IN THE HANDS OF POLITICIANS: Scotiabank Economics Global Outlook

TORONTO, April 12, 2019

"While we continue to think the soft patch we are going through will be temporary, the global economy remains in a delicate position," said Jean-François Perrault, Senior Vice President and Chief Economist at Scotiabank. "At this point in the cycle, confidence is key to sustaining the expansion, and Trump's misguided efforts to make America great risk achieving the opposite."

Highlights of Scotiabank's Global Outlook include:

• Canada: Above-potential growth to resume in Q2 as the factors contributing to the soft patch in Q4 2018 and Q1 2019 are reversing. Growth is expected to slow modestly to 1.6% during 2019 before rising to 2.1% in 2020.
• United States: A gradual US GDP growth slowdown (2.9%/2.4%/1.9% in 2018/19/20) is expected on the back of the waning boost from fiscal stimulus.
• United Kingdom: While we expect that the UK and the EU will avoid a hard Brexit, we forecast that economic growth in Britain will remain sluggish in the near-term amid lingering geopolitical uncertainty and as the economy adjusts to a post-Brexit world.
• Eurozone: Real GDP growth will slow in 2019 owing to global trade and geopolitical uncertainty as well as certain transitory factors impacting the European industrial sector. Domestic demand in the euro bloc should, however, remain resilient despite external headwinds.
• Mexico: heightened uncertainty is leading to slower growth, with GDP expected to rise by 1.4% in 2019.
• China: A gradual deceleration is underway, but recent policy measures to raise demand are starting to bear fruit.
• Commodities: Healthy global economic growth provides a solid demand backdrop for commodities through 2020, allowing fundamentals to reassert commodity-specific price paths over the coming years

Read Scotiabank's Global Outlook online here.

Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues. Follow this research on Twitter at @ScotiaEconomics.

About Scotiabank

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