The global economy weakened significantly in 2019, with GDP growth of 2.3 percent, down from 3.0 percent in 2018. However, a slight recovery in 2020 to 2.5 percent growth is likely, according to The Conference Board Global Economic Outlook 2020. In the long term, the global economy will grow about 2.7 percent by the middle of the next decade. Consumers worldwide will benefit from rising wages and low inflation rates, while companies continue to leverage innovation and digital transformation to boost core revenue and reduce costs, avoiding significant pressure on profits.
In addition to forecasts for 2020, The Conference Board Global Economic Outlook 2020 provides projections for global economic output growth, including 11 major regions and individual estimates for 33 developed economies and 36 emerging market economies for 2020 – 2024 and 2025 – 29.
The critical component of recovery in 2020 is the eventual bottoming out of the decline in industrial production. The slowdown, which originated in China in 2018, quickly spread around the world in 2019 and disrupted global supply chains, bringing some economies (like those of Germany and Japan) to the brink of recession. Emerging markets, in particular, will benefit from an industrial recovery, rising commodity and energy prices, and stable currencies.
“The global economy took a bigger hit in 2019 than anticipated, and it seems we have entered a world of stagnated growth,” says Bart van Ark, 
Chief Economist at The Conference Board. “But while fears of recession are widespread, we expect some recovery in 2020 as the issue of overproduction in China is addressed, supply chains are restructured, the risk of escalating trade disputes recedes, and productivity growth continues to recover.”
Although production may still contract temporarily in some locations (for example, in Germany, Italy, Japan, or the United Kingdom), as well as in some emerging markets (such as Brazil, Mexico, and Turkey), robust labor markets and strong consumer spending will continue to provide an important contribution to growth in most countries. The current unusually large gap between high consumer confidence and rapidly declining business confidence is likely to be resolved in favor of improving business confidence.
For more information on The Conference Board Global Economic Outlook, visit the website: www.conference-board.org