainties, ‘Strategy France considers that during the next decade, the results “will depend on the ability of economic policy to innovate to address these problems.” Some developments can already be anticipated such as the decline of some sectors (especially industry) and the development of other activities (digital, environment …).

Finally, the issue of sustainability of growth must be linked to the fair redistribution of resources. “It is even more complex than it needs to be thought at national level but also internationally, particularly in terms of taxation (both individuals and companies),” concludes the body …

  – © 2016


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