Global economic outlook in 2020?

Worst may be over

Global economy has been through a tumultuous period in last year. Yet, it managed to maintain solid growth in both developed and developing countries worldwide. The trend should continue this year.

Majority of main economic institutions agreed that the greatest turbulence is already over. Nevertheless, this year may not be completely calm. The “phase one” trade deal between the U.S. and China brought probably the greatest easing. It should be signed on 15th January and talks on “phase two” will soon begin.

While Global Monetary Fund predicts GDP growth in 3,4%, World Bank estimates the increase in 2,7% only. Additionally, economic growth will be supported by ongoing expansive monetary policy. The major Central Banks worldwide are likely not to raise their interest rates and they could even decrease if inflation falls.

Even so, some risks still remain: Brexit, China’s economic transformation, concerns about sharp market corrections or unprecedented level of important global economic players indebtedness.


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