Prospects for the Global Economy

The Institute of Management and Leadership Development (IMLD) and the Centre for Economic Studies (CES) parked under the Faculty of Business and Finance (FBF) jointly organised a talk titled “Prospects for the Global Economy” on 1 November 2017 at UTAR Kampar Campus.

Dr Tanweer delivering his talk

Delivered by the Director of Global Public Policy and Economics at the Thrivent Financial in the US, Dr Tanweer Akram, the talk was focused on the divergence in the performances of the major advanced economies and its emerging markets as well as the challenges ahead for the global economy.

Dr Tanweer developed the firm’s global macroeconomic outlook and identified the risks to the global economy. He was also responsible for developing the firm’s views on international regulatory issues related to the financial services industry, particularly on those topics that pertain to the mutual and cooperative insurance industry.

A group photograph to mark the end of the talk

Also present at the talk were IMLD Director Prof Dr Cheng Ming Yu, FBF Dean Dr Au Yong Hui Nee, Acting CES Chairperson Dr Go You How, FBF lecturers, UTAR staff and students. Attended by more than 150 students mainly from FBF, the participants were also enlightened on aspects such as interest rates in advanced countries, the world economy as well as its downside and upside risks.

Dr Tanweer explained, “The global economy is projected to expand at a moderate pace this year and the next, but below the pace prior to the Global Financial Crisis. Monetary policy in advanced countries is likely to diverge, as the Federal Reserve gradually tightens and begins normalisation. Inflationary pressures are subdued except in the UK. Long-term interest rates are likely to stay low and rise only moderately for various reasons despite somewhat tighter monetary policy in the US.”

He added, “In the aspect of emerging markets, there is a divergence in the performances of key emerging markets. However, China has managed to sustain growth due to the continued rise in leverage, fiscal stimulus and strong effective domestic demand rising. Therefore, rebalancing will occur rather slowly.”

He also explained the risks and challenges of the global economy. He said, “Despite the ongoing moderate recovery, risks to the global economy are still tilted to the downside. There are two main long-term challenges. One of this is the demographic change in both advanced countries and emerging markets.  Another of this is global warming.”

The talk ended with an interactive Q&A session and followed by a group photograph.

Prof Cheng (left) presenting a token of appreciation to Dr Tanweer