LOW OIL PRICE FORCES ARAB COUNTRIES TO REFORM
Since 2014, oil producing countries in the Gulf region have had to adjust to low oil revenues, and the need for economic and social reforms is increasing. Saudi Arabia is pushing ahead with a plan of action that is likely to be at least partly copied by neighboring countries. The reforms will bring both risks and opportunities for the mechanical engineering industry. An analysis.
STATUS: IT'S COMPLICATED
In a few months, Europe might have to grant China the status of a market economy under international trade law. This might appear just a question of definition, but it has a big impact on the EU's options for protecting its industry against dumping from China.
NEW SALES RECORD IN GLOBAL MECHANICAL ENGINEERING
The demand for capital goods has seen little development in 2015. Still, global machine turnover has increased by 10 percent to the new record level of 2570 billion euros. The growth is palliated due to changes in exchange rates - in truth, there was a different development.
THE EU'S FIGHT FOR MODERN TRADE WITH MEXICO
These days seem to be tough for free trade fans. The trade agreement between Europe and the United States is in the center of a furious public debate. A contract already negotiated between the European Union (EU) and Canada is about to be in the spotlight again. EU representatives don't only have to fight for the best deals possible, but also against the large amount of skepticism at home. However, lawmakers in Brussels stick to the free trade agenda they so firmly believe in. Their latest target: a comprehensive trade agreement between Europe and Mexico.
GROWTH STRATEGIES, DIGITALIZATION AND INCREASING FLEXIBILITY
A shift in growth opportunities, changes due to digitalization and increasing flexibility are the three trends that will shape European mechanical engineering in the future. This is the result of the second mechanical engineering study published by management consultants McKinsey & Company and VDMA.
RUSSIA: FROM EXPORT MARKET TO PRODUCTION LOCATION?
Russia's economy is suffering from the falling oil price, with western sanctions inhibiting the country's economic development. The current magic catchphrase in Russia is import substitution. The state decreed build-up in Russia's own production capabilities is intended to trigger the long overdue structural transformation in the country’s economy. Can this succeed?
EUROPEAN ECONOMY: LACK OF MOVEMENT
The slowdown of the Chinese manufacturing sector and the recession in Russia and Brazil have had a dampening effect on the European economy, although all the signs point to a modest rise in GDP of 1.8 percent for the eurozone in 2016. In mechanical engineering, VDMA researchers predict price-adjusted growth in turnover of 1 percent. But the situation in Europe remains fragile.