The other day, Stratfor released another quarterly prediction for the global geopolitical situation.
According to the report, the USA will try to settle the nuclear dispute with North Korea. Europe will be waiting for the results of the presidential election in France. Russia will dive even deeper into the local problems. The OPEC will extend the Vienna Accord aimed at cutting oil production.
Trade is expected to become one of the key issues in the American agenda over the mentioned period. To be more specific, Trump’s administration will try to explain to the Americans the newly-developed strategy to fight any currency manipulation abroad, which implies some trade regulation toughening and the reconsidering their attitude to the NAFTA. At the same time, Stratfor experts believe that Trump’s unclear stance will force America’s key trade partners seek tighter trade relations with other countries. However, some of them will retain their commitment to cooperating with the USA in the field of security and investments in order to avoid trade sanctions. China is expected to be one of such countries. China has been actively benefiting from its economic growth as well as the tensions between the USA and North Korea.
At the same time, they think that President Trump and his administration will do their best to implement at least secondary sanctions against North Korea. For that reason, the USA may provide South Korea with considerable military support to make China interfere with the conflict.
Russia and the Middle East
The American missile attack on a Syrian airbase aggravated the situation in Syria, increasing the risk of direct military clashes. Still, Stratfor experts believe that Moscow will be using the situation to urge Donald Trump for negotiations. Russia is unlikely to trust the USA and Europe anymore. Russian politicians will probably have to focus on numerous internal problems.
OPEC
Saudi Arabia and other OPEC members are expected to back oil production cuts in the region for 6 more months. If oil prices stabilize, Venezuela may well settle some of its urgent financial problems. However, Venezuela will still be facing a default in the second half of 2017.
European Union
European leaders my face some challenges threatening to undermine their status. At the same time, all eyes are on the results of the presidential election in France. The result will show whether there will be a Frexit referendum. Italy is another country thinking about quitting the EU. That’s why the results of the presidential election in France may decide the fate of the entire union. In the worst case scenario, Europe will face serious shocks, which will also affect global financial markets, Stratfor experts predict.
