by: Sheri Blaho
Russell Evans presented a review of the Oklahoma Economic forecast. Although the energy index for Oklahoma is going down, the employment rate at this date
is remaining stable. That is because there is only weakness in this one sector, although it is a key sector. He believes that Oklahoma is in better
shape for an oil retroaction due to our diversity.
Globally, he shared a discussion about the China stock market. The majority of their equity market is based on government owned and operated industries. They use this capital for investment in the private segment. As a result they have systematically misallocated resources since they are not allowing the business development to rely on public demand. This is evident with many “ghost” cities, empty apartment buildings and empty manufacturing plants. They have built them, but no demand. So their historically high GDP is below last year, as are most other counties. This means the demand for oil globally will remain low.
He predicts that this impact on oil demand based on their economic models will begin to rise in late 2016.