2016 has brought self-inflicted wounds to great economies

Economy Jamie Simon
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Three from the world’s top ten economies are finishing this year worse than they started.

There is no one to blame themselves for the situation.

After two referendums and a currency experiment, 2017 brings a lot of uncertainty.

One of these troubled countries is Britain, who had quite a rough year. The first step towards failure was taken on June 23 when it decided to leave the European Union.

The global market was affected by the Brexit, shares being crushed. Although the markets recovered soon, Britain was left with a big currency problem.

The pound reached its lowest level in 30 years against the American dollar. Even if the situation calmed since then, it still lost about 18% of its value. This caused everyday goods’ prices to increase.

British may have to confront with breaking from its big trading partner and with companies leaving the country.

UK’s economy might reach a rough path in 2017 and could have the lowest expansion pace in seven years.

India has some issues of its own. The country has decided this year to ban the majority of its banknotes and therefore, damage its economy. On November 8, the Prime Minister announced that 500 rupee and 1000 notes aren’t going to be legal anymore and will be replaced with 500 rupee and 2000 rupee notes. The ban was going to fight tax evasion and counterfeit currency, but the opponents are unsure of the benefits that are coming from this.

Millions of people had to struggle to get the new money.

India, who had an amazing 7.3% growth rate, will deal with a dramatic fall.

Italy is the third country that is ending the year in a bad way. The Prime Minister proposed a series of reforms that were rejected by a vote on December 4 by the citizens. After the vote, the Prime Minister resigned.

The country has a huge debt of $2.34 trillion and got one more of $21 billion.