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Davos 2020: Here’s what you need to know about the global economy

By January 18, 2020December 14th, 2021No Comments

As 2020 gets underway, the global economy is at a crossroads. Rising inequality, trade tensions, technological disruptions, climate change and geopolitical uncertainty all threaten to weigh on already-fragile economic growth at the start of the new decade.

As the Forum’s Global Risks Report 2020 makes clear, the global economy “is facing an increased risk of stagnation… all while citizens worldwide protest political and economic conditions and voice concerns about systems that exacerbate inequality.”

The International Monetary Fund in October lowered its outlook for global growth for 2019 and 2020, noting that “rising trade and geopolitical tensions have increased uncertainty about the future of the global trading system and international cooperation more generally, taking a toll on business confidence, investment decisions and global trade.”The world is at an economic “tipping point”, according to the Forum’s most recent Global Competitiveness Report. It highlights a “backlash against capitalism, globalization, technology and elites.” At the same time, the report notes that trade and geopolitical tensions have held back global investment and increased supply shocks, including “disruptions to global supply chains, sudden price spikes or interruptions in the availability of key resources”.

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