The World Bank forecast a moderate pick-up in global growth in 2020, even as it cut growth projections for the United States (US) and euro area (EA)
The US non-farm payroll jobs data disappointed in December, coming lower than market expectations
Japan followed other major central banks in keeping interest rates unchanged
China asked banks to link new loans to external benchmark in a move aimed at interest rate liberalization
The World Bank projected a moderate recovery in global growth for 2020 to 2.5%, from an estimated 2.4% in 2019, as trade and investment improve. However, it also signaled a cautious note, stating that downward risks in the form of “re-escalation of trade tensions, and sharper than expected downturns in major economies”, persist. The bank cut the US growth to 1.8% for 2020, this year, down from 2.3% estimated in 2019. The EA growth is projected to slip to 1% owing to weak industrial production. Growth in emerging markets and developing economies is forecast to accelerate to 4.1%.
Evidently, the events of a bruising 2019 weigh heavily on the growth forecasts for the year ahead.