When studying the world’s events, one can differentiate between political events, financial events, sporting events, and social events – but in actual fact, the most major events in the world span the spectrum widely.
This article takes a look specifically at key financial events that have taken place across this year and shows how they’ve dictated market forces and made world economies shift.
You’ll learn, from this article, that a key political decision can have a significant impact on the performance of an economy in the modern era.
US Government Shutdown
In the US, there have been a couple of damaging and long-lasting government shut-downs. 2019 started with such a shut-down, with President Trump fighting a cold war with the Democrats in the houses of government over the proposed Mexican Border Wall.
What turned into an icy stand-off also served to freeze the US economy slightly, with reported billions, if not trillions, lost to government inactivity, a lack of financial planning, and a total mismanagement of the state’s assets in this period of time. You can see how this affected the US economy simply by searching for the repercussions of the government shut-down on the internet.
Certainly the most damaging and destabilizing event to have taken place in the UK economy, with reverberations felt around the world, in 2019 is still Brexit. Though the UK voted to leave the EU in 2016, it’s now 2019, and the country has found itself unable to navigate through the current impasse towards something that helps recover the UK economy.
By scrolling and clicking through the useful IG political timeline, you can see just how the different events that comprise Brexit have slowly made the pound weaker against both the dollar and the euro. You’ll also see a decline in the UK economy at key moments in the Brexit journey – a journey that is still wildly unpredictable.
Scrapping the Iranian Nuclear Deal
Worldwide, spectators might have seen the scrapping of the nuclear deal between the US and Iran as a mere political play; something that punitively punishes the Middle Eastern country for not holding true to its promises. In actuality, it’s the nuclear deal that’s the key cornerstone of any Arab and Persian economic bounce that can seriously help or hamper the economies of this part of the world.
Without the lifted sanctions and trade support, Iran’s economy is back to a slow crawl, with thousands of businesses across the globe experiencing the after-shock of Trump’s move.
The plight of the Greeks in modern-day Europe is truly heart-wrenching. With an economy that threatened to suck in Europe’s whole financial system, they have a number of large bail-outs from Europe and the IMF in recent years, designed in part to stimulate the nation’s economy.
The government, meanwhile, was unable to plan for a more stable future in Greece. 2019’s Greek elections may just have changed that if the markets are anything to go by. The center-right administration promises to be business-friendly, giving some confidence to investors in the Greek economic landscape.