While it has been described as being in the later stage of the current economic expansion, this has so far been the longest business cycle the economy has seen since World War II. Despite tariff headwinds and structural challenges in 2019, some economic guardrails such as monetary policies have been set in place to keep expansion on course throughout the next year, albeit at a slower pace. Interest rates and negative yields have also been key headlines in 2019. Their effects will be broadly felt in 2020 and what they herald for the state of the economy going forward.
As central banks turn to monetary policy for solutions to support further economic growth, economists look to ponder the limits of those policies and the future problems in the credit market that they may bring.
The RBC Global Insight 2020 Outlook dives further into the details of the low interest rates and negative yield environment. There is also a fascinating piece by Frederique Carrier, Head of Investment Strategy in our UK office, on the “New Industrial Revolution,” the combination of AI, driverless cars, and big-data. It is a must-read.
To read the full Global Insight 2020, please follow the link below.
Here’s to a great start to 2020!
Sam McLaughlin