Snapshot

Strategy & economics

Why 2020 outlook is looking brighter for the global economy


Keith Wade

Keith Wade

Chief Economist & Strategist

Schroders

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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.


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This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 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. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

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