Where Global Growth Currently Stands
We look at the global growth according to the top national economies globally. The order has shifted slightly from one year to the next. Due to many factors and the most being a country’s political uncertainty.
Such as in the United States (U.S), Trade policy reflects politics and politics remains unsettled in several countries. This is due to the trade disputes sparked by President Donald Trump that have led to tit-for-tat exchanges of tariffs among major trading partners. This is affecting China, other Asian economies and more vulnerable countries like Argentina and Turkey, along with Brazil.
Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.S. economy is still the largest in the world with a nominal GDP forecast to exceed USD 21 trillion in 2019. The dominant US economy has been shielded from the ill effects so far due to the stimulus provided through tax cuts and spending policies, but that’s said to wear off by 2020.
An upswing in economic risks due to rising trade tensions and debt levels has prompted the International Monetary Fund to cut its forecast for world growth for this year and next.
With trade growth set to slow sharply amid a trade war between the U.S. and China, the IMF cut its outlook for global GDP by two-tenths to 3.7 percent for 2018 and 2019, according to the quarterly World Economic Outlook Report issued.
The revised estimates include a worsening outlook for developing economies this year and next compared to the July report. As well as downgrades for the US and China in 2019 for two of the largest economies.