Global investors are preparing to slow down the growth of the economy.Demand for US sovereign debt is the lowest in 10 years, the Bloomberg agency said, recommending traders not to risk sudden movements at auctions.”The Treasury Department on Tuesday (8 January) sold three-year securities for $ 38 billion, which coincides with the largest auction volume since 2009. The subscription has been minimal since 2009. On Wednesday, the agency plans to offer 10-year securities for 24 billion dollars, whose yield is 2, 73 percent … “
Such information was included in the Wednesday publication of the Russian edition of Finanz.ru.
The World Bank also has not added optimism to financiers, anticipating a slowing global economy (compared to 2018) for at least another two years. According to experts of the World Bank, this year the economy of China and the euro zone will slow down significantly, and next year the US economy will release. The economy of Russia will remain unchanged, but its impact on the global economy cannot be called significant. Forecasts regarding the economy of Turkey, whose GDP grew last year by 7.4%, are extremely disappointing, because in the coming year a decline to 1.6% is expected.
– At the beginning of 2018, the world economy was operating at high speed, but it lost speed during the year and it could become even more turbulent next year. As economic and financial barriers to developing countries grow, we can risk progress in reducing extreme poverty in the world. To keep up the pace, countries need to invest in people, promote inclusive growth and build sustainable societies, “said Kristalina Georgieva, World Bank Director General.
India will be satisfied with GDP. The economy has a growth potential of 7.5% annually in 2019-2021, which results from the World Bank’s forecasts. Considering that in the last three years India’s GDP has grown by 6.7-7.3% annually, it has a chance to become the fastest growing in the modern world.
This view is supported by the International Monetary Fund, which clearly stated that trade protectionism (implied mainly by the United States) will hit the growth of the economy in both China and the United States.
What is the reason for these disturbing forecasts?
The Organization for Economic Development and Cooperation (OECD) predicts that the slowdown will initially affect emerging markets and then spread to developed countries. In 2020, growth is expected in the euro area – 1.6%, in the US it is to reach 1.6-2.1%, while the growth of the Chinese economy may slow down to about 6%.Economic growth in South Asian countries will also slow down, amounting to 7.1% annually from 2019 to 2021. China’s GDP, as we have already mentioned, will grow by only 6.2%, the Bangladeshi economy will also grow by 7%, and Indonesia – by 5.2 %. In total, however, all of South Asia will slow down.
The World Bank is also complementing the image of the global economy with the following opinion: “It should be added that the emergence of blockchain technology has resulted in high activity in various regions of Europe and Central Asia. Governments that try to digitize and optimize public services are experimenting with blockchain technology, trying to make it transparent and secure inherent in regulated currencies. “