It is undeniable that a new calendar year has its own transformational effect on everyone: if only the start of a new year has the power to recalibrate world events to more optimistic trajectories. The year 2014 saw an avalanche of disasters, from wars in the Middle East, to the unrest in Ukraine, to the triple air disasters, to the resurgence of Ebola in Africa and the collapse of oil markets towards the end of the year.
In almost every global issue, 2014 has strained not just the wits of our leaders, but also the resources that were required to tackle them. Indeed, we can only wish that humanity’s problem-solving vigor does not fatigue itself in the year 2015. What then are we to expect for the year ahead?
On the economy front, the United States, still the world’s biggest economy (but not anymore in a few years’ time), is expected to slowly move out of its unemployment woes which in effect will help in improving its GDP. Economists are looking at 3% growth with unemployment going down to a modest 5.3%. They also predict a stronger dollar against the euro and the Japanese yen.
Economists also predict continued growth for China, but at a slower pace in the months ahead. As for Germany, the Eurozone’s economic powerhouse (and savior), its giant trade surplus will likely shrink this year. Already a legitimate and a functioning entity, the Eurasian Economic Union, a rival to the European Union, already came into effect on January 2, 2015. It comprises the initial countries of Russia, Kazakhstan, Kyrgyzstan, Armenia, and Belarus. Despite its potential competition with the EU, the new EAEU called for “start(ing) official contacts between the EU and the EAEU as soon as possible”.
For the rest of the world, most economists agree that the world is headed for a better economic outlook in 2015. For instance, the International Monetary Fund predicts the global economy to expand to 3.8% this year, compared to 3.3% in 2014. Such growth is the fastest since 2011, and the downward spiral of oil prices means businesses and consumers alike will have more money to spend on other things. On the energy side, economists predict still lower oil prices in 2015, thanks to continued oversupply and the reluctance of oil majors to cut production.
Political activity in major European countries like the UK, Greece, and Spain will see an interesting shakeup this year. Starting with Greece, concerns in Brussels will finally see the light (or dark) if a left-wing party challenges the present austerity measures and with it, bring back memories of a Greek exit from the Eurozone. At 24% unemployment, similar public sentiment in Spain will test the euro-wide policy of austerity in the coming Spanish local elections. In the UK, general elections will be held in May as well, where the dissolution of the present Parliament will likely take place, while political rivalries are expected to be ‘neck-and-neck.’
Another notable mention is the expiration of the United Nations Millennium Development Goals (MDGs) on December 31, 2015. Discussions as to what will replace it, along with which priorities should be set, are already underway, with some prominent leaders suggesting a focus on broadly the same issues for global development, while others suggest embarking on the newer UN Sustainable Development Goal (SDGs). Regardless of the global issues that will be focused on, the new goals will represent the most challenge to Ban Ki-moon and represent the most important legacy as he leaves the UN after his term ends in late 2016.