Global economic growth rut risks deepening despite rate cuts - Reuters polls

The latest Reuters poll of over 500 economists showed that the risks of a global economic slowdown are deepening, despite the recent dovish shift in the monetary policy adopted by major central banks, as worries over US-China trade war weigh.

Key Findings:

“Increasing pessimism is clear from the latest Reuters polls taken July 1-24, which show the growth outlook for nearly 90% of over 45 economies polled was either downgraded or left unchanged. That applied not just to this year but also 2020.

With the broad shift away by the world’s two biggest economies from freer trade toward tariffs, over 70% of around 250 economists who answered an additional question said a deeper global economic downturn is more likely than previously expected.

While the remaining respondents still expect a global rebound from the current rut, economists were split nearly 50-50 on that question only three months ago.

Nearly two-thirds of economists predicted trade tensions between the United States and its trading partners would intensify this year, and over 80% of respondents say this is the start of a global easing cycle.”