The Global Economy is Generally Performing Well, Says Panel at Quinnipiac University's G.A.M.E. VIII Forum in New York

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Mar 23, 2018, 11:45 ET

NEW YORK, March 23, 2018 /PRNewswire-USNewswire/ -- The "Global Economy" panel on the first day of Quinnipiac University's eighth annual Global Asset Management Education (G.A.M.E.) Forum on March 22 in New York agreed that the world's markets are generally faring quite well, thanks to higher commodity prices and an uptick in wages, but complicating factors make the future less than certain.

Emanuella Enenajor, a director and portfolio manager at BlackRock, the world's largest asset manager, pointed to the proliferation of the Internet—not just in developed countries, but globally—in disrupting business as usual. For instance, universities offering free courses online are reaching receptive audiences around the world.

She added that pricing is affected when consumers, shopping in a store, can instantly find the same product available (usually cheaper) at online sites. This "radical price transparency" is having an impact on corporate sales, she said.

John Silvia, managing director and chief economist at Wells Fargo Securities, said the world is moving towards protectionism, but these efforts could backfire as the cost of importation increases. "In general, protectionism is negative for economic growth," he said.

Frances Donald, senior economist at Manulife Asset Management, said that U.S. manufacturing jobs peaked in 1940, and that future employment is likely to come from STEM disciplines. "The swing to protectionism won't last," she said, adding that friction over NAFTA means that some Canadian companies are waiting to make investment decisions.

Silvia also said that unemployment is very low, but wage gains vary widely by sector. "There's a mobility problem," he said. "Some workers are in the wrong place at the right time." The panelists agreed that the so-called "gig economy" seems to be working for some people, despite lower wages earned from sporadic employment.

Enenajor said she sees "some wobbles here and there" in the global economy, but on the whole "it's doing quite well." Inflation the panelists agreed, is an important concern.

Asked to say which countries are driving international growth, Enenajor chose the U.S., even though other countries have higher growth rates; Donald cited Japan, because women are joining the workforce; and Silvia picked Southeast Asia, which have experienced considerable labor force growth.

The interactive conference attracted 1,500 students, from 49 states and 54 foreign countries.

SOURCE Quinnipiac University