Global economy will witness consolidation in 2020: Top banker

The global economy will witness consolidation in 2020 despite the weakening growth in the US, China , the euro area and Japan, which will be offset by a handful of smaller emerging markets — Brazil, India, and South Africa — rebounding from tepid growth in 2019, noted a top official of Doha Bank at an event held in southern Indian state of Tamil Nadu.
Dr R Seetharaman, CEO of Doha Bank, was speaking on “Global economic situation – Opportunities and challenges” at the Chennai Global Economic Summit 2019 and Sixth World Tamil Conference, which was held on December 28.
Dr Seetharaman said: “According to IMF’s October 2019 report, Global growth is forecast at 3 percent in 2019, picking up to 3.4 percent in 2020 respectively. For advanced economies, growth is projected at 1.7 percent in 2019 and 1.7 percent in 2020 respectively. The emerging market and developing economy group is expected to grow at 3.9 percent in 2019, rising to 4.6 percent in 2020. The  Global expansion is a fragile one, with growth weakening in the US, China , the euro area and Japan offset by a handful of smaller EMs -Brazil, India, and South Africa – rebounding from tepid growth in 2019. The year 2020 is expected to witness consolidation.”
He added: “The macro-environment is looking up in 2020, including the phase one US-China trade deal, improving economic data, and the effects of global monetary policy easing across the globe. The looming recession risk is much lower at the end of 2019 than mid-year, but, any breakdown in the US-China trade talks could change everything. Recession fears were at their highest levels in mid-2019, when the yield curve inverted for the first time since 2008. We are likely to see some stabilisation next year as the impact of monetary policy easing around the world is felt. We saw a number of dovish surprises from central banks globally in 2019. This should add some support to growth generally. Oil prices will likely be boosted by the higher cuts in supply committed to by the Organization of the Petroleum Exporting Countries and its allies (Opec+) and the envisaged rebound in global growth, particularly in EM.”
Commenting on India’s economy, he said that the Asia’s third largest economy grew at its slowest pace in more than six years in the July-September period, down to 4.5 percent from 7 percent a year ago. India is expected to take steps to reverse the economic slowdown of an economy that has been one of the engines of global growth. The key happening segments in India include an attractive investment destination, e- commerce market, largest road network, food production, domestic air passenger growth and largest startup eco-system.
The bilateral trade between Qatar and India during in 2018-19 is above $12bn. Qatar’s major exports to India include Petrochemicals, LNG, fertilizers, Sulphur and Iron Pyrites. Qatar’s major imports from India include accessories, manmade yarn, fabrics, made-ups, cotton yarn, transport equipment, machinery and instruments, manufacture of metals, ores and minerals etc.

Source from: The Peninsula