Key risks for the global economy

Despite a positive macro outlook, investors are starting the year with several worries.

Summary: Global growth is at trend and expected to rise, and the global expansion is robust, with only pockets of weakness. A fall in commodity prices is delivering stimulus, while central bank balance sheets are still to expand. But foreign policy errors have heightened tensions, the currency wars are raging, and there is a negative fall-out from excess volatility.

Key take-out: The base case is that the global economy will remain very favourable, but a number of risks remain.

Key beneficiaries: General investors. Category: Economy.

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