Global economic growth has slowed down this year and will remain weak next year
Source: UBS
Global economic growth has slowed down from 4 % in 2018 to currently estimated 3 % in 2019. First chart from the biggest Swiss bank UBS shows that almost all big economies like the US, Eurozone, China and India have contributed to the slowdown this year. Second chart shows that economists currently predict approximately stagnation for 2020 on the level of 3 %. However the growth dynamics will be regionally significantly unbalanced. US, Eurozone and China will continue to slow down. These negative contributions to the global growth will be offset by a higher growth in India, Russia and Brazil. Therefore the global growth in 2019 and 2020 will be the weakest since the global financial crisis (GFC) 10 years ago. On the other hand a global economic recession does not look very likely at the moment which is positive news for all risky assets like equities.
Michal Stupavský
investment strategist of CONSEQ