Households are hesitant about spending while businesses seem to be shying away from long- term spending commitments.
Stock markets have soared in the last year but world GDP is barely growing - and most of that has come from the Far East. On the high street, the feeling is one of stagnation.
An ageing population, low productivity, increased competition, high levels of debt, inequality and expensive pension promises have all contributed to a slower pace in economic growth. This trend is not new. When post WWII growth began to slow in the late 60s, economies made up for the shortfall with credit. Then, to support asset prices, they printed more cash which was funnelled into stocks and bonds.
So is the strength of markets achieved at a cost to real business? Is this the new paradigm for capitalism or will “normality” resume shortly? What is the impact on incomes, pensions and social benefits? There are plenty of issues that investors and businesses may need to consider.
If you would like to find out more about these big questions facing businesses and investors in 2020, join us for one of our Economics, Politics & Investments seminars, from 24 to 28 February. Events will take place at Mazars' office in Edinburgh on 28 February from 8.30–10am and Glasgow the same day from 1-2.30pm. You can reserve your place at one of our events by clicking here.
For more information about Mazars' Investment and Private Client services, please visit the website here.
