Despite recent shocks in financial markets, the global economy will continue to expand at a modest rate in 2019, according to a new analysis at the World Economic Forum in Davos, Switzerland by IHS Markit.
“A ‘perfect storm’ shook markets in late 2018,” said Nariman Behravesh, chief economist for IHS Markit. “Slowing global growth, the gradual removal of monetary accommodation, the China-U.S. trade conflict and U.S. government shutdown all contributed to the recent rout. However, it’s important to note that the stock market is not a reliable predictor of recessions, and the probability of a recession in 2019 remains low.”
The annual four-day economic forum in Davos, Switzerland that ended Saturday (Jan. 26) attracted over 2,500 participants, including many leaders from the world of politics and business. Last week, President Donald Trump said he would not attend the global conference and canceled the U.S. delegation’s trip to the event due to the partial federal government shutdown over more than $5 billion in funding for a wall on the U.S.-Mexico border.
Read more: https://talkbusiness.net/2019/01/ihs-markit-at-davos-forum-global-economy-will-dodge-recession-in-2019/