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What Are the Current Financial Warning Signs Around the World?

Stock market uncertainty across the planet and contracting economies have got many investors worried about the future. It certainly isn’t all doom and gloom but what are the main financial warning signs being seen in different countries just now?

The UK – Brexit Breeds Uncertainty

The big issue that affects the British economy is with Brexit. Uncertainty over how Britain will leave the EU, and the effect it will cause, have led to the Pound tumbling. Another worrying factor here is the fact that the economy shrunk by 0.2% between April and June of this year. A no-deal Brexit could lead to a shock that shakes the country and the rest of the world.

More positively, employment rates are rising and wages are on the way up too. For now, the future of the UK economy really seems to hinge on what happens with Brexit at the end of October. After this date, the outlook should be a lot clearer and hopefully more positive as well.

The US – A Nervous Stock Market

Mixed news from across the Atlantic shows that there are some major concerns, as well as a few positive trends. The on-going trade war with China, interest rate fears and a nervous stock market are among the big worries in the US right now. It is the trade war with the Asian giant that raise most fears about the future.

There is good news as well, though. Employment rates are as high as they have been in decades, and the International Monetary Fund believe that this will be fastest growing G7 economy in 2019. This all leads many experts to claim that the US economy is going to be just fine.

China – Industrial Production Levels Fall Away

News stories and images of the disturbances in Hong Kong have put a serious debt in China’s overseas reputation. Added to this, their trade wars with the US and a big drop in industrial production levels have taken a toll on the Chinese economy.

Yet, we can also see that the country’s economy is officially growing at an annual rate of more than 6%. A possible reason for the current slowdown is that the Chinese authorities are focused on a slower but steadier growth than has been the case in recent years.

Germany – Exports Are Falling

The tremendous exportation rate from Germany has slumped lately, as demand around the planet for the likes of their machinery and cars has fallen notably. The country’s GDP declined by 0.1% earlier this year, as confidence levels in the business world sank to levels not seen in over a decade.

Better news for the Germany economy is that the Government has cash reserves following a long period of budget surpluses. The country’s businesses also have low debt levels, which should help them to get through any tough time. Having said that, difficult economic times often lead to an increase in international commercial debt collection activities, as companies look to recover their loans.

Apart from those countries listed, the likes of Italy, Argentina and Brazil have all been giving off financial warning signs too. Financial analysts are keeping a close eye on all of these countries, to see whether the risk of a global recession is growing or not.