What is goning to happen in 2017 in the Economy and shipping industry?
1. WHAT IS GOING TO HAPPEN IN 2017
IN ECONOMY AND SHIPPING
INDUSTRY?
Hazel Cáceres
Evelyn Quezada
Xiomara Moya Grade: 10
2. 1. The U.S. Economy Will
Boom Then Bust
The Federal Reserve
predicts economic growth, will
be between 2.0 percent and 2.4
percent each year until 2018.
Donald Trump promised to
boost growth to 4 percent. His
supporters felt they hadn't
regained the good jobs they lost
during the recession.
How It Affects
A 4 percent growth rate will set
off a dangerous boom and bust
cycle. That means a recession
could hit by 2018 or later.
2. New Policies and
Laws to China
Donald Trump can launch
some of the most
controversial measures he
has promised, such as the
creation of new tariffs for
Chinese products where he
wants to impose heavy
tariffs of 45% and 35% to
favor local products.
How It Affects.
It will affect the relationships
between USA and China.
3. The Federal Debt Grows
The U.S. debt will
reach $20 trillion in 2017. It had
remained stable
after sequestration kicked in.
That required a mandatory 10
percent Federal budget cut
through 2021.
How It Affects You
Disagreements over how to
reduce the debt means a debt
crisis every time the debt
ceiling needs to be raised.
Long-term, balancing the
budget means spending cuts,
since Trump has promised to
cut taxes.
3. Inflation is controlled
The most important role of the Fed is
managing public expectations of inflation.
Once the public expects inflation, it becomes
a self-fulfilling prophecy.
How It Affects You
Core inflation will remain at or under 2
percent. Food prices may rise
temporarily since they follow volatile oil and
Health care costs escalate as Trumpcare replaces
Obamacare
Trump has promised to repeal and replace
Obamacare. Trumpcare keeps young adults on
their parents' plans, and insures those with pre-
existing conditions.
How It Affects You
Health care will immediately become more
expensive for those not on company insurance
plans.
4. CONTAINER SHIP FLEET GROWTH
EXPECTED TO ACCELERATE IN 2017
• The global container ship fleet
will grow around 3.1 percent in
2017, a level of growth faster
than 2016, and one that may or
may not increase the gap
between container shipping
demand and supply, according
to shipowner association
Bimco.
5. SHIPPING COMPANY
• The container shipping industry has
fallen into periods of overcapacity and
low ship utilization, it has been a steep
decline in its tariffs given the
investment that shipping companies
make in larger and larger vessels in the
quest to reduce their Operating costs
And, by 2017, the trend will continue,
said Vincent Clerc, Commercial Director
of Maersk Line.