TAIPEI CITY, Taiwan, October 23, 2018 (Newswire.com) - Analysts at Evans Chamberlain Asset Management say the outlook for global economic expansion has deteriorated for next year. Evans Chamberlain Asset Management analysts believe the escalating trade dispute between China and the US coupled with harsher financial conditions could cause the next economic slowdown.
At the beginning of this year, analysts at Evans Chamberlain Asset Management were optimistic about the outlook for the global economy forecasting robust economic expansion, but a recent survey by the Taiwan based investment house revealed that economists are less optimistic about economic prospects for next year.
Although the threat from growing trade protectionism is still a concern, analysts at Evans Chamberlain Asset Management say data indicates that growth in as many as two-thirds of the world’s economies has already peaked.
They say that although the US economy is booming, there is a divergence in the rest of the world with many countries experiencing a slowdown in economic growth.
The US Federal Reserve recently decided to hike interest rates to prevent the US economy from overheating, but Evans Chamberlain Asset Management analysts say this is limiting the policy options of other economies where tightening financial conditions and escalating trade tensions are having a negative impact.
The recent deterioration in economic outlook for next year comes in the wake of a massive sell-off in emerging markets which was fueled by trade worries.
Analysts at Evans Chamberlain Asset Management believe the main triggers for the next global economic slowdown would be a further escalation of trade tensions between the US and China and tighter financial conditions facing many of the world’s economies.
Source: Evans Chamberlain Asset Management