## 2019 in Review: The Global Economy Explained in 5 Charts

_IMF Blog, December 18, 2019_

## Source details

**Canonical URL:** [2019 in Review: The Global Economy Explained in 5 Charts](https://www.imf.org/en/blogs/articles/2019/12/18/blog121819-2019-in-review-five-charts)

## Other formats

- [Markdown version](/en/blogs/articles/2019/12/18/blog121819-2019-in-review-five-charts/index.md)
- [Structured JSON version](/en/blogs/articles/2019/12/18/blog121819-2019-in-review-five-charts/index.json)
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## Bibliographic details
- Authors: Gita Gopinath, Gian Maria Milesi-Ferretti, Malhar Nabar
- Published: December 18, 2019

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### Overview and headline findings
- Global growth in 2019 recorded its weakest pace since the global financial crisis a decade ago.
- Rising trade barriers and associated uncertainty weighed on business sentiment and activity globally.
- Country-specific weaknesses contributed notably in large emerging market economies: Brazil, India, Mexico, and Russia.
- Additional pressures arose from:
  - tighter financial conditions (Argentina),
  - geopolitical tensions (Iran),
  - social unrest (Venezuela, Libya, Yemen).

### Demand, production, and trade dynamics
- Firms became cautious on long-range spending as the economic environment became more uncertain.
- Global purchases of machinery and equipment decelerated.
- Household demand for durable goods weakened, with a pick up in the second quarter of 2019.
- Automobiles were particularly affected by regulatory changes, new emission standards, and possibly the shift to ride-shares.
- Firms scaled back industrial production in response to sluggish demand for durable goods.
- Global trade—which is intensive in durable final goods and the components used to produce them—slowed to a standstill.

### Monetary policy responses and effects
- Central banks reacted aggressively to weaker activity during the year.
- Several central banks including the US Federal Reserve, the European Central Bank (ECB), and large emerging market central banks cut interest rates.
- The ECB also restarted asset purchases.
- These policies averted a deeper slowdown.
- Lower interest rates and supportive financial conditions reinforced still-resilient purchases of nondurable goods and services, encouraging job creation.
- Tight labor markets and gradually rising wages supported consumer confidence and household spending.

### Outlook cue
- The IMF will release its World Economic Outlook Update on January 20.

*Gita Gopinath, Gian Maria Milesi-Ferretti, Malhar Nabar — December 18, 2019*

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## References

- [https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res1.png](https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res1.png)
- [https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10_-res2.png](https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10_-res2.png)
- [https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res3.png](https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res3.png)
- [https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res4.png](https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res4.png)
- [https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res5.png](https://www.imf.org/wp-content/uploads/2019/12/eng-dec-10-res5.png)

_Source: https://www.imf.org/en/blogs/articles/2019/12/18/blog121819-2019-in-review-five-charts_