Economy

DRIVER: The global economy still faces serious headwinds and political uncertainty potentially balanced by the enormous promise of technological advancements in many fields. Read on to get a solid handle on the opportunities and risks you and your organization may likely face and set your sails accordingly.

The global economy is in crisis, with the world output projected to shrink by nearly $5 trillion in 2020.
South East Asia is on track to becoming the fourth-largest economy by 2030, with an increasing percentage of GDP driven by the digital economy.
WoodMac anticipates LNG demand doubling over the next 20 years, driven by Asia's economic growth and increasing penetration - particularly where policy supports gas over coal.
The Bank of Latvia forecasts that Latvia's GDP will grow by 5.1% in 2021, as opposed to the previously estimated growth of 6.7%, but Latvia's economic growth forecast for 2022 has not been changed, expecting GDP to grow by 5%.
The U.S. economy reopened faster than expected in the third quarter of 2020 because many consumers and businesses adapted to remote working and the Federal Reserve committed to low interest rates.
Islamic finance is predicted to grow five percent throughout 2020, despite some downward pressure being applied due to poor economic conditions in core markets.
Even with the current outbreak and reintroduction of more significant containment measures in Victoria, the Australian economy is expected to perform better than all major advanced economies in 2020.
Robust demand from China is expected for the rest of the year albeit prices may soften due to more non-Chinese producers redirecting excess production to China in order to benefit from the greater spot liquidity and higher prices, thereby weighing down domestic prices.
An accelerated energy transition could add 5.5 million more jobs to the global economy by 2023, compared to a business-as-usual scenario, while enabling renewable generation to grow five times faster.
For the global production of medium and heavy commercial vehicles, we expect a decline of more than 40% in the second quarter of 2020.
We currently expect the global production of passenger cars and light commercial vehicles to fall by more than 40% in the second quarter of 2020.
U.S. gas supply can be heavily impacted by oil prices given the associated gas in the Permian Basin, and November 2020, Wood Mackenzie is expecting a slight bump in U.S. output to just below 90 Bcf/d.
On the basis of PPP, economy of India in 2020 is projected at 12,363 billion international dollar, 3rd largest economy of the world after United States and China.
With oil prices now expected to average below $40 per barrel in 2020, the Saudi government budget will come under substantial pressure.
Recent studies in peer-reviewed journals show the world economy taking a huge hit from global warming by century's end, shrinking up to 20% by 2100 if greenhouse gases continue unabated.
Worldwide airfreight volumes are expected to rebound to 95% of pre-COVID levels in 2021 as the global economy improves, the IATA estimates.
If the US could instantly end the most severe forms of economic discrimination against African Americans, it could give a $5 trillion boost to gross domestic product over the next five years.
Indian house prices will fall more sharply in 2020 than expected just three months ago amid surging coronavirus cases which are hurting demand in an economy fighting its deepest recession on record, a Reuters poll showed.
Compounded with the additional event risk of collapsing oil prices and an increasingly hostile global trade environment it is perhaps unsurprising that Asian risk premiums as measured by high yield bond spreads have spent most of the year at multi-year highs.
Banking and Economy Fitch Solutions projects IndiFitch Solutions has revised downward its forecast for Indian economic growth and now estimates that India's GDP will contract by 8.6% in 2020-21 (FY21).
Just as electricity drove rapid growth in the early 20th century, AI and machine learning will be key to rebuilding the Australian and global economy in the next decade.
Regardless of the winner of the 2020 U.S. presidential elections, the next administration will confront the dual challenge of reviving a struggling global economy while ensuring an inclusive domestic economic recovery.

Last updated: 06 October 2020

Economy

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