are there downside risks to global economic growth when compared to your own countriesdomestic economic growth

Question

i thought if your when your own economy was slower growing than the global economy then this would devalue the currency locally. are there any other risks?

Answer 1

If I understand you, you are asking: "if the growth of the world economy increases and becomes faster than that of your domestic economy, can it ever do any harm?" The only risk I an think of there is of inflation, not because of the realtive growth but simply because faster growth in the world economy increases inflationary pressures in the world economy due to capacity constraints (aka supply bottlenecks).

If anything, slower growth at home than in the world tends to be associated with a RISE in the value of the local currency (against the US$ or the SDR). A good real-life example was sterling between October 1976 and January 1981. Especially the first year of that period. The direct cause of this is that low domestic growth means low growth in demand for imports, whereas higher world growth boosts exports. So the current account balance improves. Maybe also partly because low domestic growth is often accompanied by high interest rates.

Answer 2

Unfortunately, the effects of global and domestic growth are complicated, and depend very much on the specifics of the situation. In generally growth in the rest of the world is good, as it might increase the demand for goods from your country, which in turn could stimulate your economy.

Answer 3

Neither the atmosphere nor economic boost ought to be put in front of the different. we at the instant are not conversing approximately oil and water, interior the experience that they can't mixture. in certainty, Sustainable boost has been used by way of industry for some years. The evidence is interior the pudding, that sustainable boost works! Lumber companies now prefer to diminish sensibly, extremely of sparkling reducing a community. chosen bushes are decrease, jointly as others are left to strengthen, new ones are planted as against the felled bushes. this way, the lumber companies will continually have product to reap. This additionally minimizes, yet does no longer thoroughly get rid of abrasion of soil, or habitat loss. despite the fact that if, that's lots greater effective than the alternative... sparkling reducing. in certainty that people might desire to share this worldwide, we will leave a footprint no rely what we do. despite the fact that if, minimizing that footprint will leave the two us and the atmosphere in a greater robust condition. To think of that economics ought to be placed on the lower back burner is merely naive. without economic boost, how can you grow to be knowledgeable? commute? How will people study our worldwide, and grow to be greater effective stewards of the earth, if we are all out of a job and ravenous?? that's a provide and take dating that people have with the atmosphere. we'd desire to locate the spectacular stability between provide and take.