There is a global slowdown that is hurting countries across the world. Growth has declined in many countries. Central banks are bringing in various stimulus measures to revive the economy.
The trade war between the U.S. and China has had a terrible impact on many countries. Trade tariffs on goods traded between both countries have affected various sectors. As many countries have trade links with China, the supply chain has been disrupted which has affected major economies in Asia and Europe, bringing down investment and production.
The IMF has predicted a global growth rate at 3 percent in 2019, down from the projected rate at 3.2 percent in July. For 2020, GDP growth is projected at 3.4 percent. Trade tariffs and geopolitical tensions are the reasons cited for the decline.
Most central banks have reduced interest rates to zero and in the negative zone too, to bring in liquidity into the market. Few countries have been worst affected.
There is a huge slowdown in China. The GDP for China is forecast at 6.1 percent for the current year 2019, while it will be 5.8 percent in 2020, says IMF reports. In 2018, it was at 6.6 percent.
Hong Kong which is hampered by for five continuous months by demonstrations faces a severe downslide in growth. Worst affected are tourism and retail business. The political backlash is hurting the economy.
The Brexit issue continues to affect the United Kingdom. The service sector has been hit and political tensions continue to bring a decline in the industrial sector and investment.
Italy has been in a technical recession from 2018. The political turmoil and increasing debt in the country have brought down productivity and increased inflation, which in turn is increasing unemployment.
Germany, which depends on its export sector, has been sliding into a recession caused by the Brexit issue and the trade conflict. Exports have come down and manufacturing has been hit.