Major world economies have registered a remarkable growth in their economies during the first quarter of 2017.
According to a market report released by the real estate company, Cytonn Investments Ltd, China, the US and the Eurozone witnessed a growth in their economies by 6.9, 1.4 and 1.9 percent respectively in 2017 from 6.7, 1.1 and 0.5 percent at the same period in 2016.
According to the report, the commodities in the three markets saw an increase despite a drop in the prices of oil from 52.6 US Dollars per barrel to 49.9 US Dollars per barrel as a result of increased oil production in US, Nigeria and Libya.
During the period, the US Fed raised the Federal Funds Rate by 25 bps to the range of 1.00% – 1.25% in June. This was also due to the decline in unemployment rate to 4.3 percent from 4.5 percent in May with the inflation rate in US moving marginally below 2 percent target to 1.9 percent.
The Eurozone, on the other hand, expanded 1.9 percent during the first quarter of 2017 from 0.5 percent in 2016 with Germany, Spain and Italy experiencing a growth while France witnessing a slow growth. The unemployment rate in the Eurozone has dropped to 9.3 percent from 9.6 percent.
The Chinese Economy grew by 6.9 percent during the first quarter of 2017 driven by:
i) Pick-up in the pace of industrial revolution
ii) Increase in private consumption
iii) Increase in the investment in the infrastructural sector.
The Chinese Government, however, expects the economy to slow down to 6.5 percent this year from 6.7 percent in 2016 due to the planned reforms scheduled to take place this year to help deal with the county’s build-up debt.
(Information from extracted from Cytonn Investments Limited Report)