PERSPECTIVE3-5 min to read

Economic and Strategy Viewpoint - September 2020

We upgrade our forecast for global GDP growth this year, largely thanks to better-than-expected US growth in Q2.

08-18-2020
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Authors

Keith Wade
Chief Economist & Strategist
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Azad Zangana
Senior European Economist and Strategist
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Piya Sachdeva
Economist
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  • Global GDP growth in 2020 has been upgraded to -4.6% from -5.4%, driven by a significant revision to the US after a better-than-expected performance in Q2. Near-term the forecast path for growth resembles a square root sign; overall it is still a U.
  • Inflation is expected to remain subdued allowing central banks to keep policy loose with no rate rises in the forecast. However, we do see some easing in the pace of quantitative easing as growth continues through 2021.
  • We anticipate a change in occupancy at the White House although Congress is expected to remain split after the election. This could limit the new President's room for manoeuvre on fiscal policy although international trade tensions may ease.
  • We still see the risk of a second wave, but overall the balance of risks has shifted in a slightly more reflationary direction led by a switch in our scenarios and a continued chance of a V-shape recovery.
Read full reportESV-August-2020
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The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.

Authors

Keith Wade
Chief Economist & Strategist
See all articles
Azad Zangana
Senior European Economist and Strategist
See all articles
Piya Sachdeva
Economist
See all articles

Topics

Perspective
Keith Wade
Azad Zangana
Piya Sachdeva
Economics
GDP
Global economy
Growth
Inflation
Interest rates
Economic & Strategy Viewpoint
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