The world economy: a coming crash?

In many respects, the world economy looks in relatively good shape. Yet there is potential for economic problems ahead. One assessment notes: ‘After a rocky 2018 and truly rough patches in 2019, especially particular sectors such as global manufacturing and U.S. agriculture, the consensus outlook for the global economy next year is surprisingly sanguine.’

But the article then notes that the positive mood is based on some optimistic assumptions. There are a host of worries by a variety of causes, including ‘still-simmering trade tensions, the ongoing Brexit saga, China’s economic transformation, worries about a sharp market correction, central banks with few bullets left to fire, historically massive piles of debt, or the usual geopolitical risks that could upend the best of projections’.

Is the world economy set for a major correction in 2020? Are we overdue a crash like the one in 2008? Have we managed to resolve any of the problems that created that crisis?