According to David Goodman, head of macro strategy at Westpac, global growth momentum has clearly swung to the downside to begin 2019, with Central banks responding to heightened global risks whilst all simultaneously championing their domestic outlooks.
Key Quotes
“Financial conditions tightened materially to end 2018 and US-China trade tensions hit a crescendo. In addition, the US government shutdown and polar vortex could be argued as one off contributors to the recent stall in growth momentum.”
“As these factors recede, plus the potential for a market friendly trade outcome as well as an easing in financial conditions post the “patient” January Fed meeting and soothing tones from other central banks, we see global growth cresting not plummeting.”
“Global risks are definitely skewed to downside.”
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