New York - The world economy recently predicted will not grow too well until next year. Moody's Analytics Chief Economist Mark Zandi believes that the world economy is facing two major threats.
Two threats that could shake Zandi's global economic stability are the interest rates of the Fed and the slowdown in China's economy.
"My assumption is that China will be able to cope with the slowdown in its national economy, but if the economy slumps further, it will be difficult for the global economy to rebound, as well as the US economy," Zandi said as quoted by Reuters website on Monday (1/6/2015).
Shocks in China's industrial sector are predicted to disrupt the economy that began to stabilize lately.
Meanwhile, the US as the world's largest economy has contracted in the last three months of the year. The economic slowdown that occurred in the US caused a considerable snowfall earlier.
Even so, most economists predict the US economy will soon improve. The index of US purchasing managers this week also moved positively to show improvement in the US economy.
More important than all that data is the release of US employment data to be released this weekend. The employment data could be the Fed's policy direction in plans to raise interest rates this year.
Economists believe the US managed to absorb 225 thousand non-farm category workers throughout May that allowed the Fed to raise interest rates later this year.
"There are many concerns about global economic growth as many market participants are welcoming the better euro zone trend, knowing that the improvement could be a better growth locomotive," said ADM Investor Services strategist Marc Ostwald.
Two threats that could shake Zandi's global economic stability are the interest rates of the Fed and the slowdown in China's economy.
"My assumption is that China will be able to cope with the slowdown in its national economy, but if the economy slumps further, it will be difficult for the global economy to rebound, as well as the US economy," Zandi said as quoted by Reuters website on Monday (1/6/2015).
Shocks in China's industrial sector are predicted to disrupt the economy that began to stabilize lately.
Meanwhile, the US as the world's largest economy has contracted in the last three months of the year. The economic slowdown that occurred in the US caused a considerable snowfall earlier.
Even so, most economists predict the US economy will soon improve. The index of US purchasing managers this week also moved positively to show improvement in the US economy.
More important than all that data is the release of US employment data to be released this weekend. The employment data could be the Fed's policy direction in plans to raise interest rates this year.
Economists believe the US managed to absorb 225 thousand non-farm category workers throughout May that allowed the Fed to raise interest rates later this year.
"There are many concerns about global economic growth as many market participants are welcoming the better euro zone trend, knowing that the improvement could be a better growth locomotive," said ADM Investor Services strategist Marc Ostwald.
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