According to analysts at NAB, global growth slowdown has extended into Q4 last year with growth in the US expected to have come off its 2018 high, while China and the Euro-zone leading the way lower.
Key Quotes
“Early indicators point to a further softening in the global economy into early 2019. Given the softer economic conditions, expectations around major central bank monetary policy has become more dovish, helping to reverse some of the deterioration in financial conditions that occurred in late 2018.”
“Our forecasts for global growth have been revised marginally lower in 2019 – down to the long term trend rate of 3.5% (from 3.6% previously).”
“Slower growth in the US, the Euro-zone and China are the key drivers of this trend.”
“We expect growth to stabilise at this level in 2020, partly as a result of a dovish shift in policy.”
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