Remember yeah, predictions are just predictions even if it uses a lot of real numbers based on historical and the current momentum for example. Sentiment could change anytime during the year from negative to positive or from positive to negative. Very real example? World Trade ‘war’ between the two largest economies could continue suddenly even if it seems that there is a truce at the moment.
The United States have also demanded many countries to agree to what it was thinking and wanted them to do and failure to do so may cause lots of friction and tension. With all these negative potential happenings, of course the sentiment is likely to be negative, thus impacting businesses from expanding and this will just meant less jobs will be available. Not a good sign, right? What is World Bank’s latest assessment of the global economic growth for 2020?
Article in forbes.com The World Bank has warned of ongoing uncertainties from tariffs and geopolitical tensions as well as the risk of a fresh global debt crisis. However it expects the global economy to grow 2.5% for 2020 and this is better than the 2.4% expected for 2019. It is however lower than earlier forecasted 2.7% for 2020.
Growth within advanced economies will be just 1.4% while that of emerging market and developing economies will rise 4.1%. The World Bank also warned of a fresh global debt crisis because of the “largest, fastest and most broad-based accumulation of debt since the 1970s! Ayhan Kose, the World Bank’s lead economic forecaster warned, “Low global interest rates provide only a precarious protection against financial crises.” Do refer to more numbers in the Article in forbes.com
Malaysia is still grouped under the developing country and since we have forecasts ranging from 4.3% all the way to 4.8% for GDP 2020, we are considered above the average of just 4.1% for the world. Then again, an extra 0.2% is actually marginal. I think our economy has to continue its diversification and it is not wise to rely on just mining and exporting for example. Attract more visitors during the Visit Malaysia Year 2020.
Beyond just manufacturing, could we (government and Malaysians) have a more pro-active role in expanding the private healthcare to serve the world. These patients do not just come alone, they come in one family and this will be extra spending within Malaysia. Start ensuring the supply growth for the property market is a purposeful one and not just simply build, build and then worry, worry. There’s a lot more but I am not part of the government. Haha. Happy reading.
Next suggested article: More coming in 2020 during VisitMalaysia Year. China and India.