Global Economic Trends and Impacts

HOW IS THE GLOBAL ECONOMY CHANGING?
WHAT ARE THE IMPLICATIONS FOR THE FUTURE
OF MULTILATERALISM FROM

Table of Contents
INTRODUCTION...........................................................................................................................1
DISCUSSION..................................................................................................................................1
Global economy changes............................................................................................................1
Factors that alter the situation of global economy......................................................................4
Implications for future of multilateralism from the changes in global economy........................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The beginning of 2007 has changed the scenario of global economy. It has offered
conflicting picture of economic system which has created many challenges and opportunities for
the financial status of the countries (Stromquist and Monkman, 2014). Michael Spence has stated
that in the year 2007 economic crises situation were arisen, at that time many structural changes
has occurred which have altered economic state of nations. In such crises' situation, many
difficulties faced by the region, poor job opportunities, implementation of labour saving
technologies and globalization has changed the scenario of countries (Kelsey, 2015).
Current assignment will discuss the factors which are changing global economy
situations. Furthermore, implications of these changes for future of multilateralism will be
described in this assignment.
DISCUSSION
Global economy changes
After economic crises global economy condition has got down. People were not having
adequate job opportunities and it was very difficult for the population to survive their life. Over
the period of time economic has recovered. Over the past five years countries have grown by 5%
every year. GDP rate of world's largest countries have been changed a lot since 1980 to till now.
It is enjoying its growth performance (Kahler, 2013). Economy of US which is accounted almost
one third of world output has experienced its longest expansion.
After 2008 economy changes have been occurred globally. Economy changes are
determined by the living standards of the population. Over the period of time many technological
advancements have taken places which has increased job opportunities in the nations. It has
supported in improving per capita income of the people. This has supported in raising value of
economy globally (Pachauri and et.al, 2014). Earlier to 14th century there was substantial spike in
relation with income. National economy growth is calculated by output per unit of labour output,
percentage of working people. Over the period labour productivity has been increased.
Furthermore, technological advancement has supported in 80% improvement in long term
economy success (Bolt and Zanden, 2014).
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Illustration 1: Growth of world out 2013-2017
Source: (A World of Change, 2014)
After certain time in the year 2015 economy condition gets influenced again. Weak
aggregate demands, changes in oil prices, falling commodity prices were the major aspects
which has affected global economy to great extent. In the year 2016 it was projection of the
economist that economy will grow by 2.9% in 2016 and 3.2% in 2017 (Morrison, 2014).
It has been analysed that over the period of time annual percentage in respect to world
output has been changed a lot. In the year 2013 Output rate was 1.5% New Euro members have
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