Background to the 2019 Budget:
- The steady rate of global economic recovery is based on the expectations of investment rebound resulting from; strengthening commodity prices, and rising aggregate demand.
- However, the forecast also reflects the negative effects of rising trade barriers, the tightening of monetary policy, reversal of capital flows to emerging market economies, geopolitical tensions, and higher oil import bills.
- Growth in advanced economies is expected to decline from
2.4% in 2018 to 2.1% in 2019.
- In the Euro area, growth is projected to slow-down from 2.4% in 2017 to 2.0% in 2018 and 1.9% in 2019.
- Emerging Market and Developing Economies (EMDEs) in Asia are expected to maintain their robust performance, growing at 4.7% in 2018 and 2019.