Global and euro area economic developments The global economy is experiencing a synchronised slowdown; however, some signs of stabilisation have recently emerged, somewhat boosting market sentiment. The IMF recently revised down its forecasts, but still projects a modest expansion for 2019–2021: global growth is projected to rise from 2.9% in 2019 to 3.3% in 2020 and to 3.4% in 2021.
Despite some positive news on trade (i.e. the US-China “phase one” trade deal), diminishing concerns of a no-deal Brexit and the continuation of accommodative monetary policies across the globe, the projected recovery is uncertain and the risks to the global economy remain on the downside.