Findlay Nicolson economists say rapid global economic expansion is likely a thing of the past.
Although economists at Findlay Nicolson say a slight pickup is expected later on in the year, on the whole, forecasts from economic commentators are grim with policy makers and central banks having limited policy possibilities to help spur a rebound.
Pessimists are suggesting that the global economy could be heading for a recession before the end of this year while those who are more optimistic are saying that if recent policy errors were to be rectified, there could be a fairly rapid return to growth.
Findlay Nicolson economists have cited trade tensions and tougher financial conditions as the main risks threatening the growth of the world’s economy.
Although there have been some encouraging signs from China’s economy, Findlay Nicolson economists believe unresolved trade tensions with the United States will continue to plague the world’s second largest economy.
In Germany, investor confidence increased for the sixth consecutive month last month after Britain’s exit from the European Union was delayed, but Findlay Nicolson economists say the lift in sentiment was probably based on the possibility that the world economy would not slow by as much as previously thought.
The global economy is expected to expand at a rate of 3.3% in 2019, making it the slowest rate of growth since 2016 and Findlay Nicolson economists say a return to the rapid expansion seen in 2017 is not likely to happen soon.