Quarterly Forecasts

2015 Third-Quarter Forecast

3 MINS READJul 8, 2015 | 09:30 GMT
Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large.

Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large.

(Milos Bicanski/Getty Images)

Overview

Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

Forecasts

Europe

To the west of Eurasia lays Europe, a region predisposed to division. It is surrounded on nearly all sides by islands and peninsulas that make it difficult for Europe to cohere. The northern half of the continent, moreover, sits on a plain whose short, meandering rivers tend to empower countries without forcing them to work with others. The southern half is situated on more mountainous terrain that has historically impeded the creation of strong, unified economies. As a result, Europe is a continent riven by pockets of distinct cultures whose differences are all too often irreconcilable.

Jul 8, 2015 | 01:35 GMT
Europe is a continent riven by pockets of distinct cultures whose differences are all too often irreconcilable.

Europe is a continent riven by pockets of distinct cultures whose differences are all too often irreconcilable.

section Highlights
  • The Eurogroup will be willing to offer only a vague, conditional promise of debt relief to Greece.
  • The arrival of migrants in Southern Europe by sea will continue to generate friction within the European Union.
  • Europe's slow and uneven economic recovery will continue this quarter. 
  • The Referendum Bill, whereby the United Kingdom will vote on whether to remain in the European Union, should ultimately pass.
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Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

Forecasts

Eurasia

Eurasia is the world’s most expansive region. It connects the East to the West, forming a land bridge that borders Europe, the Asia-Pacific, the Middle East and South Asia. Forming the borders of this massive tract of land are the Northern European Plain, the Carpathian Mountains, the Southern Caucasus Mountains, the Tien Shan Mountains and Siberia. At the heart of Eurasia is Russia, a country that throughout history has tried, to varying degrees of success, to extend its influence to Eurasia’s farthest reaches — a strategy meant to insulate it from outside powers. But this strategy necessarily creates conflict throughout Russia’s borderlands, putting Eurasia a near constant state of instability.

Jul 8, 2015 | 02:04 GMT
Eurasia connects the East to the West, forming a land bridge that borders Europe, the Asia-Pacific, the Middle East and South Asia.

Eurasia connects the East to the West, forming a land bridge that borders Europe, the Asia-Pacific, the Middle East and South Asia.

section Highlights
  • Russia will maintain its military support for eastern Ukrainian separatists and continue boasting about its nuclear capabilities.
  • The Kremlin will continue to debate its 2016 budget amid deep divisions.
  • Ukraine will continue to grapple with a shaky economy. 
  • Amid persistent tension with the West, Russia will focus on developing relationships in East Asia.
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Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

Forecasts

Middle East and North Africa

The Middle East and North Africa is the world's crossroads. It encompasses the Arabian Peninsula, the mountains of Iran, the plains of Turkey, the deserts of the Levant, the lands north of the Sahara and all coasts in between. The story of the region, as is so often the case of places stuck between foreign players, is the story of trade, exchange and conflict. The traditional powers of the region are Turkey and Iran — Saudi Arabia and Egypt are the current Arab powers — and their competition for influence over the region's weaker states makes the Middle East and North Africa an arena of violence and instability.

Jul 8, 2015 | 02:28 GMT
The Middle East and North Africa encompasses the Arabian Peninsula, the mountains of Iran, the plains of Turkey, the deserts of the Levant, the lands north of the Sahara and all coasts in between.

The Middle East and North Africa encompasses the Arabian Peninsula, the mountains of Iran, the plains of Turkey, the deserts of the Levant, the lands north of the Sahara and all coasts in between.

section Highlights
  • Turkey will continue to pursue its regional interests despite political distractions at home.
  • Riyadh will enter the third quarter with two primary objectives: limit Iranian expansion and preserve domestic security. 
  • Syria will be a focal point for regional competition.
  • The Islamic State will be mostly on the defensive in Iraq this quarter.
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Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

Forecasts

Asia-Pacific

The Asia-Pacific is home to more people than any other region. Centered on the western rim of the Pacific Ocean, this region includes the easternmost countries of continental Asia as well as the archipelagos that punctuate the coast. Several of these countries, most notably China, experienced rapid economic growth in the second half of the 20th century, giving the region a new sense of global economic relevance that continues today. That relevance, however, depends largely on China, a power in transition whose rise is testing the network of U.S. alliances that have long dominated the region. How effectively Beijing manages its transition will shape the regional balance of power in the decades to come.

Jul 8, 2015 | 14:04 GMT
Centered on the western rim of the Pacific Ocean, the Asia-Pacific region includes the easternmost countries of continental Asia as well as the archipelagos that punctuate the coast.

Centered on the western rim of the Pacific Ocean, the Asia-Pacific region includes the easternmost countries of continental Asia as well as the archipelagos that punctuate the coast.

section Highlights
  • The main risk to China's economy in the third quarter comes from the country's increasingly volatile stock market.
  • Talks between the negotiating parties on the Trans-Pacific Partnership are likely to proceed with renewed vigor.
  • most Southeast Asian countries will turn their attention inward toward emerging social, economic and political concerns.
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Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

Forecasts

Americas

The Americas stretch from the Arctic Circle in Canada to the southern tip of Chile. This geographically, culturally and politically diverse region is home to the United States, a nation whose geography helped it become the foremost economic and military power in the world — an ascendance aided in part by bringing Mexico and Canada into its sphere of influence. Farther south, the nations of South America are like islands, separated by vast spaces of impenetrable mountains, rivers and jungles. Try though these countries may to integrate more closely, deeper ties such as those that characterize North America will prove elusive.
Jul 8, 2015 | 14:20 GMT
This geographically, culturally and politically diverse region is home to the United States, a nation whose geography helped it become the foremost economic and military power in the world

This geographically, culturally and politically diverse region is home to the United States, a nation whose geography helped it become the foremost economic and military power in the world

section Highlights
  • The Venezuelan government will attempt to balance the competing domestic priorities of saving dollars for paying foreign debts due in the fourth quarter.
  • Despite increased violence on the battlefield, the Colombian government's peace negotiations with rebels are likely to make progress.
  • The presidential election in Argentina will distract from negotiations with so-called holdout bondholders.
  • By Aug. 1, Mexican state-owned energy firm Petroleos Mexicanos and its main labor union will agree on a new collective contract.
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Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

Forecasts

South Asia

Everything that informs geopolitics can be found in South Asia: challenging demographics, geographic diversity, and contentious, ill-defined borders. The Himalayan Mountains form the northern border of South Asia, whose two main rivers, the Indus and the Ganges, support the region’s great population centers. India is the region’s dominant country, home to the world’s fastest growing economy. But its rivalry with neighboring Pakistan, a fellow nuclear power and growing consumer market, has made South Asia one of the world’s most dangerous nuclear flashpoints. The region is also a testament to how militancy and militarism can undermine the regional integration needed to unleash higher economic growth.

Jul 8, 2015 | 14:54 GMT
Everything that informs geopolitics can be found in South Asia: challenging demographics, geographic diversity, and contentious, ill-defined borders.

Everything that informs geopolitics can be found in South Asia: challenging demographics, geographic diversity, and contentious, ill-defined borders.

section Highlights
  • We expect Indian economic growth to continue steadily, even if at a slower pace than currently reported. 
  • Garment exports in Bangaldesh are expected to rise as strikes and protests taper off. 
  • The Islamic State will challenge the Taliban's position in Afghanistan.
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Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

Forecasts

Sub-Saharan Africa

Sub-Saharan Africa is a study in diversity. Covering an area that spans the entire width of the continent beginning at the Sahara Desert and ending at the southernmost tip of South Africa, the region is home to countless cultures, languages, religions, plants, animals and natural resources. It’s no surprise that it captured the imagination of Europe’s earliest explorers — and that it continues to capture the imagination of current world powers eager to exploit it. And yet despite the region’s diversity, Sub-Saharan African countries have common challenges — transnational terrorism, rapid population growth, endemic poverty and corruption — that prevent them from capitalizing on their economic potential. The coming years will be critical for the region, especially as its political institutions mature in a rapidly globalizing world.

Jul 8, 2015 | 15:10 GMT
Covering an area that spans the entire width of the continent beginning at the Sahara Desert and ending at the southernmost tip of South Africa, Sub-Saharan Africa is home to countless cultures, languages, religions, plants, animals and natural resources.

Covering an area that spans the entire width of the continent beginning at the Sahara Desert and ending at the southernmost tip of South Africa, Sub-Saharan Africa is home to countless cultures, languages, religions, plants, animals and natural resources.

section Highlights
  • The main policy items for Nigeria in the immediate future are energy and security. Movement on the Petroleum Industry Bill is unliekly.
  • In South Africa, labor negotiations are reaching a point where continued tension and potential strikes will be occurring through the first half of the quarter.
  • Low demand and stiff competition will prevent oil majors from investing heavily into Tanzania.
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Stratfor said at the beginning of 2015 that this would be the year when Europe would be knocked out of complacency. The third quarter is when the harsh reality of an unraveling eurozone confronts Berlin and the eurozone at large....

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