GLOBILITY® - September 12, 2016 

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Britain Faces Long Road to Trade Deals
With other countries reluctant to get involved in detailed discussions until Britain's future ties with the European Union are clear, and a lack of negotiators in London ready to begin talks, any firm deals could be years away. While the government says it can do the groundwork, Britain cannot formally sign trade agreements until it leaves the EU, and European Commission President Jean-Claude Juncker has said EU member states should not even negotiate deals while still part of the bloc. Read on about the future of trade deals in Britain.  

Spain’s Economy Defying Political Impasse, but Growth Expected to Lose Steam
Spain's economy, which has expanded for three years, grew strongly in the second quarter despite a deteriorating political gridlock, with continued robust consumer spending and a rising demand for exports. An economic recovery has sustained energy through eight months without a functioning government; in fact, the country continued to record one of the fastest growth rates in the Eurozone this year. But economists expect growth to slow in 2017 as political uncertainty begins to strain investments. Click through to the full article for more information.






The Price for China's High Growth Could Be Slow Growth Everywhere Else
China’s economy is experiencing considerable difficulties, particularly in the smokestack industries. But China has many sectors that continue to show strong growth, and the overall growth rate is still above 6%, which is high by global standards. However, China’s overall debt levels have been rising fast for years and are now much higher than comparable developing countries; in fact, debts are now comparable to slower growing developed economies like the UK and the U.S. If rising indebtedness is the main thing driving the growth rate in China, and this indebtedness is driving China’s overcapacity, then this growth could be a strain on worldwide development. Access the article for additional insight.  

Air Pollution Cost India 8.5% Of Its Economy in 2013, Says World Bank 
The rising air pollution in India is a significant health concern but has an even larger implication on the economy, says a World Bank and Institute for Health Metrics and Evaluation study. The study has found that premature deaths due to air pollution in 2013 cost the global economy about $225 billion in lost labor income, or about $5.11 trillion in welfare losses worldwide. That is roughly equal to the gross domestic product (GDP) of India, Canada, and Mexico combined. India's labor losses due to air pollution stood at about $55.39 billion, or about 0.84% of its GDP. China followed close behind with $44.56 billion, or 0.28% of its GDP, lost under the same conditions. Read more about the impact of air pollution on India’s workforce.

Sponsored Content

Driving Better Results from Your Mobility Program: Direct, Blended or Bundled? Why Your HHG Moving Model Matters
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Reconnecting Cuba
Cuba is not the average frontier market, and its government is openly ambivalent about how much to embrace foreign companies. Like China when it first allowed foreign direct investment in the 1980s and 1990s, Cuba requires that outside companies do business through joint ventures with local companies.  For business leaders who have decided to enter Cuba soon, the economy looks as though it has nowhere to go but up. Find out more about Cuba's economic challenges and prospects.

Startups in Latin America: A New Engine for Growth?
The once-immature startup market in LATAM has grown through a blend of new public and private injections of capital, targeted infrastructure projects and savvy entrepreneurship. The resulting business arena is opportunity-rich. How can this expanding business sector be leveraged for sustainable economic growth? See more on how startups are fueling LATAM growth.

General Interest

Fewer Women in the Workforce Will Cost the Global Economy US$28 Trillion Over Next 10 Years
The worldwide labor force participation rate for men is around 77%, compared with 50% for women, says global management consultant McKinsey & Company. If this gap were eliminated, the company notes, there would be a US$28 trillion boost to the world economy. To further demonstrate the cost of the gap, McKinsey also regionalizes the information, reviewing the country in each region with the narrowest gap between men and women in the workforce. They note that if every country in each region matched the performance of the country in the region with the narrowest gap by 2025, the boost would be US$12 trillion – or 11% of GDP. For example, China’s GDP would be US$2.5 trillion larger, North America’s would be US$3.1 trillion, and South East Asia’s economies would, in aggregate, be US$900 billion richer. Find out more about economic advantages to having more women in the global workforce.

G20 Leaders Vow to Continue Support for Global Tax Cooperation
At the G20 Summit in Hangzhou, China in early September, leaders at the meeting said that monetary policy will continue to support economic activity and ensure price stability, but policy alone cannot lead to balanced growth. India, China, the U.S. and other G20 leaders pledged to continue supporting international tax co-operation to achieve a globally fair and modern international tax system, foster growth and refrain from competitive devaluation of currencies. Read about the G20 Summit and its final communiqué.