According to fund manager Janus Henderson the risk for a recession in 2019 is small. However, he believes that global growth will be very low. This slowdown can be seen in some of the global growth numbers that are already coming out. Europe which has been growing slowly is expected to grow at only 1.3% in 2019, which is a decrease in previous estimates. China's growth also slowed dramatically in the second half of 2018 and there have been no signs of a turnaround.
In the USA the fed had stated that they are holding interest rates steady for the time being. this is a change from their early statements. Indicating that they might be seeing some softness in the economy as well. The fed will release the minutes form their meeting on Wednesday and the markets will be monitoring them closely.
https://www.cnbc.com/2019/02/18/no-recession-but-global-growth-will-slow-down-janus-henderson-says.html
1 comment:
Overall it seems like countries need to solve some internal economic issues. America itself has a massive national debt to pay off, which is the underlying instability behind the positive indicators the 2018 statistics showed. Growth is also important but stabilizing the economy seems more of a priority at the moment.
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