The global economy entered 2019 facing headwinds that included the ongoing uncertainty around the U.S. war on trade, a series of idiosyncratic events in the Euro area and the U.S. government shutdown. In April, the IMF lowered its growth forecast for 2019 to 3.3% from the previous level of 3.5% in its latest World Economic Outlook. This […]
The current global economic expansion is already one of the longest in the post-war period, beginning in the second quarter of 2009 and now almost a decade long. After three years of upgrades to global growth projections, the last three or four months have seen modest downgrades from organizations such as the IMF and the […]
Section 1. Q2 2019 Outlook Multiple Factors Raise the Prospect of Risk Asset Volatility As we look forward to the second quarter of 2019, we expect to experience greater volatility. Capital around the world moves to markets where it sees the greatest opportunity and to escape other relatively riskier international environments. The U.S. is […]
Progress on U.S./China trade negotiations and the Federal Reserve’s more dovish rhetoric regarding further interest rate hikes have not convinced us to change our forward outlook that expects the U.S. economy to experience stagnation over the next twelve months. Geopolitical risks remain elevated with Brexit’s outcome uncertain, upcoming elections in the European Union, and the […]
Geopolitical risks are expected to dominate global asset class performance over the coming months. Consideration of ongoing trade tensions and the aftermath of the U.S. government shutdown have led us to revise our forward outlook to reflect our view that the U.S. economy will experience stagnation over the next twelve months. While still undergoing revisions, […]
As we enter 2019, there is a heightened focus on downside risks both domestically and globally in the markets and in the broader economy. A negative feedback loop has emerged that is centered in the U.S., linking bad policy choices to falling asset prices, tighter financial conditions, and weaker corporate earnings. In the short-term, the […]
Section 1. Q1 2019 Outlook As we enter 2019, there is a heightened focus on downside risks both domestically and globally in the markets and in the broader economy. A negative feedback loop has emerged that is centered in the U.S., linking bad policy choices to falling asset prices, tighter financial conditions, and weaker […]
Recent reasons to hope for a more stable global economy in 2019 are contending with reasons to worry. Hope has come from the temporary U.S./China tariff truce and an oil supply shock that will positively impact global consumer spending next quarter. Concern remains as global geopolitical risks escalate, and the fading benefit of fiscal stimulus […]
The global economy has delivered above-trend growth and a modest rise in inflation this year. This trend is expected to end, as increasing dependence on U.S. demand should not be capable of carrying the rest of the world. We expect that the combination of the escalating trade dispute with China and monetary tightening by the […]
In October, we evolved our twelve-month forward-looking outlook to reflect a six-month period of Growth, followed by a six-month period of Inflation. The global economy remains on track for another year of solid growth, likely to be just under 4%, as we enter the fourth quarter of 2018. However, domestic factors are causing the overall […]