Cloudy outlook for our trade

The World Bank said global economic growth would lessen to 2.9 per cent this year, from a downwardly revised 3 per cent in 2018, citing 'rising downside risks' to the outlook

Financial year 2019-20 (FY20) begins on a rather sombre note, despite expectation of a rate cut by the Reserve Bank of India (RBI) and buoyancy in the equity markets. Various global and domestic factors are at play, casting doubts on achieving a sustained and robust economic recovery.

Global economic growth is expected to decelerate this year. In a report issued two months earlier, the International Monetary Fund estimated 3.7 per cent for 2018, as in the October 2018 World Economic Outlook forecast. Despite weaker performance in some economies, notably Europe and Asia, the global economy is projected to grow 3.5