The rapid decrease in oil prices and swift changes in exchange rates with the enhanced value of the US dollar the consequent weakening of other currencies are a few examples of financial factors that affect consumers globally.
In the United States, the economy is thriving, but in other countries, things are not the same. Unavoidably, the economy in China and its consumer market are climbing up. Many experts believe that in a few years, China will be the number one consumer market in the world.
Considering the world financial factors and current trends, here you can find some of the world’s best consumer markets ranked according to the UNSD (United Nations Statistics Division).
The United States of America: The US consumer market is a huge 29% of the World Market
According to the Kiplinger Magazine report, invigorated consumer spending and also rise in home building will increase the GDP in the second quarter. The dollar getting stronger, and making imported services and goods cheaper for business and consumers, it is also preventing exports that are considered as a long-lasting yank on growth.
Consumers are thrilled by the accessibility of lower energy prices and more jobs, which means having more money in their pockets. Spending by consumers in the 4th quarter is improving since 2014 and grew the fastest rate in eight years. Also, with a decrease in the unemployment rate, it is further increasing the insight of economic security.
Japan: Japanese Consumers serving 8.51% of the World Consumer Market
Though it is the largest consumer market in the Asia Pacific and the second biggest consumer market in the world, the Japanese consumer market is exemplified as slow growth and cautious consumers. The businesses stay cautious and the government of Japan is putting more efforts to strengthen the economy in Japan. Some of the government initiatives have worked, and the economy got out from technical downturn in Q4 with 2.2% expanding in GDP over the earlier quarter.
However, the return initiated an expansion in household demand and an enhancement in the external sector, the choice to ward off the planned second sales-tax increase and decrease in oil prices also played an important role. The most recent details show that the positive thrust carried into the first quarter made the PMI manufacturing stayed in expansion process in February and consumer response hit a 4-month high in January
Germany: Germany Consumers serving 5.29% of the World Consumer Market.
The German financial positions are in good shape. The country raised its estimate for financial growth for this year predicted earlier with record high employment levels and tough expenditure that has mounted from lower oil prices.
The ministry of economics improved its estimate for financial growth this year to 1.5 percent from a previous estimation of 1.3 percent, as per its yearly report. The economy increased by 1.5 percent last year.
According to the WSJ (Wall Street Journal), the higher prediction was greatly expected because forecasters think that the decrease of both euro and the oil prices will give a growth incentive to Europe’s largest financial system.