Counter-intuitively, the world may be entering a period of heightened anxiety as the global financial crisis looms.
While the overall economy remains fragile, the economic outlook has been more positive than the one in 2014, and economic growth remains on track.
The chart below shows a global economy that has experienced some of the strongest growth in recent years, albeit at a lower rate than in the past.
In fact, the average annual growth rate in the first quarter of 2019 was the fastest since the global recession of 2008-09.
While some people attribute the current surge in optimism to a number of factors, including the fact that the Fed’s $85 billion stimulus package was approved unanimously by Congress, some experts also attribute it to the rising level of optimism around the world.
For example, a survey by Oxford Economics found that in 2019, a third of Americans said they expect their country to be better off in five years than it is now.
And, according to the World Economic Forum, the US has overtaken China as the world’s most indebted country, with debt topping $20 trillion.
The Federal Reserve, however, has signaled that it will not raise interest rates for the foreseeable future, saying that it wants to maintain the inflation target of 2 percent.
Moreover, a majority of Americans believe that the economy will be stronger in 2035, according a recent Pew Research Center poll, while a majority say that it is going to get worse in 2055.
A few other key findings: A majority of people say that the global economic crisis has had a negative impact on their financial situation, while most people say the economy has improved.
Only 13 percent of people said the global situation is worse than it was before the crisis, compared to 60 percent in 2018.
More people believe that their families will be financially better in the future than in recent decades, although there are differences across racial and ethnic groups.
Among African Americans, only 40 percent expect their families to be financially worse in the near future, compared with 66 percent in the 1960s.
Overall, more people are worried about their finances than ever before.
Nearly three-quarters of Americans surveyed in the poll said that the financial crisis has caused them more anxiety than they would have had they not been financially impacted by the crisis.
The majority of the population, however.
are more worried about the future.
“The world is on the verge of a crisis, and the global public is starting to feel a sense of urgency about it,” David Rosenberg, a research professor at the University of Texas, said in a press release.
“The question is how much will the public react to this in a way that makes it seem like a genuine problem?”
A lot is riding on the future of the economy, according in the latest Gallup poll.
According to the poll, only 35 percent of Americans expect the economy to grow at an annual rate of 4 percent or faster over the next five years, with the majority of those optimistic about the economy.
Although the economy is still fragile, some Americans are starting to view the current global financial situation as a temporary aberration.
In 2019, nearly two-thirds of Americans who believe the global crisis has been temporary believed that the economic situation is better now than it has been in the recent past.
More than one-third of Americans are optimistic about their financial future, and just over one-in-ten believe the economy may be better in five or 10 years than in today.
Some of the most optimistic people, like former Fed Chairman Ben Bernanke, see the global recovery as a long-term project that can be completed in the next decade or two.
And some people are starting the countdown for the next round of Fed rate hikes.
In a speech at the Brookings Institution on Thursday, Fed Chair Janet Yellen said that she expects to raise rates in 2019.
Meanwhile, many economists say that inflation will likely remain subdued for the rest of the decade, with only a small increase in the price of oil expected this year.
What’s your take on the new chart?
Do you think the economy continues to grow, or do you see it slowing down?
Let us know in the comments below.
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