Economists believe that the global economy will rise in the next few months which has been buoyed by interest rate cuts by the central banks including the Federal Reserve and the rising hopes of talks between the US and China to end the trade war and lower the tariffs set by the government in both countries and find out a solution to boost economic ties.
In the last decade, the ongoing dispute and trade war between the US, China, and the European Union has seen tariffs rise and new tariffs were set to decrease exports from foreign countries which have hindered the growth of the worldwide economy and trade.
While a permanent solution could take time but the recent developments have at least brought back some confidence in the investors and business houses that the worst might just be over. Even a few months ago the situation seemed as if the world was barrelling itself towards an economic depression with markets being down due to the confusion and the lack of trust of the investors. Small to medium-sized business which relied on exports or importing material from other countries had seen their production rates dwindle downwards because of trade disputes among some of the countries.
The companies in the US had done well in the Q2 and the industry production also went up by fair margin. The housing sector which was down also picked up in the last half of Q2. The stock markets in the US and Asia have shown signs of improvement which has been strengthened by the rate cuts of the central banks and the rise in the profits of the companies in the Q2 results.
The share markets are expected to rise further as the trade talks between President Xi Jinping and Donald Trump could happen soon.