The first ICAEW #chartoftheweek for 2019 is on the subject of the global economy, with GDP forecast to add up to £69tn in 2019 based on data provided by the IMF.
The UK is expected to generate £2.2tn in economic activity in 2019, just over 3% of the world total. This reflects the UK’s position as a relatively rich country given that its 67m people make up less than 1% of the global population of 7.6bn.
Sterling weakness means that the UK is expected to be only the seventh largest economy in 2019, behind the US (£17.7tn), China (£11.3tn), Japan (£4.1tn), Germany (£3.2tn), India (£2.4tn) and France (£2.2tn). However, it should still be significantly ahead of Italy (£1.7tn), Brazil (£1.5tn), South Korea (£1.3tn), Canada (£1.3tn), Russia (£1.2tn), Spain (£1.1tn), Australia (£1.1tn) and Mexico (£1.0tn).
With Brexit scheduled for the end of Q1 and the potential for escalation in the US’s trade wars with China, Japan and the EU, is a world of strong economies possible in 2019? The only certainty is uncertainty.
However, despite the potentially stormy economic conditions ahead, we remain optimistic for the future. Poverty continues to fall around the world, and new innovations continue to improve the lives of billions of people.
And with that more cheery note, we wish you all the best for the coming year.