SMM3, June 6: 2018 has been a challenging year, with economies not performing very well. Here is how GDP grew in 2018 in the world's top eight economies.
It's tragic! Among them, China's GDP growth rate reached its lowest level since 1990, Germany's GDP growth rate reached its lowest level since 2014, Britain's GDP growth rate reached its lowest level since 2012, Italy's economy fell into a technical recession, Japan continued to live, and the US economy was a flash in the pan. On the contrary, India, GDP growth rate ranked first in the world! This is the trend of GDP in Germany in the past five years.
This is the trend of GDP in France in the past five years.
This is Italy.
After reading it, you should know how miserable the European economy is! How bad is the economic downturn in Europe in 2018!
What is the problem in Europe? High welfare, aging, lack of innovation, excessive borrowing. High welfare is undoubtedly the first hand, no matter how advanced productivity, no matter how efficient can not afford the European welfare system, from the cradle to the grave, only one welfare. If Europe wants to get out of the recession, it depends on whether it has the determination to abandon the high welfare system and whether it can bear the pain of monetary tightening. If it continues to expand monetary policy and rely on borrowing, it must be repaid. There is no free lunch.
This is the trend of GDP in the United States in the past five years, which is relatively normal.
What is the problem in America? It's also a debt problem. At present, the US government has a debt of more than US $22 trillion, more than the one-year GDP of the United States! I can't afford it, and I don't want to pay it back. When I'm out of money, Congress allocates money, pushing up the debt ceiling, day by day. This is the result of years of militarism in the United States.
China's problem is debt and excess capacity. However, the potential for China's economic growth is endless. With the continuous improvement of the quality of China's labor force in the future, as China continues to promote reform and opening up, the dividend of reform will continue to be released, and labor productivity will continue to improve. I believe that as long as China adheres to the road of reform, it will be safe to maintain a relatively high growth rate for many more years in the future.