The U.S.-China trade war. Brexit. The decline of the European manufacturing sector. In 2019, the global economy saw a notable amount of turmoil stemming from the political arena. Almost no market or sector has been immune. The result: A dreary year for the global economy, with global economic growth slowing to 2.5%, trade expansion coming to a standstill and businesses everywhere halting investments due to mounting uncertainty.
While 2020 is expected to bring more of the same – slow growth, political upheaval – the good news is that a recession is still not likely, and if one does occur, it will be mild. That said, trade growth is expected to see only a modest rebound in 2020, with growth reaching 1.5%. Trade policy uncertainty will continue to plague the confidence of business leaders and exert far-reaching effects on supply chains. The biggest risks to business supply chains heading into 2020 include: