Global macro

Global macroeconomics refers to the study of the macro linkages across the economies of the world. It deals with cross-country issues pertaining to international capital flows, global business cycles, global credit conditions, international sovereign debt, etc. In finance it refers to the strategy of (typically) hedge funds that make bets on global market events. Positions are often taken in anticipation of price, exchange rate, risk  and other adjustments — often precipitated by political events — on a macroeconomic level. It is very much tied to the overall economic and political standing of a country. Prime examples of a global macro hedge funds would be Bridgewater Associates and Soros Fund Management. George Soros’s most famous global macro position was in 1992 when he bet against the British pound, forcing it to abandon its ERM position, and which netted him over $1 billion.

Global macro viewpoint of the GCC

I was interviewed by TRENDS magazine on my view of the global economy for 2017:




“Uncertainty reigns” (Jan 26, 2017)

The big-picture global macro issues for the MENA region are:

  1. China’s growing position as the region’s dominant trade partner
  2. Coping with low oil price and preparing for end of oil era
  3. The need for economic diversification
  4. Improving human capital conditions
  5. Youth skills gap and unemployment
  6. Impact of end of near-zero interest rates by the US Federal Reserve