Global Economy Continues to Suffer Weak Growth Momentum

Michelsen, Claus; Baldi, Guido; Dany-Knedlik, Geraldine; Engerer, Hella; Gebauer, Stefan; Rieth, Malte (2019). Global Economy Continues to Suffer Weak Growth Momentum. DIW Weekly Report, 9(49+50), pp. 420-422. DIW Berlin Deutsches Institut für Wirtschaftsforschung e.V. 10.18723/diw_dwr:2019-49-2

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Favorable labor market conditions and the resulting increase in private consumption are still sustaining the global economy. Trade disputes and political uncertainties, however, continue to slow investment activity, with the result that economic growth will only be moderate particularly in advanced economies. By contrast, growth is accelerating in emerging markets, especially in India. Global economic growth is likely to remain moderate over the next two years. Consumption, in particular, will continue to prop up the economy, with investment activity expected to remain sluggish in the near term, despite favorable financing conditions. Towards the end of the forecast period, investment is expected to pick up again and trade to recover, replacing private consumption as the main drivers of growth. Worldwide, the economy is expected to grow by 3.6 percent this year and by 3.7 percent in each of the two subsequent years. Even though tariff disputes between the US and China have eased somewhat, downward risks remain high. Additional US tariffs and Brexit uncertainties threaten to weaken the economy.

Item Type:

Newspaper or Magazine Article

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Baldi, Guido

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

2568-7697

Publisher:

DIW Berlin Deutsches Institut für Wirtschaftsforschung e.V.

Language:

English

Submitter:

Dino Collalti

Date Deposited:

29 Apr 2020 17:25

Last Modified:

29 Apr 2020 17:25

Publisher DOI:

10.18723/diw_dwr:2019-49-2

Additional Information:

DIW Economic Outlook

BORIS DOI:

10.7892/boris.138739

URI:

https://boris.unibe.ch/id/eprint/138739

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