2016 Global Economy; 6 Major Factors
The referendum on Brexit
The United Kingdom European Union membership referendum is scheduled to take place before the end of 2017. Membership of the European Union has been a controversial issue in the United Kingdom since the UK joined the then European Economic Community in 1973. This act might result in unexpected events in the economy of UK.
Those in favor of a British withdrawal from the European Union sometimes shortened as Brexit argue that outside the EU, the UK would be better able to better control immigration, better positioned to conduct its own trade negotiations, and freed from what they believe to be unnecessary EU regulations and bureaucracy. Those in favor of remaining in the EU argue that leaving the EU would risk the UK's prosperity, diminish its influence over world affairs, and result in trade barriers between the UK and the EU.
Russia’s role in the world
Russia has been one among the most powerful countries in the world after World War II. It has been a declining economy over the years but it might be the major political factor which will contribute to the financial uncertainty at a global level. By the end of 2015 President Vladimir Putin has repositioned them in to the world map with their interventions in the conflicts in Syria, Iraq and eastern Ukraine.
As per the current scenario, Russia might seem like a weakening power in a long run with excessive dependence on natural resources rather than productivity and innovations, but they still remind us that in a short run, they are capable of exploiting any neighboring country that shows weakness.
