For almost 50 years, the tiny Swiss town of Davos has hosted the global elite. Once a year, the rich and powerful jet into the Alpine retreat to attend the World Economic Forum. They take part in workshops, watch international leaders make speeches, and consume overpriced cups of tomato soup.
This year, the 1% are reportedly feeling rather upbeat. A decade after the devastating 2007-2008 financial crisis, every last one of the world’s major economies is finally posting positive economic growth figures. India’s economy is going gangbusters, with forecasts predicting 7.5% growth in 2017-2018, potentially outstripping China’s growth of 6.9% in 2017.
It’s not just the developing world that’s booming. France has posted its best economic figures since 2011; Spain (despite the crisis in Catalonia) is on track to be one of the strongest-performing European economies; Germany’s 2018 growth forecast has reportedly been revised upwards from 1.9% to 2.4%; Italy, despite a challenging political environment, has seen IMF forecasts revised up from 1.1% to 1.4%. Even Britain, shrugging off worst of the Brexit predictions, is chugging along nicely.
A decade after the 2007-2008 financial crisis, is the world economy finally back on track? Can this growth be sustained? Some economists are warning that high levels of global debt are a serious concern, and point to parallels with the situation just before the financial crisis a decade ago.
Others point with alarm to growing levels of inequality. The charity Oxfam has been campaigning against the so-called “inequality crisis”, arguing that 1% of the world’s population took over 80% of the world’s wealth in 2017. How long can this trend continue before it leads to serious political instability?
Ten years after the financial crisis, do you feel safer? Has the global economy finally recovered? Let us know your thoughts and comments in the form below and we’ll take them to policymakers and experts for their reactions!