Global turbulence continues to affect growth predictions
The International Monetary and Financial Committee (IMFC) has announced it expects the global economy to grow by around 3% over the next year as the growth rate continues to slide after significant turbulence throughout 2019.
Lesetja Kganyago, Governor of the South African Reserve Bank, who chaired the 40th IMFC meeting said: "Growth is projected to pick up next year, but the outlook is highly uncertain and subject to elevated downside risks.
“These include trade tensions, policy uncertainty, and geopolitical risks, against a backdrop of limited policy space, high and rising debt levels, and heightened financial vulnerabilities. Other longstanding challenges also persist.
“In line with central banks’ mandates, monetary policy should ensure that inflation remains on track toward, or stabilises around targets, and that inflation expectations remain anchored.
“Central bank decisions need to remain well-communicated and data-dependent. We will continue to monitor and, as necessary, tackle financial vulnerabilities and risks to financial stability, including with macroprudential policies,'' he explained.
With an ongoing trade war between the US and China, as well as growing regional issues of national versus international governance (such as Brexit) further compounding issues, world trade is facing a number of uncertainties at present.