Bank of America expects global economy to bottom out next spring

Bank of America puts an end to the economic slowdown. The institution expects the global economy to bottom out next spring. The economic perspectives of the entity consider a progressive acceleration of the economy in the second half of 2020.

According to the bank, the global Gross Domestic Product (GDP) will grow above 3% in 2020, behind the growth rate of 3.8% of 2018. However, “several conditions have to be met,” said Rubén Segura Cayuela, chief economist for Europe of Bank of America.

As for Europe, growth “should stabilize at around 1%,” said the entity in its report. For the United States, Bank of America expects an average growth of 1.7% between 2020 and 2021.

Growth in Europe “should stabilize at around 1%”

“If the recession in the manufacturing sector continues, it will affect growth from the second half of the year, which could be reduced to 0.5% in Europe,” Segura explained. In addition, the economist mentioned a possible “spread” to other the services in the sector in countries such as Germany, which would lead consumers to build savings for “precautionary” reasons.

However, the Bank of America’s forecast reflects that the path to recovery has yet to be reached, taking into consideration that the trade war conflict between China and the United States slow down, and that exit agreement of United Kingdom from the European Union does not raise further complications.