Global Economy Watch: The dollar, oil, China and the UK’s £1 trillion export challenge

The global economy is experiencing a potentially dangerous cocktail of a strong dollar, low oil prices and a continued slowdown in China. Each of these can be viewed as a downside risk for the emerging economies:

• In the US, the value of the dollar is higher than it has been at any time since 2006.
• Oil prices fell to bellow $30 per barrel in January and remain weak.
• China’s economic stresses can be seen in its financial market volatility and the rapid run down in its foreign exchange reserves.