Snapshot

Why 2020 outlook is looking brighter for the global economy


The outlook for the world economy in 2020 is looking better.

We have just had a trade deal between the US and China, which means one of the drags on economic activity is going to fade.

That is the uncertainty the US-China trade talks have created. It has been a drag not just on trade but also on capital spending and business planning.

We think that will lift a bit in 2020, enabling companies to do more spending. It will probably help to lift confidence throughout the world economy.

The other factor we think is going to help is the easing of monetary policy that took place in 2019, which is feeding through into stronger borrowing and stronger spending.

The final point, and a very domestic one, but helpful for not just the UK and Europe is it looks like Brexit is going to be settled. At least an exit plan between the UK and Europe will be decided by the end of January.

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Registered Office at 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored. 

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