, the rise in trade and geopolitical tensions managed to increase a series of uncertainties about the future of the global trading system, as well as international co-operation. These uncertainties ended up taking a toll on global trade, business confidence, and of course, investment decisions.
The economics team at HSBC expects the global growth of the economy in 2020 to run at its slowest pace since the previous global financial crisis, due to it being weakened by the US-China trade war. Growth in China is expected to slow from 6.2% in 2019 to 5.8% in 2020, the slowest pace of growth seen in the past 30 years.
The 2020 US elections are also becoming a point of concern concering the future of the economic performance of the US itself, as most discussions of the candidates’ economic policy proposals have been based more on generalised feelings and ideologies instead of facts and thorough analyses. If the US economy remains as strong as it is now, Trump has a good chance of a second term. However, downside risks are mounting, and if they materialise, a Trump victory will become less likely.
Investors and financial markets worldwide are staying tuned to all these events, as they are awaiting stronger signals to pounce on which pertain to the political and economic futures of the UK, US, and China. Each possible outcome presents a series of different potential economic and financial risks that may have lasting effects that last well beyond 2020.https://www.compareforexbrokers.