The global economy faces several challenges in 2017 that could slow growth. These include a modest recovery in commodity prices, tighter fiscal policies that may constrain growth, and central banks reaching the limits of monetary policy stimulus. Brexit and elections in European countries also introduce economic uncertainty. Additionally, a potential rise in protectionist policies under a new U.S. president poses a risk to investment and trade. Despite these challenges, the container shipping industry is expected to see growth of around 3.1% in 2017 as Asian countries supply more fuel efficient large vessels to meet demand.

1. LOGISTIC II
ECONOMY IN 2017
MEMBERS:
MICHELLE SIGUENZA
ANDREA SOLORZANO
GHISLAINE ESPINOSA
KELLY TANDAZO
ROXANA CORREA
MADELYNE SOLEDISPA
MARILYN MARTINEZ
JENNIFER MEDRANDA
GRADE :10

2. The global economy is in the
midst of a decade long slow
growth environment
characterized by an
imminent productivity
growth crisis.
The looming labor shortage
in mature economies and
skill deficiencies in emerging
markets will add further
challenges to global
economic prospect.
Global growth lacks demand
drivers and potential output
is likely shrinking while
uncertainty is increasing.
What is the growth outlook
for major economies and
core regions in 2017 and
beyond?
The Conference Board Global
Economic Outlook will examine
the role of increasing
uncertainty and risk factors for
investment and growth in the
medium and longer term in
different parts of the world.
It will also analyze if the
information and
communication technology
sector growth will come to
rescue the slowing global
economy in the next decade.

3. The 5 Biggest Challenges the Global Economy Faces in 2017
Commodities recovery reverses
Having already annihilated economic growth in Brazil, Russia, Nigeria, and other previously considered rising star
economies in 2016, commodity prices will only see a modest recovery in 2017, according to the IMF’s October report.
Tighter fiscal policy weighs
The IMF’s October report predicted fiscal policies in developed economies would tighten even further in 2017, despite
calls for increased government spending to drive growth.
Monetary policy reaches its limits
A phenomenon arguably already unfolding as central banks reach the limits of the expansionary monetary policy tools at
their disposal, 2017 may be the year some have to face the music.
Brexit and European instability
With national elections set for France, Germany and the Netherlands in 2017, each of which feature a far right candidate,
there is potential for economically damaging protectionist policies in the Eurozone.
A protectionist president
The International Monetary Fund has warned that rising populism and protectionism have correlated with stagnating
economic growth. In its latest “World Economic Outlook,”

4. SHIPPING BUSINESS PREDICTION FOR
2017
The world economy will
grow by 2.8% next year,
an improvement with
respect to 2016, but the
sixth consecutive year
that global economic
activity remains below
3%.
The main growth in
shipbuilding will come
from Asia-Pacific
countries. These nations
are well positioned to
supply ultra-large vessels,
which shipping companies
are increasingly
demanding for their fuel
efficiency and economies
of scale.
On-Demand
economy is driving
the need for
transportation
operation.

5. The global container
ship fleet will grow
around 3.1 percent in
2017, (compared to
1.1%) a level of growth
faster than 2016
The number of new
vessels coming into
service, comparing to
2016, is much less in
2017.

6. • Three of Japan’s largest container ship lines, h
ave agreed to establish a
new joint venture company by approximately
July 2017.
Kawasaki
Kisen Kaisha,
Ltd. (“K” Line)
Mitsui O.S.K.
Lines Ltd.
(MOL)
Nippon Yusen
Kabushiki
Kaisha (NYK

7. http://www.joc.com/maritime-news/container-lines/container-ship-fleet-
growth-expected-accelerate-2017_20170103.html
http://www.lloydsloadinglist.com/freight-directory/news/Container-ship-
net-fleet-growth-to-be-stronger-in-2017---
BIMCO/68338.htm#.WHLd2vN_Okp
http://www.morethanshipping.com/container-shipping-summary-2016-
brief-expectations-2017/ (MTS LOGISTICS)
http://blog.chrobinson.com/global-transportation/3-major-japanese-
container-shipping-lines-to-consolidate-by-july-2017/
SOURCES
https://www.conference-board.org/economic-outlook2017/
http://nationalinterest.org/feature/the-5-biggest-challenges-the-global-
economy-faces-2017-18144
http://nationalinterest.org/feature/the-5-biggest-challenges-the-global-
economy-faces-2017-18144