WHAT IS GOING TO HAPPEN IN 2017 IN ECONOMY AND SHIPPING

INDUSTRY?

Hazel CáceresEvelyn QuezadaXiomara Moya Grade: 10

1. The U.S. Economy Will Boom Then Bust

The Federal Reserve predicts economic growth, will be between 2.0 percent and 2.4 percent each year until 2018. Donald Trump promised to boost growth to 4 percent.  His supporters felt they hadn't regained the good jobs they lost during the recession.

How It AffectsA 4 percent growth rate will set off a dangerous boom and bust cycle. That means a recession could hit by 2018 or later.

2. New Policies and Laws to China

Donald Trump can launch some of the most controversial measures he has promised, such as the creation of new tariffs for Chinese products where he wants to impose heavy tariffs of 45% and 35% to favor local products.

How It Affects. It will affect the relationships between USA and China.

3. The Federal Debt GrowsThe  U.S. debt will reach $20 trillion in 2017. It had remained stable after sequestration kicked in. That required a mandatory 10 percent Federal budget cut through 2021.

How It Affects You Disagreements over how to reduce the debt means a debt crisis every time the debt ceiling needs to be raised. Long-term, balancing the budget means spending cuts, since Trump has promised to cut taxes.  

Inflation is controlledThe most important role of the Fed is

managing public expectations of inflation. Once the public expects

inflation, it becomes a self-fulfilling prophecy.

How It Affects You Core inflation will remain at or under 2

percent. Food prices may rise temporarily since they follow volatile oil

and gas prices. But the cost of living will remain about where it is today. 

Health care costs escalate as Trumpcare replaces Obamacare

Trump has promised to repeal and replace Obamacare. Trumpcare keeps young adults

on their parents' plans, and insures those with pre-existing conditions.

How It Affects YouHealth care will immediately become more

expensive for those not on company insurance plans. 

Low-income families without insurance would return to using the hospital emergency room

as their primary care physicians. That will make health care more expensive for

everyone.

CONTAINER SHIP FLEET GROWTH EXPECTED TO ACCELERATE IN 2017

• The global container ship fleet will grow around 3.1 percent in 2017, a level of growth faster than 2016, and one that may or may not increase the gap between container shipping demand and supply, according to shipowner association Bimco.

SHIPPING COMPANY

• The container shipping industry has fallen into periods of overcapacity and low ship utilization, it has been a steep decline in its tariffs given the investment that shipping companies make in larger and larger vessels in the quest to reduce their Operating costs And, by 2017, the trend will continue, said Vincent Clerc, Commercial Director of Maersk Line.

SOURCES

• http://www.mundomaritimo.cl/noticias/el-destino-de-las-alianzas-navieras-para-el-2017

• http://cincodias.com/cincodias/2016/11/11/mercados/1478883904_957047.html

• http://www.bbc.com/mundo/noticias-internacional-38525795• http://noticias.entravision.com/2016/06/26/inauguran-historica-ampliaci

on-del-canal-de-panama/• https://www.thebalance.com/top-economic-predictions-for-the-next-10-

years-3305699• http://www.joc.com/maritime-news/container-lines/container-ship-fleet-

growth-expected-accelerate-2017_20170103.html• http://www.mundomaritimo.cl/noticias/el-destino-de-las-alianzas-navier

as-para-el-2017• http://cincodias.com/cincodias/2016/11/11/mercados/1478883904_957

047.html• http://www.bbc.com/mundo/noticias-internacional-38525795