The global economy is living dangerously – but don't expect superpowers to follow the 2008 script

Spencer Platt/Getty

• Twelve months ago, the global economic outlook was encouraging.
• Now things are looking far less rosy.
• US growth is expected to slow from 2.9 percent in 2018 to 2.5 percent in 2019, as the stimulus from Donald Trump’s unfunded tax cuts wears off.
• Stock markets have also wilted dramatically over the past few months.
• Donald Trump’s trade aggression towards China – his tariffs on $200 billion of imports and threats of more – appear to be, finally, hitting the real economy, undermining sentiment among firms, and harming investment.

Twelve months ago the global economic outlook was encouraging, strong even: 2017 had seen the best year of international GDP growth since the aftermath of the financial crisis and 2018 seemed to offer even better. “The global cyclical upswing that began midway through 2016 continues to gather strength,” reported the head of economics at the International Monetary Fund, Maury Obstfeld.

Stock markets were booming. Business confidence was high. Consumer sentiment was robust. It looked like the world was finally shaking off the painful memory of the global financial crisis a decade ago. Now things are looking far less rosy.

See the rest of the story at Business Insider

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from Business Insider https://read.bi/2BW0a4s